(As of 7:25 am PST)
Markets are in full rally mode as investors reacted to
upbeat global data and yesterday’s dovish statements from the
US Federal Reserve. The Fed released
its most recent policy statement late Wednesday, calling the economic pace
“modest” and reiterating it would continue its stimulus package of $85 billion
per month in asset purchases. Other
central banks around the world followed the Fed’s stance, as today the European
Central Bank kept its key lending rate unchanged and the Bank of England also maintained its bond-buying programs.
Economic data fresh off the wire is adding to positive sentiment. The number of people filing for unemployment
benefits in the US fell last week to the lowest level in 5 years. The ISM report on manufacturing showed a
surge in activity for July, with the index jumping to 55.4 from 50.9 in June,
the highest level since August 2011. The
only disappointing report to hit this morning showed construction spending dropping unexpectedly in
June. Global economic data is strong today. The official PMI reading in
China registered a surprise gain in July which sent Asian markets higher. European markets are also higher on China and
the Fed. Commodity prices are up with
oil higher by 2.5% and gold inching higher.
Treasuries are sliding as the risk on trade has taken hold. Expect a positive day on the market today
with good news winning the day.
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