Forex News – Optimism Spread in Markets after U.S. and China Economic Data.

Forex Mansion   |  June 14 2011 12:16 EDT

By ForexMansion.com

Optimism spread through U.S. markets on Tuesday after better than expected retail sales from the United States, and better than expected industrial production from China, in addition to the producer price index, which showed producer prices eased in May.

Retail sales dropped by 0.2% only in May, better than forecasts of a deeper drop of 0.5%, while retail sales excluding autos increased 0.3% above expectations of 0.2%, and retail sales excluding autos and gas also rose above expectations, which eased concerns about the extent of slowdown in economic activities during the second quarter, as while the U.S. economy seems to be losing pace, the recovery is still undergoing, which provided investors with optimism over the outlook.

Stocks in the United States rose at opening on Tuesday, where the Dow Jones Industrial Average was higher by nearly 1.15% to trade around 12,090, while the S&P 500 index rose by nearly 1.35% to trade around 1,289. European stock indexes were also higher before closing on Tuesday, where FTSE 100 was up by nearly 0.65% to trade at 5811 and the DAX was higher by nearly 1.85% to trade around 7215.

The U.S. dollar erased earlier losses against major currencies and was little changed against a basket of major currencies on Tuesday, where the U.S. dollar index was trading at 74.46, compared with the opening level at 74.42. The Euro rose against the Dollar, where the EUR/USD pair traded at $1.4452, compared with the opening level at $1.4414, and the British Pound also rose against the dollar, where the GBP/USD pair traded at $1.6403, up from the opening level at $1.6367.

Gold prices rose on Tuesday, where gold traded around $1521 an ounce, and crude oil prices were rose to trade near $98 a barrel.

Originally posted here

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