Saturday, 27 September 2014

Stocks rebound as US growth revised up

Stocks rebounded on Friday. The S&P 500 in particular rose 0.9 percent. The STOXX Europe 600 gained 0.3 percent. US 10-year Treasury yields rose three basis points to 2.53 percent.

Stocks were boosted by revised data on US GDP on Friday, which showed that the economy grew at a 4.6 percent annualised rate in the second quarter, faster than the previous estimate of 4.2 percent. Corporate profits before tax rose 8.4 percent last quarter, the most since the third quarter of 2010.

Another report from the US on Friday showed that the Thomson Reuters/University of Michigan consumer sentiment index increased to 84.6 in September from 82.5 in August, confirming a preliminary reading.

However, in Germany, a survey by GfK showed its consumer confidence index falling to 8.3 in October from 8.6 in September.

Early on Friday, Japan had reported that its consumer price inflation excluding fresh food slowed to 3.1 percent in August from 3.3 percent in July. Excluding the impact of the sales tax increase in April, the rise in core consumer prices was 1.1 percent, well below the Bank of Japan's 2.0 percent inflation target for next year.

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