Wednesday, 24 May 2017

Markets shrug off Manchester blast amid positive eurozone data

Markets were mostly higher on Tuesday.

The S&P 500 rose 0.2 percent and the STOXX Europe 600 rose 0.2 percent.

However, the FTSE 100 fell 0.2 percent after a bomb explosion in Manchester left more than 20 people dead.

A report on Tuesday showed that the IHS Markit eurozone PMI held a six-year high in May at 56.8 while Germany's flash manufacturing PMI hit a 73-month high of 59.4. Also, Germany's Ifo business climate index rose to 114.6, an all-time high.

Carsten Brzeski, chief economist at ING, wrote that “the entire eurozone economy could become the positive growth surprise of 2017”.

While US flash PMI readings were mixed, Karyn Cavanaugh, senior market strategist at Voya Financial, said that the eurozone data “bodes well for global equities”.

In addition, Raymond James chief investment strategist Jeffrey Saut said that US corporate earnings “are going to continue to surprise on the upside”.

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