A 4 year high GDP reading from the US meant little to the markets on Friday, the number – much-heralded by Donald Trump – failing to significantly move the needle as the week wrapped up.
Coming in at 4.1% at the annualised rate, America’s second quarter growth figure was actually a smidge below the forecast 4.2%. Not that it matters too much; it’s still the best reading since the 5.2% posted in Q3 2014.
And yet, there was no reaction market-wise. The Dow Jones opened around 0.1% higher, tickling 25550, while the dollar shed 0.1% against both the euro and the pound. Perhaps investors doubt the sustainability of such a performance, alongside the fact that there are still 2 more readings to come, with those revisions having a tendency to be fairly chunky.
Elsewhere, the European indices maintained the growth that has basically been in place since the bell rang. The DAX jumped 0.4% to hit a near 6 week peak, while the CAC crossed 5500 despite a disappointing French GDP figure. As for the FTSE, it climbed 40-odd points to reclaim 7700, returning to the level it abandoned on Wednesday thanks to the recovery in its commodity stocks, alongside the post-update gains of Reckitt Benckiser (LON:RB) BT Group (LON:BT) and Pearson (LON:PSON).
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