US retail sales rise, European bailout fund downgraded

US economic data on Monday were mixed.

Retail sales rose 0.4 percent in June, driven by a 1.8 percent gain at automobile and parts dealers. However, excluding autos and gasoline, retail sales fell 0.1 percent, the first decline in a year.

The Federal Reserve Bank of New York’s general economic index rose to 9.5 in July, the highest since February, from 7.8 in June.

Another report on Monday showed that business inventories rose 0.1 percent in May.

Following the economic reports on Monday, economists now see the US economy growing at 1.1 percent in the second quarter, down from a previous forecast of 1.4 percent.

Despite the mixed economic data, US stocks rose on Monday. The S&P 500 gained 0.1 percent, its eighth consecutive increase, making the current run the longest winning streak since January.

European stocks also gained on Monday, the STOXX Europe 600 rising 0.4 percent.

However, following its downgrade of France's credit rating at the end of last week, Fitch Ratings downgraded the European Financial Stability Facility's credit rating to AA+ from AAA on Monday.

"Following the downgrade of France's IDR (issuer default rating), the EFSF's long-term debt issues are not fully covered by 'AAA' guarantees and over-guarantees and, for debt issued before October 2011, by the cash reserve," Fitch said in a statement.