Stocks power higher on stronger macro data

<p>Stocks remained strong going into the European close wiping out all of yesterday’s losses on stronger than expected macroeconomic data. Euro-zone output and UK service […]</p>

Stocks remained strong going into the European close wiping out all of yesterday’s losses on stronger than expected macroeconomic data.

Euro-zone output and UK service sector PMI got markets off to a good start this morning, outweighing a slightly weaker than expected Euro-zone retail sales number. Stocks and Indices alike got a second wind in the afternoon session after U.S. ISM Non Manufacturing figures helped to underpin gains by showing a rise to 53.2 in September from 51.2 in August.

Sentiment was also given a boost by the news out overnight that the Bank of Japan voted unanimously to cut its key overnight rate to between 0 and 0.1 percent. The bank also promised to keep rates close to zero for the foreseeable future and that it would pump some of its $60 billion temporary fund into corporate debt. Naturally investors in Europe will now look to the Bank of England and the Fed to tow a similar line to maintain fragile economic growth.

Leisure and travel stocks were amongst the biggest gainers on the FTSE 100 after travel firm TUI said it was confident that full year trading would be in line with previous guidance. The company also added that it expects to reduce its debt as booking rise over the coming months.

Although markets across Europe have put in a stellar performance today, volume has remained slightly below average for this time of year. This lower level could be set to continue for the rest of the week as investors look ahead to Friday’s U.S. Non Farm Payroll data. In recent months the jobs numbers have been the catalyst to power markets higher and push them above key resistance levels.

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