US stocks gain following better-than-estimated GDP data

US stocks rallied as faster-than-estimated growth in GDP fuels speculation the economy is strong enough to withstand higher interest rates.  The S&P rose 0.6% to 1,994.65. The Dow rallied 221.11 points (1.3%) to 17,195.42.

US economy up an annualized 3.5% in 3Q14

The US  economy expanded more than forecast in the 3Q14, validating the optimism  that  prompted  Fed  policy  makers  to  stop  pumping  money  into financial markets. GDP grew at a 3.5% annualized rate in 3Q14 (4.6% gain in  2Q14),  Commerce  Department  figures  showed.  The  median  forecast surveyed by Bloomberg called for a 3% advance in GDP.

Fewer Americans filed for jobless benefits in past month

Fewer  Americans  filed  applications  for  unemployment  benefits  over  the past  month  than  at  any  time  in  more  than  14  years,  a  sign  the strengthening  US  economy  is  buoying  the  labor  market.  The  four-week average of jobless claims  fell to 281,000 in the period ended Oct. 25  from 281,250 the week before, a Labor Department report showed. Bloomberg survey estimates ranged from weekly claims of 273,000 to 300,000.

Euro-area slump concerns ease as confidence improves

Economic  sentiment  in  the  euro-area  unexpectedly  rose  in  October  in  a sign that the 18-nation region has moved one step away from a renewed economic downturn.  An index of consumer confidence increased to 100.7 in October (99.9 in September), the European Commission said.  Median forecast surveyed by Bloomberg called for a drop to 99.7.

German unemployment unexpectedly drops most in six months

German  unemployment  unexpectedly  declined  in  October,  dropping  the most  in  six  months  in  a  sign  of  companies’  confidence  in  the  underlying strength  of  the  economy.  The  number  of  people  out  of  work  declined  a seasonally  adjusted  22,000  to  2.887mn  in  October,  the  Federal  Labor Agency said.  Median forecast surveyed by  Bloomberg News called for an increase of 4,000. The adjusted jobless rate was unchanged at 6.7%.

UK housing loses momentum with price growth at 9-month low

UK  house  price  growth  slowed  to  a  nine-month  low  October,  adding  to evidence  that  the  market  for  residential  property  is  cooling.  Annual  price gains fell to 9% in October  from 9.4%  in September, Nationwide Building Society  said.  Still,  prices  rose  0.5%  on  the  month  after  dropping  0.1%. Mortgage approvals fell to 61,267 while the £1.8bn increase in net lending was the least since January, Bank of England data showed.

Japan inflation slowest in six months challenges Kuroda

Japan’s inflation slowed to its lowest pace in half a year, underlining the challenge  to  central  bank  chief  Haruhiko  Kuroda’s  efforts  to  reflate  the economy.  Consumer  prices  excluding  fresh  food  increased  3.0%  yoy  in September  (3.1%  in  August),  the  statistics  bureau  said,  in  line  with  a median projection in a Bloomberg News survey of economists. Stripped of the effect of April’s sales-tax increase, core inflation was 1.0%.

Crude falls on Federal Reserve stimulus halt, US supply

WTI  oil fell after the  Fed  ended its asset-purchase program and US  crude production surged to the highest level since the 1980s. Brent for December settlement declined US$0.88 (1%) to US$86.24 a barrel.

Source: Bloomberg