Friday, 24 October 2014

Markets rally amid positive economic data

Markets resumed their rally on Thursday. The S&P 500 rose 1.2 percent and the STOXX Europe 600 rose 0.7 percent.

The US 10-year Treasury yield rose six basis points to 2.27 percent. Oil and copper also rose.

Positive economic data on Thursday helped boost markets.

In the US, Markit's preliminary manufacturing PMI for October showed a fall to 56.2 in from 57.5 in September but remained well in expansion territory while the Chicago Federal Reserve's national activity index jumped to +0.47 in September from -0.25 in August.

US economic growth is likely to be maintained after the Conference Board's US index of leading indicators rose 0.8 percent in September.

Economic data for the euro area on Thursday were also positive. Markit's preliminary composite PMI for the region for October showed a rise to 52.2 from 52.0 in September, with the manufacturing PMI rising to 50.7 from 50.3 and the services PMI remaining unchanged at 52.4. The European Commission's consumer confidence index for the euro area rose 0.3 points to -11.1 in October.

In China, HSBC's preliminary manufacturing PMI for October showed a rise to 50.4 from 50.2 in September.

In Japan, the Markit/JMMA flash manufacturing PMI for October showed a rise to 52.8 in October from 51.7 in September.

Unusually, the UK provided the weakest economic data among the major economies on Thursday. Retail sales fell 0.3 percent in September while mortgage approvals fell to 39,271 from 41,361 in August.

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