The Growth of US and Euro indicators


American stocks edged higher on Monday. S&P 500 added 0.9%, driven up by communication and technology companies' shares. European indices marked an increase as well. Market participants sentiment was boosted with information on merger deals: Belgian Telnet bought Chinese cell operator Base. FTSEurofirst 300 Index climbed 0.8%. WTI futures have rose due to unexpected one-percent cut of capital requirements by Central bank of China. Gold prices rebounded on Tuesday and breached $1200 mark. Concerns about Greek debt crisis and tension in the Middle East increased the demand for the precious metal. Oil quotes slipped as Saudi Arabia reported it had ceased air strikes against Yemen.

Nikkei added 0.3% on Wednesday as investors continued adding to their portfolios shares of big cap companies. European indices closed in the red zone on Wednesday due to unresolved Greek debt issue and weak corporate reports. Stoxx Europe 600 slipped 0.03%.

On Thursday American indices climbed as the dollar tumbled. High-tech Nasdaq hit a new historical high due to positive earnings reports by Google, Microsoft and Amazon.com and other US companies. The weekly drop in corn prices may be the steepest in over three months. Market participants expect falling demand due to bird flue outbreaks in the USA. Soybean quotes had been rallying for two straight weeks because of truck drivers strike in Brazil.

On Friday American stocks surged further while the dollar retreated. Durable Goods Orders in March fairly outstripped forecasts, rising 4%. Investors must believe it makes the Fed rate hike less likely, which produces pressure against the dollar and boosts stock indices. S&P 500 recorded a new historical high. This was all for the week, we wish you happy trading and high volatility till the next week.

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