The U.S. stocks fluctuated with narrow ranges last Friday and this Monday, but touched a new high as the good economic data in the Tuesday morning trading session. The Dow Jones Industrial Average once touched the highest intraday level of 13,338.66 points and finally settled at 13,279.32, hitting a new high since the end of 2007.
The data released today show the March construction spending in the United Statesincreased by 0.7%, better than the expected 0.5%, and much better than the decline of 1.1% for February; the U.S. April ISM manufacturing index was 54.8 points, outperforming the expected 53.0 points, and also higher than 54.4 points in March. In the last two weeks, the U.S. data were not so likable, therefore, these better-than-expected economic data provided relatively large kinetic energy to the U.S. stocks.
On Tuesday, the majority of European markets were closed due to ” International Labour Day “, only the U.K. stock market opened. FTSE 100 index gained 1.30%, or 74 points, to close at 5,812 points. The British government announced that the April manufacturing PMI dropped from 51.9 in March to 50.5, recording a new low since the beginning of this year, and also weaker than the average consensus estimate of 51.5.
A portion of the Asia-Pacific stock markets closed on Tuesday, the Nikkei 225 index closed closed down 1.78%, the Hong Kong Hang Seng Index rose 1.60%, the Australian stock market rose 0.75%. The Reserve Bank of Australia cut interest rates by 50 basis points to 3.75% on Tuesday, which is less than the average consensus expectation of 25 basis points.
Also read: Nikkei 225 index hit a new low Tuesday.