Euro gains on ECB; stocks up with economic data
The euro rose on Monday on expectations of higher euro-zone interest rates while world stocks eked out gains as concerns about Middle East and Japan cast a cloud despite positive economic data. The euro rose above USD 1.41 after the president European Central Bank president Jean-Claude Trichet said inflation is above the bank's price stability target, adding to expectations that interest rates could rise as early as next month. The European currency erased most of its gains later, however, pressured by worries that the defeat of German Chancellor Angela Merkel's party in a key state election means she will have less leeway to financially support debt-stricken members of the euro zone. Data showing that US consumer spending rose for an eighth straight month rise supported equities. US consumer spending rose slightly more than forecast as households tapped their savings to cover higher food and energy prices, while inflation accelerated at its fastest pace sinc
Comments
Post a Comment