Wall street rose higher on Monday as recently released economic data reports have shown that factory activity improving in a number of key countries. At the same time, the healthcare sector showed marked gains during the session. Despite a monthly decrease in U.S. factory activity, October’s performance exceeded expectations. The Dow Jones Industrial Average gained 165.2 points, or 0.94%, to trade at 17,828.76. The S&P 500 index added 24.69 points, or 1.19%, to trade at 2,104.05, and the Nasdaq Composite rose 73.4 points, or 1.45%, to trade at 5,127.15. Chinese and German data reports have shown that manufacturing in both countries beat prior forecasts. According to Ed Hyland, global investment specialist at J.P. Morgan Private Bank, the global economy is on track for continued growth and decreasing fears over a recession, particularly in more developed countries. The end of the U.S. earnings reports season has shifted the focus back to economic data releases. The nonfarm payrolls report, scheduled to release on Friday, will hold special significance after the Federal Reserve’s recent hints at a December interest rate hike.
European stock markets rose as October’s Eurozone manufacturing purchasing managers’ index came in above expected forecasts. The German DAX 30 added 100.53 points, or 0.93%, to trade at 10,950.67 as all but two components move higher. Commerzbank (DE:CBKG) led with a 7.6% gain after posting better than expected results. Deutsche Bank (DE:DBKGn) rose 2% while Adidas (DE:ADSGN) and Merck (N:MRK) fell about 0.3%. The French CAC 40 rose 18.55 points, or 0.38%, to trade at 4,916.21. Automakers Renault (PA:RENA) and Peugeot SA (PA:PEUP) gained 3.1% and 0.4%, respectively. In the financials sector, Credit Agricole (PA:CAGR) and Societe Genrale rose 1.8% and 1.4%. The British FTSE 100 remained flat after rebounding from a decline in the mining sector. Rio Tinto (L:RIO), Anglo American (L:AAL), BHP Billiton (L:BLT), Antofagasta (L:ANTO) and Randgold Resources (L:RRS) fell between 1.4% and 2.2%.
This week’s upcoming economic data releases continue with Tuesday’s interest rate decision from the Australian central Bank. ADP’s initial U.S. unemployment survey will be released on Wednesday, ahead of the official nonfarm payrolls report on Friday. U.S. balance of trade will be released later on Wednesday, followed by a number of data releases from the Bank of England on Thursday, including inflation and an interest rate decision. U.S. nonfarm payrolls will be released on Friday, followed by U.S. and Canadian unemployment numbers later in the session.