Republicans in the US Congress are scheduled to vote on Boehner’s proposal of increasing taxes on citizens with income over US$1 million. Markets were further boosted after statistics showed that US GDP grew 3.1% in the third quarter—higher than the median estimate of 2.8%.
The UK’s FTSE fell three points (-0.1%) to settle at 5958 whilst Germany’s DAX added four points (+0.1%) to settle at 7672. France’s CAC put on two points (+0.1%) to settle at 3667.
In the US, the Dow Jones increased 60 points (+0.5%) to settle at 13312 whilst the S&P climbed eight points (+0.6%) to settle at 1444. The Nasdaq added six points (+0.2%) to settle at 3050.
In the commodity space, crude oil for February delivery increased $0.15 to settle at $90.13 a barrel due to the positive US data. Gold futures for February declined 1.3% to settle at $1645.90 due to speculation that the Fed might not implement further monetary policies given that the latest data showed a greater-than-expected expansion in the economy.
In the currency space, the yen fell against its peers after the BoJ announced that it will increase its asset-purchase program by another JPY10 trillion (US$119 billion) and review its inflation target.
The euro traded higher against the US dollar after data showed that its index of household confidence increased to -26.6 in December compared to the previous month’s -26.9. There is no major local economic data slated for release today.