China’s industrial production climbed 6.9% in October from a year earlier, faster than the 6.5% rise expected
Wall Street stock indexes closed higher on Friday, buoyed by optimism over the prospects of vaccines and treatments for COVID-19. The Dow Jones Industrial Average closed up 1.4%, the S&P 500 index gained 1.4% as well and registered a fresh all-time high for the first time since early-September. The Nasdaq Composite climbed 1%. For the week, the Dow gained 4.1%, the S&P 500 index rose 2.2%, and the Nasdaq lost 0.6%.
Asian stock markets rallied, hitting a record high on Monday, as strong economic data from China and Japan and vaccine optimism overshadowed worries about rising coronavirus cases. China’s industrial production climbed 6.9% in October from a year earlier, faster than the 6.5% rise expected. Retail sales gained 4.3% over a year ago, up 1% from the previous month. In Japan, the GDP grew at a 21% annual pace in the last quarter, the first quarter of growth in nearly a year. As a result, the MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1% to hit its all-time high.
European equities opened higher, helped by strong data out of Asia and vaccine hopes. Also, Spanish banks rallied after BBVA reached a pact to sell its U.S. division. On the virus front, Germany said it plans to decide about possible December restrictions next week. Spain’s IBEX 35 surged over 2%, the French CAC 40 rose nearly 1.0%, and the German DAX gained 0.7%.
Meanwhile, the dollar extends the decline to start the week as positive risk sentiment curbs demand for the safe-haven currency as FX is largely taking a cue from the mood in equities. EURUSD climbed to the 1.1870 area in recent trading, continuing to target the 1.19 barrier. If investor sentiment remains positive in the short term, the pair could challenge this hurdle, but it looks like the euro will hardly be able to make a decisive break above 1.19.