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Dow Hits New High As Brightening Outlook Cheers Markets By Roland JACKSON
05/05/21 AT 12:25 PM
Global equities rebounded Wednesday as investors focused on bright earnings and data pointing to an economic recovery, lifting Wall Street to a new record high.
London rose 1.7 percent on the session, led by miners, for its highest close since the Covid-19 pandemic first hit Europe just over 14 months ago.
Frankfurt rose 2.1 percent and Paris added 1.4 percent as a survey showed April had the fastest growth of eurozone companies in nine months, sparking hope that the bloc would exit a double-dip recession.
On Wall Street, the Dow began cautiously and slipped briefly into the red, but pushed back as data showed the US jobs market strengthened last month even if payrolls still stand around eight million jobs down on pre-pandemic levels.
US Dollar Muted Following Miss on ISM Services PMI, NFPs Eyed
2021-05-05 14:30:00
Rich Dvorak,
Analyst
US DOLLAR OUTLOOK: SOFT ECONOMIC DATA COULD KEEP FED TAPER TALKS AT BAY
The US Dollar is little changed on the session as the DXY Index holds a tight trading range
Softer-than-expected ISM Services PMI and ADP payrolls data likely disappoints USD bulls
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The Institute of Supply Management (ISM) just released monthly PMI data on the US services sector. According to the DailyFX Economic Calendar, the headline ISM Services Index came in at 62.7 for April. This is slightly below market forecasts looking for a print of 64.1 and highlights a deceleration in services business activity growth from a reading of 63.7 reported last month. The US Dollar is having an overall muted reaction to the latest ISM Services PMI with the broader DXY Index little changed on the session around the 91.30-price level at the time of writing.
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ISM®
A rate of 62.7% means the economy is growing.
The report cited a shortage of construction contractors as the top economic concern in the services sector in April.
Due to high demand and shortage of supply of goods and services, pricing is experiencing inflationary pressures, which should be short lived.
Construction experienced the highest price increases of all 18 services industries.
The business activity index was at its highest since 1997.
Economic growth in April was strong, down only 1% from March’s record high of 63.7%, according to a monthly economic report.
The Institute of Supply Management (ISM) issues monthly economic reports on the manufacturing and services sectors based on surveys with executives in those industries.