The prospects of increased U.S. fiscal spending boost investor sentiment
Wall Street stocks were mostly higher overnight, as investors cheered upbeat economic data out of the United States. The number of Americans who filed for unemployment benefits fell last week to a fresh pandemic low of 406,000 while the U.S. economy grew at a 6.4% annual rate in the first quarter. On the negative side, sales of durable goods fell 1.3%. As such, the S&P 500 rose 0.12%, the Dow Jones Industrial Average gained 0.41%, and the Nasdaq shed just 0.01%.
Asian equities were mostly higher on Friday, as the focus is turning to a multi-trillion-dollar spending boost by the Biden administration. According to the latest report, President Joe Biden will seek $6 trillion in federal spending for the 2022 fiscal year. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3%, hitting its highest level this month. Bucking the trend, China’s Shanghai Composite ended 0.22% lower. U.S. stocks were also poised for further gains.
European equities opened higher today, rising to fresh all-time highs, with the prospects of increased U.S. fiscal spending boosting investor sentiment. The pan-European STOXX 600 index rose 0.5% in early trade. European economic sentiment and consumer confidence data due later today along with fresh economic reports out of the United States including the PCE data.
Meanwhile, the dollar regained some bullish bias on Friday, buoyed by strong GDP and employment data. EURUSD failed to get back above the 1.2200 figure while deriving support from this week’s lows around 1.2170. A break below this area would pave the way towards the ascending 20-DMA, today at 1.2143. Upbeat economic data out of the US could add to a more positive tone surrounding the greenback later today.
