U.S. economic growth on course for best month since November

3 minutes

MSCI shares set for the best month since November to represent what they are, because it was more challenging to learn from a financial manager than real estate.

NEW YORK, April 29 - The international stock indexes extended gains and Treasury yields rose on Thursday after strong U.S. economic data and the stimulus to continue supporting the economy fueled confidence in a recovery.

In the first quarter, the US economic development accelerated - fueled by massive government aid for households and businesses. This is charting the course for what will be expected to be the strongest annual performance in nearly four decades.

Assuming that the COVID variants remain contained, the second quarter is planned for a further acceleration in growth as the re-openings continue, said Katherine Judge, senior economist at CIBC Capital Markets.

New York City aims to reopen fully on July 1 after more than a year of closures and capacity restrictions, said the Mayor Bill de Blasio.

MSCI's stock gauge across the globe has 0.33%, closed at an all-time high and continued on course for its best month since November.

The S&P 500 also closed at a record high.The Nasdaq Composite hit a record intraday high before paring some gains.

The Dow Jones Industrial Average gained 219.98 points or 0.71% to 34,060. 36. The S&P 500 added 28.29 points, or 0.68%, to 4,211. 47 and the Nasdaq Composite increased 31.52 points, or 0.22%, to 14,082.

Benchmark 10 year Treasury notes fell on Wednesday to yield 1.6343%, from 1.62% last year.

The economy will run hot these next couple of months and the credit market sell off will return and might test Treasury yields attempt to test the end of March highs, said Edward Moya, a senior market analyst at OANDA in New York.

The dollar remained on nine-week lows as the White House's bold outlook and the Fed's dovish spending plans increased expectations that inflation will rise.

The dollar index rose 0.85%, with the Euro up 0.03% to $1.2127.

On Wednesday Chairman Jerome Powell said that it is not time to begin discussing any change in policy after the U.S. central bank raised interest rates and its bond-buying program despite having a more optimistic view of the country's economic recovery.

Later on Wednesday, president Joe Biden proposed a joint $1.8 trillion plan in a speech to a sweeping new congressional session.

Both Fed positions on high performance, strong U.S. corporate earnings and the notion that Biden is over-compliant with infrastructure were all strong for markets, said Fran ois Savary, chief investment officer at the Swiss wealth manager Prime Partners.

The Fed confirmed the roadmap for a change in direction, which is a reassuring factor, he said.It looks like tapering won't materialize until 2022 and that has induced weakness for the currency, it means less pressure on emerging markets and is designed to reduce competition.

The broadest index of the Asia-Pacific shares outside Japan rose 0.14% higher, while Japans Nikkei closed 0.21%.

European stocks ended as a steep increase in euro zone bond yields caused investors to lock in profits at near-record levels.

The pan-European STOXX 600 index troughly slipped to 438.77, further off a record high of 443.61 hit last week.

Oil prices were on track to hit six-week highs as strongly US economic data, a weak dollar and an expected recovery in demand outweighed concerns over rising output and the impact of higher COVID 19 cases in Brazil and India.

The U.S. crude futures settled at $65.00 per barrel in Dubai, up 1.8%.Brent crude prices, up 1.9% per barrel, continue to have upward trend with $68.56 per barrel.

German gold futures GCv 1 increased with 0.3% at $1,768. 3.

  • Comments
Loading comments...