U.S. stocks reach new highs

Market Watch

Written by Lynn Healy-Goulet
August 17, 2016

A rebound in the price of oil and positive economic developments south of the border gave markets confidence this week pushing major U.S. stock benchmarks to new highs. The announcement Thursday that global oil production will lag demand by as much as a million barrels a day from July through to September suggested improving global growth which emboldened traders. Another positive for the price of crude came from Saudi Arabia later in the day as the world’s largest oil producer said it would meet with other OPEC countries in Algeria next month to try to stabilize the oil market. In U.S. economic news, the number of people filing for unemployment benefits fell last week which continues an improving trend in the labour market while bellwether American retailers reported results that beat expectations. That suggests underlying strength in consumer spending which may be bourne out in U.S. retail sales reported today. Turning to China, exports dropped 4.4% in July yoy which was somewhat worse than expected but better than June’s 4.8% fall.

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