Wednesday, 30 May 2012

Stocks rise despite mixed data

Investors turned optimistic on Tuesday, with both US and European stock markets rising. The S&P 500 rose 1.1 percent while the STOXX Europe 600 rose 0.8 percent. Spain’s 10-year yield decreased three basis points to 6.45 percent.

The gain in stocks was partly attributed to improved prospects for Greece staying in the euro after polls showed voters supporting politicians who back the nation’s bailout. Speculation of another China stimulus also helped, although Xinhua indicated that there will not be another massive stimulus plan.

However, US economic data on Tuesday were mixed. Home prices rose in March, the S&P/Case Shiller composite home price index of 20 metropolitan areas gaining 0.1 percent. However, the Conference Board's consumer confidence index fell for the third consecutive month to 64.9 in May from 68.7 in April.

Earlier in the day, Japanese stocks had also risen, the Nikkei 225 rising 0.7 percent.

Stocks in Japan rose despite weak economic data on Tuesday. Japan's unemployment rate rose to 4.6 percent in April from 4.5 percent in March. Household spending rose 2.6 percent in April from a year earlier but fell 0.8 percent from March.

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