A downbeat round of economic data kept a lid on the market’s gains. The number of Americans filing for jobless benefits jumped to 386,000 last week, the Labor Department reported, more than expected by economists polled by Dow Jones Newswires. The prior week’s reading was revised higher but remained at the lowest level since 2008.
Factory activity in the Mid-Atlantic region contracted, albeit at a slower pace, for a third straight month in July, according to the Federal Reserve Bank of Philadelphia’s index of manufacturing activity. The Conference Board’s leading economic index fell further than forecast.
European markets were broadly higher, with the Stoxx Europe 600 rising 1.1% as strong earnings and Germany’s expected approval of the aid plan for Spanish banks buoyed sentiment. Asian markets rallied on the back of strength in the U.S. and in resource stocks, which were boosted by continued gains in oil prices. China’s Shanghai Composite rose 0.7%, Australia’s S&P ASX 200 ran up 2%, and Japan’s Nikkei Stock Average advanced 0.8%.
Crude-oil futures rose 3.1% to settle at $92.66. Gold futures gained 0.6% to finish at $1580.10. The dollar ticked higher against the euro but fell versus the yen.
