Market update: Stock markets try to look past Cyprus but euro slides and safe havens muddle through

Positive economic data releases in the US helped stock markets look past the gyrations of the Cyprus bailout deal with the Dow Jones reaching another record level to close at 14,559.65 (up 0.8%) while the S&P 500 flirted with near all-time highs (also rising 0.8%). Data releases revealed the latest single family house prices figure rising at the fastest annual rate since 2006, while durable goods orders rose above expectations in February; instilling optimism on the economic recovery.

Asian markets gained confidence from the positive trading session in the US with major bourses closing up. While Hong Kong shares received a boost from positive earnings in China (up 0.7%) Australian shares advanced the most (up 0.9%) with financials and miners in the lead. Stocks are firmer in Europe this morning but Cyprus waves resonate. At the time of writing the FTSE Eurofirst 300 had risen 0.1% while the FTSE 100 index was flat. The euro was hovering near four-month lows versus the US dollar. The dollar index, which tends to attract safe haven demand, was up 0.2%, as were US Treasury and bund prices. However, gold and Brent crude oil were both down slightly.