By Joyce Yu
Global equity markets climbed on upbeat economic data from China and the US even as the crisis over Korean Peninsula simmered in the background.
The Dow Jones Industrial Average rose 27.06 points, or 0.12%, to close at 21,892.43, the S&P 500 drifted higher 11.29 points, or 0.46% and the Nasdaq Composite gained 66.42 points, or 1.05%.
“I have doubts how sustainable the macro economy is, but perceived fundamentals are still OK. GDP confirmed that,” John Velis, macro strategist at State Street Global Markets in Boston shared in a Reuters’ report.
Data announced on Wednesday showed the U.S. economy expanded faster in the second quarter than previously predicted, while another report showed U.S. private-sector employers added 237,000 jobs in August, the biggest monthly growth in five months.
Over in China, the country surprised the market with its manufacturing unexpectedly strengthened in August. However, the construction and service sectors appeared to be slowing down.
“It feels like the strong close in U.S. markets last night has spilled over to this side of the Atlantic,” David Madden, market analyst at CMC Markets UK, said in a Bloomberg report. “Even though the North Korean tensions are still bubbling away in the background, traders are keen to move back into equities while the sense of panic has evaporated.”
Major European markets gained in early sessions Thursday, while Asian markets ended mixed overnight.
Lifted by market speculation that the European Central Bank would step in to weaken the euro and an expectation of a solid U.S. jobs report to be released on Friday, the greenback strengthened.
In addition, the July personal income and spending report be released by the U.S. Bureau of Economic Analysis today.
Both reports are expected to influence Fed’s decision on rate hike. The central bank will deliver its next monetary policy decision in about three weeks.
More data coming out today include Eurozone inflation and unemployment report. India and Canada are set to release their latest GDP data later.
Separately, Harvey has paralyzed more Gulf Coast refineries, with thirteen oil refineries shut down or in the process of closing. Altogether, the storm has disrupted about a fifth of America’s refining capacity, according to S&P Global Platts, sending gasoline futures to around $2 a gallon.
