Global Stocks Show Signs of Improvement: But For How Long?
Stock markets in Europe continue to show a small recovery after significant sell-offs, especially in the technology sector. US futures also pointed to a higher opening bell on Thursday, as investors looked ahead to a flurry of economic data. All three US major indices (S&P 500, Dow and Nasdaq) closed in the negative on Wednesday, under pressure from fears of a potential trade war and growing concern over technology regulation.
The US economy grew faster than initially thought in the fourth quarter of 2017, according to data released on Wednesday. The Commerce Department data showed, that GDP grew by 2.9%, up from 2.5%. That was higher than economists’ forecasts for growth of 2.7% and was up from 2.5% in the previous quarter. Meanwhile, the GDP price index was unchanged at 2.3% while GDP sales rose to 3.4% from 3.3% the prior quarter.
Investors are focused on the release of US economic data. The US will publish core PCE price index (the Fed's preferred inflation gauge), personal income/spending data, initial weekly jobless claims, Chicago PMI and revised UoM consumer sentiment. Markets expect a 0.2% mom increase of the core PCE, while the headline indicator is also expected to come in at +0.2% mom. Meanwhile, jobless claims are awaited to grow to 230k.