Markets Turned Optimistic on Upbeat Data from China, EU and US

Markets felt optimistic after the Chinese GDP that showed an expansion in fourth quarter growth better than expected, adding that markets continued the sharp rebound after the upbeat European economic sentiment and the slowdown in inflation in addition to the Spanish bond sale.

On the other hand, sentiment continued to be positive after the European Financial Stability Facility (EFSF) sold the targeted amount of bills at an auction today which was met with strong demand.

Knowing that investors moved towards high yielding assets with European stocks gaining some momentum; the euro inclined against US dollar during today’s sessions erasing some of Friday’s losses.

In Europe, CAC 40 rose nearly 1.40%, while DAX inclined by 1.82%, while in US, Dow Jones rose nearly 0.96%, S&P 500 inclined by 0.86%, and NASDAQ rose by 1.09%.

In Currencies market, the euro inclined against USD trading around $1.2738 compared with opening levels at $1.2664, as demand for higher yielding assets increased somehow, while the pound rose trading at $1.5348.

The USD lost the momentum today trading around the 84.08 level, while the USD/YEN pair returned to opening levels to trade at 76.77. The AUD/USD pair inclined trading around the 1.0389, where gold rose trading around $1659.69, and oil also jumped trading at $100.30.