Two commodities that reflect the state of the global economy were active on Wednesday, indicating the three major indices are likely to be animated as well, Bloomberg reports.
Thursday, May 8, 2014
Crude oil, whose two top users respectively are the U.S. and China, was climbing in value as demand for the energy commodity typically indicates the temperature of nations' consumption. Copper, which is sensitive to worldwide economic and financial developments due to its use in construction, manufacturing and additional industry, was slumping in value. The reddish metal's top user is China, which has been navigating rough economic times as of late. After midday in New York on May 7, the Nasdaq Composite edged down 0.73 percent, a 29.54 point fall to 5,051.07; the Standard & Poor's 500 moderately gained 0.36 percent, a lift of 6.79 points to 1,874.72; and the Dow Jones Industrial Average slightly rose 0.7 percent, a 115.22 point increase to 16,516.24.
China spurs home purchases
Cities in the Asian nation are re-doubling efforts to spur home investment, according to Reuters. That demonstrates the country's leadership is aiming to address its domestic ills and counter by stimulating economic growth. The nation has long sought to establish the yuan, colloquially known as the "redback," as another world's reserve currency. That would make the renminbi the second one as it operates against the greenback. Some analysts said the status of the property market in China is likely to indicate the extent of the nation's downturn.
S&P companies release strong returns
An estimated three quarters of Standard & Poor's companies that disclose their data have trumped projections issued by analysts, economists and investors, according to Bloomberg. Slightly more than half pushed beyond forecasts regarding sales. As the second quarter of 2014 proceeds, the struggles of a global economic power player are clear and coming into sharper focus, as are the country's efforts to staunch the backwardation. By contrast U.S. Federal Reserve chair Janet Yellen is slated to tell U.S. Congress that the economy she and the body she leads is charged with supporting continues to grow stronger, making the October closure of monetary stimulus measures more realistic.
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