Wall Street shares rose on Thursday as surprising regional bank earnings gave investors hope the US economy was starting to improve, despite fresh evidence of a deep recession that helped drive gold over $900 an ounce. The euro strengthened more than 1 percent against the dollar yesterday to a one week high, after data showed the eurozone's services and manufacturing sectors managed their best performance in six months in April. The good readings suggested that a severe recession in the eurozone was no longer deepening. That data, coupled with a net quarterly profit at Credit Suisse also unveiled yesterday, resulted in an increase in risk appetite which weakened the dollar. Credit Suisse announced double the anticipated first quarter results.
Better than expected bank earnings helped to increase investors’ appetite for riskier currencies, despite grim data announced in the US yesterday including news that applications for jobless claims had risen and that home sales had also fallen. However, concerns over the US government's "stress tests" on 19 major US banks have resulted in increased uncertainty this morning.
In the eurozone Germany will be releasing their IFO Business Climate results this morning, whilst in the US Durable Goods Orders and New Home Sales will be announced this afternoon.
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