Australian Stock Report - Market Pulse

Morning Market Update: Syria Fears Ease

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Publish date: Fri, 30 Aug 2013, 10:10 AM
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Welcome to MarketPulse, the Australian Stock Report's financial market blog. In the MarketPulse blog we aim to provide frequent updates on current events across the financial markets, including market wraps, articles in the news, opinions, reviews, financial education and finally our top tip of the week. The blog is published by the Australian Stock Report research and report editing team together with our very own "Passionate Trader", Carl Capolingua.

Global stocks advanced overnight as data from the U.S. showed that the economy was growing faster-than-expected and as the prospect of an imminent strike on Syria eased.

European stocks rose erasing their monthly loss, as Vodafone Group surged to an 11-year high while data showed the U.S. economy grew faster than forecast in the second quarter and a drop in jobless claims beat estimates.

The Stoxx 600 added 0.8% to 300 at the close of the trading session in London. The FTSE 100 added 53 points (+0.8%) to close trading at 6483 while the German DAX put on 37 points (+0.5%) to settle at 8195.

Across the Atlantic U.S. stocks rose, sending the S&P 500 higher for a second session, as data showed the economy expanded at a faster pace in the second quarter and concerns over Syria eased.

The S&P 500 climbed three points (+0.2%) to finish trading at 1638, paring an earlier advance of as much as 0.7%. The blue-chip Dow gained 16 points (+0.1%) to settle at 14841.

The U.S. economy grew at a 2.5% annualized rate in the second quarter compared with the initial estimate of 1.7% and economists' median estimate of a 2.2% gain.

U.S. jobless claims in the week ended Aug. 24 dropped 6,000 to 331,000 from a revised 337,000 the week before. The median forecast of economists called for a drop to 332,000.

In commodity markets, gold retreated the most in more than two weeks as better-than-expected U.S. economic data reinforced the case for the Federal Reserve to slow stimulus measures.

Bullion futures for December delivery fell 0.4% to settle at $1,412.90 an ounce on the Comex in New York.

Crude fell from a two-year high as the outlook of an attack on Syria receded and as better-than-expected U.S. economic data raised speculation that the Federal Reserve will taper its stimulus. Crude oil for October delivery declined $1.30 to settle at $108.80 a barrel on the New York Mercantile Exchange.

In local economic news, the Reserve Bank of Australia will release its monthly Private Sector Credit report today at 11:30 am.

Morning Market Update: Syria Fears Ease is a post from: Australian Stock Report Market Pulse Blog

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