Dollar dropped and bonds gained after U.S. recorded tepid economic development and growth and reduced any prospects for interest rate hike in 2016.
The S&P index recorded profits for the fifth consecutive month, whereas oil regained despite a bearish market. It must be noted that the report has been released even as the Bank of Japan decided to retain its original bond purchasing target and policy rates and instead opted to increase the buying of exchange-traded funds.
Bloomberg’s Dollar Spot index dropped 1.3% in New York. As per the Commerce Department, the GDP figures went up by 1.2 % on an annual basis after advancing 0.8 % in the previous quarter. On the other hand, the S&P 500 index went up by 0.2 % to reach 2,173.46. With this the index ended July 2 points below, the high level of 3.6 percent achieved earlier. Even the Dow Jones Industrial Average dropped 0.1% for fifth consecutive time. This was the index’s biggest drop since mid of June as it fell 0.7 % during the entire stretch.
The Stoxx Europe 600 index went up by around 0.7%, which took its increase to 3.6% on a monthly basis. Additionally, the Gold futures advanced even as dollar fell, thereby boosting the metal’s demand in the market.