NEW YORK: Global equity markets fell and the euro slumped to a two-month low on Friday as weak economic data from Europe and China weighed on prices, but Wall Street stocks rebounded on news of surprisingly strong US manufacturing and consumer sentiment.
Government bonds rallied and the dollar rose in safe-haven buying as concerns about imminent US spending cuts and the post-election political stalemate in Rome remained major headwinds for assets considered more risky.
Growth in US manufacturing, which rose at its fastest pace in over a year and a half in February, offset some jitters. The Institute for Supply Management said its index of national factory activity rose to 54.2 from 53.1 in January, topping economists' forecasts of a pullback to 52.5.
While economic data from Europe and China was disappointing, there are clear signs of economic recovery in the United States and some evidence that Japan is beginning to turn around, a potential swing factor in 2013, said Andrew Milligan, head of global strategy at Standard Life Investments in Edinburgh.
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