Although the dollar strengthened today against the European currencies, the equity markets and commodity markets continued to move forward. The Dow Industrial Average closed up for the 8th straight day making a new 52 week high closing at 10,779.
The Euro took it on the chin after a larger than expected trade deficit was reported. European Union statistics agency Eurostat Thursday said the 16 countries that use the euro had a combined deficit in their trade in goods of €8.9 billion ($12.23 billion) in January after a surplus of €4.1 billion in December 2009, a figure that was revised down from the previous estimate of €4.4 billion. The deficit was larger than expected, with economists surveyed having estimated that imports exceeded exports by €4 billion.
The Office for National Statistics said that U.K. public sector net borrowing was £12.4 billion in February, a record for that month but significantly less than the £13.3 billion expected by economists. The figure stood at £8.8 billion in February 2009. The U.K. Treasury said the February numbers mean the government is on track to hit its full-year borrowing forecast of £178 billion.
In the US, the seasonally-adjusted consumer price index was unchanged last month, the Labor Department said Thursday, after increasing an unrevised 0.2% in January. The last time inflation looked so tame was in March 2009, when consumer prices fell by 0.1%. Core consumer prices, which strip out volatile energy and food items and are more closely watched by the Fed, were up by a monthly 0.1% in February. In January, core prices fell by 0.1%. Economists surveyed by Dow Jones Newswires were expecting an increase of 0.1% in both the headline consumer price figure and the core consumer price index number. On an annual basis, which is not adjusted for seasonal factors, consumer prices rose by 2.1% in February. Core consumer prices rose by 1.3% from 12 months ago, the lowest increase since Feb. 2004.
The Philly Fed said its index of regional manufacturing activity rose to 18.9 in March from 17.6 in February, with a positive reading indicating growth in the sector. Economists had been expecting a more modest increase by the index to a reading of 18.0.
The Labor Department said in its weekly report Thursday that initial claims for jobless benefits fell by 5,000 to 457,000 in the week ended Mar. 13. The previous week’s level was left unrevised at 462,000. Total claims lasting more than one week, meanwhile, increased moderately. The decrease in initial claims was just below economists’ expectations. Economists surveyed expected initial claims to decrease by 7,000. The four-week moving average, which aims to smooth volatility in the data, also went down for the week ending Mar. 13. The Labor Department said the four-week moving average decreased by 4,250 to 471,250 from the previous week’s unrevised average of 475,500.