Positive Chinese data increased global stocks to the highest point they have been at in the last eight months on Friday although Europe did not trade much after a gunman’s attack in Nice, France occurred on Thursday. Otherwise, European markets did extremely well. Travel stocks decreased Europe’s main bourses down by half a percent after the attack on Thursday where a man drove through a crowd on Bastille Day killed at least eighty-four people. After seeing all-time highs this week, Wall Street also looked ready to open low with traders preparing for retail sales, consumer confidence, inflation and manufacturing data, and information on corporate earnings.
News that China’s economy increased more than the predicted 6.7 percent during the second quarter as the government increased spending helped strengthen the week’s global rebound in risk assets. MSCI’s 46-country All World stocks index went to its highest point in almost a year as an impressive five percent increase by its upcoming markets component contributed to a 2.7 percent increase on the week. The pound, which was significantly decreased after the United Kingdom decided to leave the European Union during the month of June, was set for a weekly gain of about nine percent against the yen, which is the best it has ever done against the Japanese currency.
It also jumped by 3.7 percent during the week on the dollar at 1.3370 and more than three percent higher against the euro and back to buying 1.20 euro. For the risk adverse holders of the yen, it has been a very tough week all around because of talks with authorities looking into more policy to stimulate the currency. It had dropped about 0.5 percent to 105.81 yen per dollar on the day ahead of United States trading having dropped as low as 106.27 in the course of a day and was going towards a weekly decrease against the greenback of five percent, its biggest since February of 1999.