Wall St. soars on upbeat Chinese data in a shallow week

by   |  VIEW 313
Wall St. soars on upbeat Chinese data in a shallow week

On Friday, the 1st of March, 2019, the Standard and Poor 500 and the Dow Jones Industrials surged on Friday after three consecutive days of losses, following reveal of upbeat Chinese economic data and a waning of geo-political tensions across the globe, although the gains were curbed largely by offbeat US consumer and manufacturing data.

On Friday (March 1st), a private survey data showed that the Chinese factory activity had contracted for three straight months in a row, however, the contraction rate had been slowing in February, signaling a slight improvement in the domestic demands, as a stockpile of policy stimulus had been kicked off since last January to grapple with an imminent slowdown.

Prior today’s data, the Official Chinese PMI survey had shown yesterday (February 28th), that, the numbers of new orders were expanding, and the data had also been brought into light after US posted a stronger-than-anticipated GDP growth in the final quarter of 2018.

Despite a bullish bias breezing through, the gains of Wall St. had smudged mostly by a drop of US manufacturing activity, which posted a record two-year low manufacturing activity figures. Apart from that, a survey conducted by the University of Michigan had also shown that the consumer sentiments had fallen short in February.

Despite a record drop in the US manufacturing index, Wall St. had eased earlier losses on Friday over cooled off geo-political tensions and a robust US GDP data, as during the preparation of this report, the Dow Jones Industrials was up by 0.28 percent and the S&P 500 added 0.41 percent, which had already posted an upsurge over 11 percent this year, and the Nasdaq Composite gained 0.58 percent.

Citing trade optimism as a major driver, a market strategist at Robert W. Baird in Milwaukee, Michael Antonelli said, “Certainly trade optimism is a driver for the markets right now. If China data continues to improve, that will start to put people’s minds at ease about whether China is in recession.

At this point, a little bit of a wet blanket is thrown over the rally, based on the U.S. economic data. ”