As New York and the rest of the northeast prepared for another wintry assault, markets appreciated the strain on the economy and seemed sympathetic to soft data from the employment and consumer spending sectors. Initial claims for unemployment climbed last week as retail sales trended lower in January in the face of reduced December figures.

Analysts and investors found other reasons to support equities. Many expect that solid data will not be available until at least April. There was investor support for Janet Yellen’s first appearance on The Hill as the new Fed chief indicated continuance of support for the economy.

Yellen’s performance was complimented by House approval of the debt ceiling increase through April 2015, well after the 2014 elections. The House bill is expected to fly through the Senate eliminating the last minute crisis that marked 2013 and took a heavy toll on the electorate and the economy.

Yellen and the debt ceiling assisted the Thursday equity market turnaround after overnight trading weakened amidst concerns in Europe. US equities by noon:

• Dow Jones – up 0.15 percent to 15,98.71
• S&P 500 – up 0.22 percent to 1,819.19
• Nasdaq Composite – up 0.4 percent to 4,218.08

Global Equities Struggle

After six winning days, world shares turned sour on Thursday. Economic uncertainty in Europe was compounded by unsettling political news from Italy when current Prime Minister Enrico Letta resisted leadership efforts by center-left head Matteo Renzi. Italian equities lost 1.1 percent.

But, aside from Europe, Europe’s blue chip sector failed to meet expectations again. Support for equities has been fueled by ongoing statements of support from central banks. Investors were not listening after European blue chip after blue chip data fell by the wayside.

Asia did not receive the shortcomings well. MSCI Asia Pacific shares not including Japan lost 0.7 percent. After posting 4.5 percent gains in 5 prior sessions. In Japan, the Nikkei shed 1.8 percent after strong recent gains.

British Sterling Performing With Strength

As predicted, British sterling is moving solidly forward. Date from the Bank of England (BoE) confirms an upbeat economic outlook with an especially vibrant housing market. Fueled by the creative Help To Buy housing programs, the UK’s approach to housing can only be described as the most aggressive program on the planet.

In the wake of equity weakness, the euro attracted investors as a flight to safety. The euro received a boost when ECB Executive Brad member Benoit Coeure told media there was committee support for lowering rates and charging banks to park cash at the ECB. A decisions is likely at the March meeting of ECB executives.

As Asia goes, so goes the Australia dollar. The AUD slumped 1 percent to $0.8934 against the USD.

• Euro – USD – +0.60 percent – 1.3674
• GBP – USD –  + 0.34 percent – 1.6650  
• USD – Yen –  (- 0.23) percent – 102.28
• USD – CAD – (- 0.26) percent – 1.097
• AUD – USD – (- 0.43 percent) –  0.89850      
• USD – Ruble – 35.1280

Tags: AUD, Bank of England, cad, Dow Jines, ECB, Enrico Letta, Ero, Federal Reserve, GBP, Janet Yellen, Matteo Renzi, MSCI, NASDAQ, Nikkei, Rouble, Ruble, S&P 500, US Commerce Department, US Labor Department, usd

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