European stocks rose, extending their highest level since June 2008, after the Bank of England raised its growth forecast for Europe’s third-biggest economy. In London the UK’s FTSE 100 added seven points (+0.1%) to settle at 6694, whilst the German DAX put on 23 points (+0.3%) to close at 8362.
Stateside, stocks rose and pushed benchmark indexes to fresh records, as data showing weakness in manufacturing fuelled bets the Federal Reserve will be in no hurry to scale back stimulus.
U.S. industrial production declined in April by the most in eight months, reflecting broad-based cutbacks in factory output and indicating American manufacturers will provide little support for an economy beset by weaker global markets and federal budget cuts.
Manufacturing in the New York region unexpectedly shrank in May as factories received fewer orders and sales stagnated, a separate report showed.
Data from the Labor Department showed wholesale prices dropped in April by the most in three years, reflecting a decrease in fuel costs that is helping underpin profits.
Gold futures tumbled below $1,400 an ounce, extending the longest slump in almost three months, as the dollar’s rally eroded demand for the metal as an alternative investment. Silver fell to a three-week low.
Gold futures for June delivery fell 2% to settle at $1,396.20 on the Comex in New York, after touching $1,389, the lowest for a most-active contract since April 19.
Crude was little changed as equities gained on speculation of central-bank stimulus measures after economic reports from the U.S. and Europe missed forecasts. Oil for June delivery settled at $94.30 a barrel on the New York Mercantile Exchange, the first advance in five days.
There is no major local economic data due out during today’s session.