Tuesday, 10 December 2013

Stocks rise, global economic outlook improves

Stocks rose on Monday. The S&P 500 rose 0.2 percent to a new record high. The STOXX Europe 600 also rose 0.2 percent while the MSCI Asia Pacific Index gained 0.8 percent.

Stocks rose as the Organisation for Economic Cooperation and Development said on Monday that the outlook for most major economies has improved. Its composite leading indicator rose to 100.7 in October from 100.6 in September.

The OECD noted that growth in the euro area has returned to its long-term trend rate, with the region's composite leading indicator rising to 100.9 in October from 100.7 in September. The reading for the US was unchanged at 100.8 while the reading for Japan rose to 101.3 from 101.1.

Economic data from Japan on Monday were mixed though.

Japan's third quarter growth was revised down to 0.3 percent from 0.5 percent after second quarter growth of 0.9 percent and the current account fell back into deficit in October.

However, the Cabinet Office's economy watchers survey showed that its current conditions index rose to 53.5 in November from 51.8 in October. The future conditions index rose to 54.8 from 54.5.

Data from Germany on Monday were also mixed. Industrial production fell 1.2 percent in October after having fallen 0.7 percent in September. However, exports rose 0.2 percent in October while imports rose 2.9 percent.

Meanwhile, China's inflation continued to cool in November. The inflation rate fell to 3.0 percent in November from 3.2 percent in October.

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