It was a monster night for global markets last night, with all major indices advancing more than 2% each.
Speculation that governments in the US and Europe will act to help their economies sent stocks surging to their best day this year.
In Europe, the FTSE 100 added 124 points (+2.4%) to settle at 5384, whilst the French CAC (+2.4%) and German DAX (+2.1%) also enjoyed strong gains.
News reports indicated that Germany and European Union officials were considering a plan to lend money from the European bailout fund to help rescue Spain’s hobbled banks.
Stateside, the Dow Jones put on 287 points (+2.4%) to settle at 12415, recording its biggest single-session gain so far this year.
The broader S&P (+2.3%) and tech-heavy NASDAQ (+2.4%) enjoyed similar strong performances.
Atlanta Federal Reserve President Dennis Lockhart said in a speech that weak job growth over the past two months highlighted the “halting and tenuous” recovery.
If the trend continues, “further monetary actions to support the recovery will certainly need to be considered,” he said.
The Aussie dollar soared, moving back towards parity with the greenback. This morning the local unit is buying US$0.9915.
The euro gained the most in almost three months against the dollar as European Central Bank President Mario Draghi said policy makers were “ready to act” after leaving their benchmark rate at a record low.
Oil rose for a third day on speculation that monetary policy makers will act to spur economic growth, boosting fuel demand.
Oil for July delivery climbed 73 cents to settle at $85.02 a barrel on the New York Mercantile Exchange.
Elsewhere in the commodity space, copper put on 0.7% whilst gold eked out a modest 0.2% gain to settle at US$1620 an ounce.
Today’s session will bring us important data in the form of employment change and the unemployment rate, both slated for release at 11:30am, AEST.
Written by: marketpulse Other posts from: marketpulse