Global markets rallied overnight with green ink lighting up leaderboards on both sides of the pond.
In Europe the UK’s FTSE 100 added 57 points (+1%) to settle at 5686, whilst the French CAC (+1.8%) and German DAX (+1.6%) were even stronger.
Stateside, the Dow Jones put on 103 points (+0.8%) to settle at 12909, whilst the S&P (+0.7%) and NASDAQ (+1.1%) enjoyed similar gains.
Investors pushed US stocks sharply higher, erasing all of July’s losses, as investors reacted to strong corporate earnings and continued hopes for central-bank intervention.
The broad market gains were supported by economic data, which showed home construction rising 6.9% last month from May to an annual rate of 760,000, better than expectations for a 5.2% monthly gain and the highest in nearly four years.
However, building permits for June fell 3.7% to an annualized level of 755,000, lower than Wall Street expectations.
The release of the Fed’s “beige book” of economic conditions around the country reported weaker manufacturing and consumer spending in June, with “modest to moderate” growth over the past month.
The US dollar weakened against currencies of commodity-exporting nations including Australia and Canada as investors sought higher-yielding assets and equities advanced.
Oil advanced for a sixth day, exceeding $90 a barrel for the first time since May, as U.S. housing starts increased more than forecast and gasoline inventories fell.
Crude for August delivery increased 65 cents, (+0.7%), to settle at $89.87 a barrel on the NYMEX.
The price ranged from $88.59 to $90.04, the highest intraday level since May 30. Prices are down 9.1% this year.
Today’s session will bring us data in the form of the NAD quarterly business confidence reading, 11:30am, AEST.
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