Global markets strengthened overnight amid speculation that the Federal Reserve will maintain its current stimulus measures.
European stocks were little changed as U.S. housing starts for May missed estimates amid concern the Federal Reserve will signal stimulus cuts at its policy meeting.
The Stoxx 600 lost less than 0.1% to settle at 293 at the close of trading. In London, the FTSE 100 gained 44 points (+0.7%) to close at 6374 while the German DAX added 14 points (+0.2) to finish trading at 8230.
U.S. stocks rose for a second session, pushing the S&P 500 to its highest level in June, as investors awaited the outcome of a Federal Reserve policy meeting for clues to the central bank’s plan for stimulus.
The S&P 500 increased by 13 points (+0.8%) to 1652, extending its two-session rally to 1.5%. The Dow Jones gained 138 points (+0.9%) to settle at 15318.
Crude oil climbed to a nine-month high as the Syrian conflict bolstered concern that the flow of supplies from the Middle East may be disrupted and on signs that economic growth is accelerating.
Crude oil for July delivery increased 67 cents to settle at $98.44 a barrel on the New York Mercantile Exchange. Gold futures fell to a three-week low on speculation about the Fed’s next move.
Gold futures for August delivery declined 1.2% to settle at $1366.90 an ounce on the Comex in New York. Today’s session will bring us the monthly CB Leading Index, at 10:00 am, followed by the Melbourne Institute Leading Index, at 10:30 am.