Global stocks gain on ECB stimulus hopes, U.S. economic data
Published on Aug 27, 2014 4:52 AM
NEW YORK (Reuters) - Worldwide stock indexes rose modestly on Tuesday and European bond yields fell on expectations of more stimulus from the European Central Bank, while strong U.S. data on durable goods and consumer confidence underpinned U.S shares.
Wall Street's benchmark S&P 500 closed above the 2,000 mark for the first time, while the Dow hit an intraday record. Speculation grew that the European Central Bank is preparing a program of large-scale asset purchases to weaken the euro and try to jump-start growth in the struggling euro zone.
Those expectations have bolstered European bond and stock markets since Friday, when ECB President Mario Draghi hinted at a policy shift in a speech in Jackson Hole, Wyoming.
"Draghi's readiness to do more is providing the necessary boost for equity indexes," said Mr Ashraf Laidi, chief global strategist at City Index. "Buying on the dips does remain the path of least resistance in the absence of any destabilising factor."
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