Markets rose slightly on yesterday in volatile trading as an upbeat US consumer confidence indicator offset worries over Ireland’s decision to hold a referendum on the plan to tie the 17 euro countries closer together. A forecast-busting consumer confidence survey helped Wall Street recover from losses on the open, when investors were spooked by an unexpectedly big 4 per cent monthly drop in US durable goods orders in January.
The Conference Board reported that its main index of consumer confidence rose to a year-high of 70.8 in February, from 61.5 in January and far above markets’ expectations for a far more modest increase to 63. Economists watch the confidence numbers closely because consumer spending accounts for about 70 per cent of US economic activity. The data encouraged investors to look past the news that Ireland will hold a referendum on the plan to strengthen budget discipline within the eurozone.
