In the US, markets finished in the green after House Speaker, John Boehner, said that the Democrats and Republicans had constructive talks and may be open to government revenue increases and spending cuts.
The Dow Jones added 46 points (+0.4%) to settle at 12588 whilst the S&P gained seven points (+0.5%) to settle at 1360. The Nasdaq rose 16 points (+0.6%) to settle at 2853.
In Europe, stocks posted significant losses due to the fiscal cliff and bombings in Israel. UK’s FTSE declined to its lowest since August as reports showed the possibility of an economic contraction. British equities lost 72 points (-1.3%) to settle at 5606.
Germany’s DAX fell 93 points (-1.3%) to settle at 6951 whilst France’s CAC shed 41 points (-1.2%) to settle at 3342.
In the commodity space, crude oil climbed $1.22 to settle at $86.67 a barrel primarily because of the conflict in the Middle East and a decline in US industrial production due to Superstorm Sandy.
Gold climbed slightly to settle at $1714.70 due to the fiscal cliff uncertainty.
In the currency space, the yen fell to its lowest since May against the US dollar due to speculation that the opposing party—in favour of more aggressive monetary policies—will be elected into power.
The euro fell against the US dollar as the region has yet to decide on unlocking bailout funds for Greece. The US dollar gained against most of its peers as investors sought the currency’s safety as they wait on how the fiscal cliff discussions pan out.
There will be no major economic data to be released today.