Improved Across The Globe

As this busy week comes to an end, the sentiment returns once again to advance in the market after the confirmed improvement in the performance of the European services sectors, which spread optimism in the market ahead of the critical jobs report from the world's largest economy. The purchasing managers' final indexes for services from the euro-area region, Germany and France confirmed the improvement in the services sectors in January, as we can see the French sector advanced to 52.3 from 50.3, while the German sector improved to 53.7 from 52.4, in the time the euro-area services sectors in general expanded to 50.4 from the previous contraction of 48.8. The confirmed improvement in the services sectors added positivity to the market on eased fears and jitters that the euro-area region ...

As the manufacturing sector showed improvement in January in China, Germany, the Euro-zone, UK and the US, fears from the deteriorating global economy diminished, increasing demand on the risky higher yielding assets, including the Asian stocks, where the MSCI Asia Pacific Index rose 1% at 14:50 in Tokyo. January’s PMI manufacturing was stronger across the globe, easing the worries over the ongoing euro zone debt crisis since Greece did not reach a deal with bondholders yet, and the US weak labor market confirmed by yesterday’s ADP employment reports which showed the US added fewer jobs in Jan. Investors continue to wait for a deal between Greece and the private bondholders that will ensure a second bailout for the indebted nation and avoid a messy default, yet fears over the region’s ...

The euro ended a strongly bearish week as the sentiment deteriorated further and investors’ appetite for risk declined, where fears spread in the market that the euro-area region will face possible downgrades in the coming period, especially after the downbeat bond auctions seen in Germany and France. With the start of the prior week, the euro traded narrowly on Monday and low-volume dominated the market, where several nations were still absent for the New Year’s holiday; however, the volume started to improve gradually through the week, especially with the heavy load of fundamentals released by major economies across the global. On Tuesday, the volume started to improve indeed, while the sentiment improved and optimism dominated the market, especially after fundamentals released showed ...

An improved outlook on the U.S. economy lifted Wall Street stocks and supported the euro on Friday, but any gains in the holiday-thinned markets could prove short-lived with nagging worries about the fiscal disarray in Europe. Signs that the U.S. economy is improving have strengthened in recent days after a string of healthy data, with Thursday's strong report on weekly jobless claims having a lasting impact. "Basically what we are seeing here is the realization now the U.S. economy is going to grow at a modest pace in 2012 and the euro is here to stay," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. The Dow Jones industrial average .DJI gained 42.35 points, or 0.35 percent, to 12,212.00. The Standard & Poor's 500 Index .SPX.INX gained 3.38 points, ...

(Reuters) - A better outlook for the U.S. economy boosted European stocks and supported the euro on Friday, but any gains in the holiday-thinned markets are likely to prove short-lived with concerns about the euro zone debt crisis undiminished. U.S. stock index future pointed to Wall Street edging higher and extending a rally into a fourth session, as a report that the Federal Reserve could hold rates down for longer than previously expected fuelled the upturn in sentiment. But euro zone fears kept a lid on any optimism. "There's no doubt that events in the euro area in the first quarter of next year... have the potential to have a profound impact across the globe," said Chris Scicluna, an economist at Daiwa Capital Markets. The single currency was up around 0.2 percent for the day at $ ...

(Reuters) - Signs of renewed momentum in the giant U.S. economy boosted European stocks and supported the euro on Friday, but any gains in holiday-thinned markets are likely to prove short-lived with concerns about the euro zone debt crisis undiminished. "There's no doubt that events in the euro area in the first quarter of next year... have the potential to have a profound impact across the globe," said Chris Scicluna, an economist at Daiwa Capital Markets. The single currency edged up 0.1 percent to $1.3065, holding above a recent 11-month low of $1.2945, although it remains down around 2.1 percent on the year. "The dollar is still seen as a funding currency when risk appetite improves and people will sell dollars on the back of that," said Chris Walker, currency strategist at UBS. " ...

With the start of a new week, optimism dominated markets after European leaders found common grounds to come up with a plan to tackle the debt crisis, while European finance ministers agreed to provide Greece with the European Union part of the sixth tranche of 2010’s bailout package; however downbeat fundamentals from the euro area eased the optimism and supported the demand for low yielding currencies. The U.S. dollar index (USDIX), which tracks the dollar’s movement against a basket of foreign currencies, started the day at 76.45, and recorded a high of 76.54 after reaching a low of 76.04, and is currently hovering around 76.48. The euro reversed to the downside against the U.S. dollar after the euro area manufacturing and services sectors contracted further in October, where the debt ...

Oil was heading on Friday for its first monthly rise in three as investors focused on forecasts of improved demand despite jitters over an elusive debt deal in the United States to avert a default and a credit downgrade. Prices also gained support from positive macroeconomic data from the United States on Wednesday and about 7 percent of output being shut in by producers in the Gulf of Mexico as Tropical Storm Don approaches. Brent crude for September rose 3 cents to $117.39 a barrel by 0511 GMT after closing Thursday down 7 cents at $117.36 a barrel. U.S. crude for September was down 37 cents at $97.07 a barrel, but was on track to rise 1.8 percent on the month, its first increase in three months. A deal to avert an imminent and unprecedented debt default by the world's largest economy ...

(Reuters) - U.S. unemployment is too high despite an improving economy, Federal Reserve Chairman Ben Bernanke told Congress on Wednesday, suggesting the central bank has no intention of cutting short a $600 billion bond-buying program. In testimony to the House of Representatives Budget Committee that largely echoed a speech he delivered last week, the Fed chief also warned about the dangers of unsustainable budget deficits. Acknowledging a recent pickup in the economy, Bernanke said a sharp drop in the jobless rate to 9 percent in January from 9.8 percent in November, the biggest two-month decline since 1958, was "grounds for optimism." However, he noted hiring is still anemic. "The job market has improved only slowly," he said, noting the economy had only made up just over one million ...