Wall Street surged on Thursday as investors cheered signs of strength in the US consumer and labour markets, easing fears of a recession. The S&P 500 and Nasdaq extended their winning streak to six days, gaining 1.60% and 2.40% respectively, while the Dow Jones rose by 555 points. The rally was fuelled by robust economic data, including retail sales that jumped 1% in July, significantly beating the expected 0.30% increase. Additionally, weekly jobless claims dropped to their lowest point since early July, further lifting market sentiment.
European stocks ended higher on Thursday, buoyed by momentum from Wall Street as strong economic data alleviated worries about a slowing global economy. The Eurozone’s STOXX 50 rose by 1.60%, closing at 4 805, while the pan-European STOXX 600 advanced 1.20%, finishing at 510. US retail sales surged well above expectations, and initial unemployment claims dropped to a one-month low, easing fears of stagnation that had led to a sharp equity selloff earlier this month following a weaker jobs report. Tech stocks led the rally, with ASML (AS:ASML) and Infineon both climbing over 4%, solidifying a strong week for chipmakers.
Chinese stocks rebounded from six-month lows on Thursday as investors digested mixed economic reports. “Data showed that retail sales rose more than anticipated in July, while industrial production missed forecasts. Fixed asset investments also fell short of expectations, the urban unemployment rate ticked higher and new home prices declined. The latest figures provided little clarity on China’s economic trajectory, while investors remain hopeful about more stimulus measures,” Trading Economics reported.
The local bourse saw its largest gain in a week on Thursday as data from the largest economy in the world further eased investors' recession fears. This positive data boosted market confidence, and helped the market recover from the August slump, which has been driven by concerns of a slowing economy following a disappointing July jobs report, according to Bloomberg. The FTSE/JSE All Share Index (ALSI) rose by 1.01% to 82 226 points, while the top 40 climbed 1.04% to 75 170 points. By 18h30, the rand had strengthened by 0.40% to R17.98/$ and by 0.61% to R19.75/€, while it remained relatively unchanged at R23.14/£.
Business Day reported that gold prices edged higher on Thursday, recovering slightly after a 1% drop in the previous session due to inflation data that lessened the likelihood of a significant rate cut in the US this September. Attention has now shifted to upcoming retail sales data. Gold increased by 0.45% to $2 458.34/oz, while platinum rose 4.60% to $961.83/oz. Brent crude was down 1.60% to $81.25 a barrel.
