The U.S. index of leading economic indicators rose by 0.7 percent in June, better than expectations, the Conference Board reported on Monday. It was the third consecutive month that the index increased.
In the ten indicators that make up the leading economic index, seven of them increased in June, the Conference Board said. The index measures direction of economic activity in future three to six months.
A cumulative 3.1 percent growth rate of the leading economic index since March is a strong signal that the recession's end may be near, said analysts of Nomura Research.
Investors also cheered the news that CIT Group, a major lender to small and midsize business in U.S., would be able to avoid bankruptcy. It was reported that the company got 3 billion dollars of emergency financing from bondholders.
CIT Group has over one million small and midsized business customers. The National Retail Federation said bankruptcy of the lender could have severe consequences on the retail industry and the nation's economy.
The euro bought 1.4221 dollars in late New York trading compared with 1.4139 dollars it bought late Friday. The pound rose to 1.6533 dollars from 1.6382 dollars.
The dollar fell to 1.1070 Canadian dollars from 1.1163 Canadian dollars, and fell to 1.0693 Swiss francs from 1.0746 Swiss francs. It fell slightly to 94.23 Japanese yen from 94.24 Japanese yen.
