Manufacturing data

trigger market rally

Better than expected US and Chinese manufacturing data gave European an US markets a welcome boost yesterday. Dow Jones reached 13 264 with the alloy producer Alcoa, Bank of America, Boeing and Chevron as winners. Nasdaq rose 0.91 % to 3119; Intel being the best high tech performer. Asian exchanges listed new gains with Nikkei as a winner due to a falling yen which is positive for the Japanese export industry. USD/JPY is down 0,38 % trading at 81,9225.

The Euro stays stabile versus USD trading at 1.3338 in spite of alarmingly weak unemployment figures from the Euro zone. Western Europe experienced its worst unemployment in 15 years. Spain and Greece have a registered unemployment on 23 % with the average EU-figures reaching double digits. The US-employment which is regarded weak, is in comparison below 9 %. These unemployment figures are for sure going to raise new questions regarding the weight the European Commission and member countries have been putting solely on austerity measures.

It is especially alarming for a future stabile democratic development in Europe that countries like Spain, Greece and Portugal which during its recent history have experienced military coups, civil wars and fascist dictatorships, are the ones most seriously hit. Economic growth stimuli has to a great degree been left out of the thinking of the European leading establishments.

The positive manufacturing data has pushed copper an oil prices higher. Copper, the best barometer on economic growth, is continuing to raise. After falling back in the end of last week and finding itself without a clear direction at the beginning of a new week, oil prices are again up; Nymex trading close to 105 and Brent at 125. Gold is up for the three day in row trading at 1678. Silver is trading at 32.08.