Stock Market Today: Stocks Break Through Resistance Levels; Correction Fears on Back Burner – Yahoo Finance
However, the presence of dozens of Russian military vehicles near the border with Ukraine kept tension high. Sub-par economic data, which also showed the entire euro zone stagnated in the three months to end-June and inflation was just 0.4 percent in July, has helped drive German 10-year bond yields to record lows below 1 percent this week and led investors to raise their bets on the ECB launching QE. Ten-year German yields, which have also been pushed lower by investors concerned about conflict in Ukraine and the Middle East seeking a safe assets, were all but flat on Friday at 1.013 percent, having briefly dipped below 1 percent the previous day, according to traders. Yields have fallen for six weeks in succession.
Stand by: Stocks to see a 20% correction amid Fed tightening, says expert
European markets gained about 0.4 percent as investors anticipate the region’s central bank will use monetary stimulus to encourage growth. Asia was mixed overnight, with India and Japan rising more than 0.6 percent but China falling a similar amount. Today’s disappointing headlines came from Germany, whose 0.2 percent contraction in second-quarter gross domestic product was wider than the 0.1 percent drop forecast by economists. That follows poor European industrial production numbers earlier this week and follows a recent pattern of slowing activity on the Continent. Italy already slid back into recession last week.
Stocks inch higher despite European weakness – Yahoo Finance
European and Asian markets seemed intent on ignoring geopolitics hot stocks to buy right now this morning and focused instead on interest rates. The assumption is that weak economies and signs of incipient inflation will force central banks to continue to keep borrowing costs low. Read More: European Stocks Have Glass Half Full After Volatile Week Some data came in ahead of the open. U.S. producer prices rose 0.1% in July as expected, while the Empire State Manufacturing Index slid back in August after a substantial gain in July.
was quickly clouded by a slew of weak data. The economy added a less than expected number of jobs in July , while wage growth remained stagnant. Retail sales for July also remained almost unchanged from the month before, pointing towards a sluggish recovery in the U.S. Read More Why Janet Yellen should keep her day job jmiks | iStock / 360 | Getty Images This has made markets nervous in the short-term but some analysts are not convinced equities will see a major correction because the poor economic data has pushed back the prospect of a rate hike in early 2015. “If you look at the wage growth and inflation outlook, there is quite some way to go to raise rates in the U.S.