Stocks Rally on European Response to Debt Crisis
Stocks and the risk sensitive Euro have gained today breaking a four day losing streak as positive jobs data is released from the US and speculation mounts that European lenders will step up their response to the debt crisis. The S&P 500 has rallied 2% the biggest move for two weeks. This has subsequently fired up risk appetite in the UK stock market with the FTSE also rallying 2%.
The ISM manufacturing report today has indicated expansion for the 16th consecutive month in November. Businesses are clearly starting to feel more comfortable with the outlook moving forward into 2011. The positive sentiment is clearly helping with new jobs with the ADP employment report showing today that 93,000 jobs have been added in November. This boost is more than previously forecast and is another positive release in a line of positive economic data coming out of the US. The data shows that the economy is expanding and that the pickup in jobs is helping to generate more income. This should subsequently lead to a rise in consumer spending. The likelihood is that the recovery will continue into 2011 now momentum has been gained.
Jean Claude Trichet spoke earlier today and clearly indicated that his wish is for the Euro to stay strong. He has said that investors underestimate the determination of EU policy makers to support the shared currency. Comments like these clearly indicate that policy makers in the Eurozone are fearful that the fall out of the Irish banking crisis is having significant negative effects on their currency. Tomorrow sees influential data from the Eurozone with Q3 GDP, the ECB rate announcement and pending home sales in the UK.
Torfx Currency Dealer
0044 1736 335285
If you have a currency requirement or have any questions or queries about market activity please don’t hesitate to contact me on my direct dial.
Currency Articles - May 22, 2019 15:21 - 0 Comments
More In Currency Articles
- GBP Gets Ready for an Unpredictable Day with Meaningful Vote 2
- British Pound Stays Strong Whilst The Dollar Remains Weak
Gold and Oil News - Jun 26, 2019 11:29 - 0 Comments
More In Gold and Oil News
Shares and Markets - May 13, 2019 11:15 - 0 Comments
More In Shares and Markets
- Share Prices Undecided on Direction as Brexit Uncertainty Continues
- FTSE / DAX Still Weak Moving Into End of Year