Strong US economic data spread euphoria across equity markets

Wednesday, November 27, 2013

European equity markets climbed higher on Wednesday, supported by better than expected US economic data which increased risk appetite and boosted market confidence. CAC, DAX and IBEX stock exchanges gained between 0.55% and 0.97%, while the London equity market has also extended gains to retest 6650 points. 

In the meantime, Wall Street equity markets continue their upside momentum with Dow Jones gaining more than 30 points at the time of writing, while S&P 500 breached above the 1,800 points.

On the macroeconomic front, UK GDP data was reported in-line with analysts’ expectations, showing 0.8% growth in Q3 2013, verifying the signs of improvement in the UK economy. In addition, an agreement over a coalition government in Germany boosted market confidence. In the US, strong employment figures as well as robust economic data including building permits, Chicago PMI and Michigan survey spread euphoria across the equity markets, driving the US dollar sharply higher with the USD index trading toward 81.0 area.

In London, financial and mining stocks outweighed any losses in the energy sector. Lloyds, Aviva, Resolution and Prudential gained between 1.4% and 2.6%, showing increasing risk appetite. On the other hand, BP and Royal Dutch Shell retreated by 1.08% and 0.44%, respectively, as crude oil prices came under renewed pressure following a bearish oil fundamental report from EIA that showed large builds in crude and gasoline stocks.

Please note the US markets are closed tomorrow for the US Thanksgiving holiday. 

 

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