Wall Street increased by 80 point on Thursday as economic data reported was better than expected. Jobless claims were increased lower than expected. Markets likes to rally when jobless claims fall, because it signal an improving conditions in the labor market. If jobless claims rise, this could be a sign of a weak labor market and markets could fall.
Factory orders also declined less than expected. Which can be read as an small improvement.
Europe, as it is lately common, also had some to do with the gains, as the ECB President Mario Draghi commented that the bank was ready to buy the bonds from countries such as Spain without severe punishing.
Another factor in today’s rally was the fact that the Fed announced that it is prepared to continue with the monetary stimulus if necessary. The Fed doesn’t seem to consider that the continuous monetary stimulus has negative effect in the economy and that the small improvement, recently made, is purely organic.
European market didn’t perform well. But the common currency pushed higher after Draghi reinforced the idea of preserving the Euro. Oil also claim back some of the value lost in previous section. Crude oil when close to the $92 mark. The rebound was after Turkish parliament approved military action in response to Syria’s deadly shelling of a Turkish town. Investor see such move as an increases in the zone destabilization, which could have serious consequence to the oil industry is the conflict spread.