MARKET NEWS IN LIMELIGHT U.S. stocks closed out a strong month on a quiet note on Friday, with the S&P 500 posting a modest gain to close at a new record as the latest positive data helped extend a rally that had been briefly threatened by overseas concerns. Separately, U.S. consumer sentiment rose more than expected, according to the final August reading from the Thomson Reuters/University of Michigan Surveys of Consumers. Data also showed that the Chicago purchasing managers index rose to 64.3 in August, from a reading of 52.6 the previous month, beating expectations for an increase to 56.0. The dollar rose on Friday, with traders looking beyond soft U.S. consumer-spending data, while the steadily sliding euro won a reprieve on diminished expectations the European Central Bank will soon ease monetary policy. The euro was on track for a second straight month of losses as euro zone annual inflation has slowed to a five-year low of 0.3 percent, well below the ECBs danger zone of 1.0 percent. In addition, official data showed that German retail sales declined 1.4% in July, disappointing expectations for a 0.1% rise, after a 1.0% gain in June, whose figure was revised from a previously estimated 1.3% advance. In the U.K., the Nationwide Building Society said that house price inflation climbed 0.8% this month, exceeding expectations for a 0.1% gain. For July, the change in house price inflation was revised to a 0.2% increase from a previously estimated 0.1% rise. The loonie saw some support of its own after Statistics Canada said the countrys gross domestic product expanded by 0.3% in June, in line with expectations. Year-on-year, Canadas economy grew by 3.1% in June, beating expectations for a 2.7% expansion. Official data earlier showed that household spending in Japan dropped at a annualized rate of 5.7% in July, compared to expectations for a 3.0% decline, after a 3.0% fall the previous month. A preliminary report also showed that Japans industrial production rose 0.2% last month, disappointing expectations for an increase of 1.0%, after a 3.4% drop in June. On a more positive note, retail sales in Japan rose at annualized rate of 0.5% in July, beating expectations for a 0.1% uptick, after a 0.6% fall in June. The Reserve Bank of Australia said July private sector credit rose 0.4%, missing an expected gain of 0.5%. An official index of Chinas manufacturing sector fell from a 27-month high to 51.1 in August, a government study showed on Monday, slightly less than forecast and adding to signs of growing softness in the Chinese economy. The final HSBC/Markit Purchasing Managers Index also dropped, slipping to 50.2 in August, roughly in line with a preliminary reading of 50.3 and only a shade above the 50-point mark that demarcates an expansion in activity from contraction. UP NEXT DAILY ECONOMIC CALENDAR!
Posted on: Mon, 01 Sep 2014 11:30:07 +0000
Trending Topics
Recently Viewed Topics
© 2015