Economy
CLOSING BELL: August 14th: DJIA: 13,172.14 | UP 2.71 | +0.02%
OIL: $93.43, UP 0.70, +0.75%
GOLD: $1,602.40, DOWN 10.20, +0.63%
GASOLINE (US Avg): $3.72, UP .006
Global stocks, oil gain on stimulus bets; bonds slip
Richard Leong, Reuters - World stocks and oil prices rose on Tuesday, as stronger-than-expected U.S. retail sales data supported risk appetite while tepid growth figures in Europe underpinned expectations for fresh monetary stimulus.
A rise in U.S. retail sales in July, the first increase in four months, added to uncertainty in the bond market over whether growth has slowed to the point at which the U.S. Federal Reserve is likely to launch a new round of stimulus when it meets next month, driving down the price of Treasuries.
Prices of German government bonds also fell after data showed that France and Germany, the euro zone’s two biggest economies, had withstood a contraction in the currency bloc in the second quarter.
The U.S. retail sales data propelled gains in the dollar against the yen and pushed down the price of gold.
The economy of the 17-nation euro zone contracted by 0.2 percent in the second quarter, although Germany eked out growth of 0.3 percent. But even there, a forward-looking sentiment indicator pointed to poorer performance ahead.
“European markets continue to advance on the lack of incrementally bad news and the hope for further stimulus by the ECB,” said Lex van Dam, hedge fund manager at Hampstead Capital, which manages around $500 million of assets, in London.
Read the rest of this article at Reuters here.
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