Investors were unfazed by the U.S. government's report that the world's biggest economy shrank 2.9 percent in the first quarter, the fastest contraction since the global crisis five years ago.
The downturn, due to a severe winter that closed factories, disrupted shipping and kept Americans away from malls, was seen as temporary, with growth rebounding sharply since spring. Investors may also be betting that it gives policymakers a reason not to raise rates.
"Weak U.S. data released overnight means the Fed will be in no hurry to tighten its policy stance," strategists at
The quarterly U.S. economic data was "undoubtedly a horrible number, (however) we should see a nice snap back in the second quarter; and this is far more important," said
He added, "
In early European trading,
U.S. stocks were poised for a flat open after inching higher the previous day. Dow futures were little changed at 16,770.00 while broader S&P 500 futures slipped 0.1 percent to 1,947.30.
In energy trading, the price of U.S. benchmark crude for August delivery rose
In currencies, the dollar slipped to
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