Stocks were torn between the contrasting performances of the energy sector, supported by the rebound of oil, and the financial and health sectors at the end of last week.
The indices, which began the session slightly down, gradually strengthened until later in the day when they consolidated at the end of the session. In economic data sales of new homes increased 2.9% in May, during which time the average price reached a record according to the US Department of Commerce. However in contrast growth of the private sector in the United States slowed down in June.
Oil prices finished slightly up Friday, managing to recover a little at the end of a week of falls. As a result, the index of energy stocks in the S & P 500 recovered with a modest gain.
Foreign Exchange Update
In the foreign exchange market, the euro fell slightly against the dollar in early European trading on Monday, with traders opting for caution at the start of a week of busy schedule of economic indicators in the United States.
The Euro gained some ground against the Japanese Yen, at 124.91 yen for one euro – climbing to its highest level in three and a half weeks. The US Dollar also gained against the Japanese Yen.
At the beginning of last week, the dollar had slightly increased, reaching its highest level in three weeks against the euro, following comments of the Fed for continued monetary tightening by the US central bank. The rise in US interest rates makes the US Dollar more remunerative and therefore more attractive to investors.
For those who wish to transfer money there was still reasons to be cheerful, as exchange rates look set to benefit those who wish to invest or send money to Europe. The European area still looks uncertain, and it’s not clear on how the single currency will hold up over the summer months.