Global markets strengthened overnight, buoyed by increased confidence at the onset of the earnings season and as political uncertainty in Portugal subsided.
European stocks rose, rebounding from their biggest decline in almost two weeks, amid speculation that economic data will improve as Portugal’s politicians reached an agreement to hold the governing coalition together.
The Stoxx 600 Index added 1.4% to finish at 292 at the close of trading.
In London, the FTSE 100 gained 75 points (+1.2%) to settle at 6450 while the German DAX put on 163 points (+2.1%) to close the trading session at 7969.
U.S. stocks rose, giving the S&P 500 a third straight session of gains, as the start of corporate earnings season fueled increased optimism about growth in the world’s largest economy.
The S&P 500 added nine points (+0.5%) to finish at 1640, the highest since June 18 while the Dow Jones rose by 89 points (+0.6%) to settle at 15225.
Crude oil dropped from a 14-month high after an official said Egypt’s Suez Canal is secure and ship traffic is ‘normal’, even as violence escalated in Cairo.
Crude for August delivery settled at $103.14 a barrel on the New York Mercantile Exchange. Gold futures rose the most in a week in New York on speculation that this year’s slump will spur stronger physical demand.
Gold futures for August delivery rose 1.8% to settle at $1,234.90 on the Comex in New York. National Australia Bank Limited will release its monthly Business Confidence report at 11:30 am today.