Emerging equities hovered near 17-month highs while the bloc's private sector expanded at its fastest rate in three months in July due to China's strong IPM, leading the euro to pull off eight-month lows on Thursday. After China's Markit's Composite Purchasing Managers' Index released encouraging data of companies across the euro zone, European stocks rose as well, reports Reuters.
The overall index increased to 54.0 in July from 52.8, which is its highest since April. Any number above 50 indicates expansion. Bloomberg reports that the Stoxx Europe 600 Index also rose 0.3 percent.
According to Reuters, the euro reached the day's highs at $1.3471, while the dollar index fell from its recent six-week peak.
Geoff Yu, a currency strategist at UBS said, "The activity data offsets some of the weakness we saw last month and that has helped the euro. But there are concerns about domestic growth in the euro zone and possible sanctions on Russia are likely to have an impact," as quoted by Reuters.
EU states will convene later on Thursday to discuss harsher sanctions against Russia for its continued involvement in the Ukraine and support for pro-Moscow rebels, who were accused of shooting down Malaysia Airlines Flight MH17.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
