American Dollar, global stocks rise after upbeat US economic data

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American Dollar, global stocks rise after upbeat US economic data

On Friday, a gauge of global equity indices had stepped up and the American Dollar had snapped an eight-week long losing streak, as a fresh impetus in US business activity as revealed by the IHS Markit PMI survey had helped lift the American currency alongside global equities higher, however, oil futures fell about 1 per cent over dour projection on demand outlook alongside a supply glut.

Aside from that, in the Wall St., the Nasdaq and S&P 500 had wrapped up the day at record closing highs, while the American Dollar Index (DXY) measured against a basket of six major currencies gained 0.63 per cent, mostly due to a steep downfall of the bloc’s single currency following reveal of a preliminary PMI data that the European economy’s rebound from the pandemic-driven slump had been slowing down over the recent months.

Global stocks, Dollar rise as US business activities hit 18-month highs in August

In point of fact, Friday’s stubborn rally of the American currency alongside a basket of global bourses came forth after an IHS Markit survey report had revealed that the US manufacturing and service sectors activities had spiked to a nearly early-2019 level this month, eventually leading to a revival of risk appetite for the greenback alongside global equities.

Adding further bullish wind to the market participants’ optimism, US home sales data for July had revealed that the US housing market had been accelerating at a record pace for the second straight month on July, while taking account of a record gain on US home sales in June, past couple of months had witnessed a rise of roughly 50 per cent in US home sales.

Citing statistics, on Friday’s Wall St. closure, Dow rose by 0.69 per cent to 27,930.33, S&P 500 had throttled 0.34 per cent higher to 3,397.16 and the Nasdaq added 0.42 per cent to 11,311.80, while the MSCI’s index for a gauge of global equities that keeps track of 49 stock exchanges across the globe climbed 0.27 per cent to 571.17.

Meanwhile, adding that a re-opening of US economy had yielded the August gains, a chief investment strategist at Ally Invest, Lindsey Bell said, “It’s not surprising to see a pick-up in manufacturing as the economy has started to reopen, even though pockets of the country have pulled back on their reopenings. It’s an encouraging sign and it supports the upside we have seen in the markets”.