Global markets were upbeat, with positive results and economic growth from most of the major markets. Europe in particular seems to be adjusting well, as France, Germany and Belgium saw a boost in their economic indicators. Investors in New Zealand’s were delighted by the announcements by its central bank. Within their borders, things also seem to be looking up in Japan. European equities increased by 0.5 percent, thanks to the improved performance of the mining and banking sectors. This came as expectation of a rebound in growth for the EU zone was confirmed. The Euro also improved against the Dollar.
The Purchasing Managers’ Index (PMI) results in France and Germany came back positive. Private sector growth in France improved by its largest margin in ten months. Germany also got encouraging reports from its manufacturing and services sector. The Danish economy is also up due to the increase in consumer confidence. This shows solid recovery in Europe, putting aside most of the fears regarding the aftermath of the Brexit. Asia-Pacific shares also saw a slight bump. The stock markets in South Korea, Shanghai and Australia saw gains, with the only decrease being in Japan’s Nikkei. The New Zealand dollar was up slightly, after its central bank announced possible rate cuts of 35 basis points, which is lower than what analysts expected.
The Dollar was weakened against a basket of global currencies, though it saw a slight improvement against the Japanese Yen. Investors were discouraged by the silence of the Fed regarding a hike in interest rate later this year, with many expecting it not to happen. The dip might be rectified however, after Fed Chair Janet Yellen gives her address at the annual central bank symposium on Friday, in Jackson Hole.