European Economic Data Might Have Been Solid But Investors Are Still Nervous

The European single currency gained against the U.S. dollar Wednesday after private sector data showed the region's economy capped its best quarter in at least six years, adding to investor bets that interest rates are set to rise from their record lows as the recovery finds its feet.

The IHS Markit Composite PMI survey of economic activity for the month of June was marked at 56.3, a modest decline from the 56.8 tally recorded in May but firmly higher than the flash estimate of 55.7. Activity in the services sector, Markit said, slipped to 55.4 from 56.3, but was still ahead of the original estimate of 54.7 and well ahead of the 50 mark that separates economic growth from contraction.

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