Stocks Stable Despite Weak Growth In US, Eurozone

Stocks stable despite weak growth in US, eurozone

NEW YORK, (Pakistan Point News - APP - 30th july,2016) - Global stocks proved resilient Friday despite disappointing second-quarter economic growth in Europe and the United States and an underwhelming stimulus package from the Bank of Japan. Official US data estimated growth in the second quarter at an annual rate of 1.2 percent, far below the 2.6 percent expected by analysts. The report showed weak investment by private businesses, offset somewhat by solid household consumption.

For the 19-nation eurozone, the European Union reported growth slowed sharply to a tepid 0.3 percent pace in the second quarter. Some analysts warned the surprise British vote to leave the European Union in June could further crimp growth in the second half of the year. Still, Frankfurt and Paris both ended the day higher, while US stocks finished mostly in the black following strong earnings reports from Amazon and Google parent Alphabet.

US stocks stand near record highs, in part due to easy-money policies enacted by the US Federal Reserve and other central banks. "We're basically at all-time highs, but the market is evaluating whether there is reason to break out another leg higher," said David Levy, portfolio manager at Republic Wealth Advisors. London edged out a small gain as oil prices bounced off three-month lows struck earlier in the day.