Fed Rate Cut Hopes Lift US Stocks Amid Mixed Data; Euro, Yen Under Pressure

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Mood yesterday was mixed on a series of mixed economic and corporate news. In Europe, the business and consumer survey came in slightly lower than expected, thefell. The German stocks did better than their European peers as some big names like Siemens and SAP outperformed, while in the UK, thefinally cleared the critical $82pb resistance and returned to the positive trend that was building at the start of the year.

Other than that, the US trade deficit widened to the highest levels in 2 years, pending home sales fell 2% and the jobless claims rose to the highest levels since last summer. Data hinted at further slowdown in the US economy, but the slowdown didn’t look catastrophic.

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