Europe heads mainly higher as data points to a roaring recovery
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European bourses are moving broadly higher, extending strong gains from the previous session as optimism surrounding the economic outlook brightens.
Covid cases on the old continent are declining, lockdown restrictions are easing, and economic data is strengthening. There’s a lot to like about Europe’s position at the moment. The region appears to be mounting a powerful rebound from its technical recession.
Eurozone PMIs show growth
PMI data from the Eurozone showed the region remained firmly in expansion territory, helped by a strong rebound in the service sector. The service sector saw activity surge to 55.1 on the Markit/ IHS PMI gauge in May, firmly up from 50.5 recorded in April. The 50-level separates expansion from contraction. The composite PMI, which is considered a gauge of business activity, rose to 56.9 in May, up from 53.8 the previous month. Firm growth is evident in th
Asian equities rally
Asia markets higher after Wall Street gains
Asia Pacific stock markets are off to a positive start today on the back of positive regional data and Wall Street finishing on a positive note. Overnight, the S&P 500 gained 0.37%, with technology outperforming. The Nasdaq leapt by 1.54%, with the Dow Jones almost unchanged. Month-end rotation trades dominated proceedings after the ADP data and the Biden infrastructure package caused no ructions in the US bond market. I suspect the news was priced into financial markets at a much higher level than I expected, muting its impact.
President Biden announced the first details of his highly anticipated infrastructure programme overnight. The package itself totalled around USD2.25 trillion of spending over 10 years, with approximately USD1.60 trillion of corporate tax rises phased in over 15 years. Biden did not mention the expected hike in income taxes for higher earners or on capital gains taxes, which will be needed i