Global markets recorded solid but not spectacular gains overnight, with an early rally in Europe petering out in the U.S. session.
European stocks climbed, rebounding from a three-week low, as investors weighed data on U.S. economic growth and house sales to gauge the Federal Reserve’s view on continuing stimulus measures.
In London, the FTSE 100 added 30 points (+0.5%) to finish at 6657 while the German DAX put on 64 points (+0.8%) to close at 8400.
U.S. stocks rose, following the Dow’s biggest drop in four weeks, as weaker-than-expected data on economic growth and jobless claims boosted speculation that the Federal Reserve will maintain stimulus.
The S&P 500 advanced by six points (+0.4%) to 1654 in New York while the Dow added 22 points (+0.1%) to close at 15325.
Gold climbed to a two-week high on speculation that the Federal Reserve will maintain bond purchases to bolster the U.S. economy, boosting demand for the precious metal as a store of value. Gold futures for August delivery advanced 1.5% to settle at $1412 an ounce on the Comex in New York.
Crude oil climbed from a four-week low as worse-than-expected economic data spurred speculation that the Federal Reserve will maintain stimulus.
Oil for July delivery increased $0.50 to settle at $93.60 a barrel on the New York Mercantile Exchange.
The U.S dollar dropped to a three-week low versus the euro as the U.S. economy expanded less than previously estimated and jobless-benefit claims rose.
Today the RBA will release the latest Private Sector Credit report, at 11:30 am.