Global Recovery Boosts Stocks and Euro

The global economy showed signs of improvement on Thursday with factory output improving in two of the world’s largest economies.

Euro zone flash composite purchasing manager’s index (PMI) rose to 51.7 in August, from 50.5 last month, beating estimates. It was the best reading since June 2011.

In China, HSBC’s preliminary reading of PMI data crossed the key 50-level, which signals expansion, for the first time in four months.
The FTSEurofirst 300 Index and the euro rose against the dollar after the news and China’s benchmark index outperformed other Asian stocks.
The boost to markets comes during a period of heightened tension over when the U.S. Federal Reserve could start tapering its $85 billion-a-month asset purchases program.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza