Saturday, 18 October 2014

Markets rise, US housing starts jump

Markets finally saw a significant rebound on Friday. The S&P 500 rose 1.3 percent and the STOXX Europe 600 jumped 2.8 percent, the biggest rise in almost three years.

The US 10-year Treasury yield rose 4 basis points to 2.20 percent, the German 10-year bund yield rose 4 basis points to 0.86 percent but the Greek 10-year bond yield fell 87 basis points to 7.93 percent.

A remark by European Central Bank executive board member Benoit Coeure on Friday suggesting that the ECB will start “within the next days” to purchase assets in the new stimulus programme helped boost investor sentiment.

So did strong US economic data on Friday. Housing starts jumped 6.3 percent in September, building permits rose 1.5 percent and the preliminary Thomson Reuters/University of Michigan consumer sentiment index for October increased to 86.4, the highest since July 2007.

No comments:

Post a comment