Global equity markets rallied on Thursday while the dollar pared losses against the euro as surprisingly strong United States housing and labor market data signaled strength in the world’s largest economy.
Reuters reported that strong demand at a Spanish debt auction added to bullish sentiment on riskier assets, while crude oil prices climbed.
The S&P 500 hit levels not seen since late December of 2007 as reports showed new claims for US unemployment benefits tumbled to a five-year low last week and housing starts surged last month.
“The unemployment claims were nice, the housing starts were nice, so that is positive for us. There are some good positive vibes out there,” said Harry Clark, chief executive of Clark Capital Management Group in Philadelphia.
The Dow Jones industrial average gained 96.90 points, or 0.72 per cent, at 13,608.13. The Standard & Poor’s 500 Index was up by 9.42 points, or 0.64 per cent, at 1,482.05. The Nasdaq Composite Index was up by 19.69 points, or 0.63 per cent, at 3,137.23.
World stock markets which have largely drifted sideways this week, rose by 0.5 per cent and were on track to hit a 20-month high.