Global markets began the new trading week with a solid rally after data showed growth in the world’s key manufacturing regions.
In the US, the S&P500 snapped a four session losing streak after data revealed New York-area manufacturing rebounded in December after sliding in November.
The eurozone manufacturing index also indicated increased activity among European businesses in the final month of the year.
Whilst investors remain cautious ahead of a possible stimulus reduction at this week’s Fed meeting, the latest manufacturing numbers out of China, the US and Europe eased concerns of a slowdown in global growth.
The Dow soared 130 points (+0.8%) to 15885, the S&P500 added 12 points (+0.7%) to 1787 and the Nasdaq put on 29 points (+0.7%) to 4030.
There were gains in the major commodities, with gold scoring its second win in a row amid bets that, although the Fed is likely to cut stimulus, the ECB may opt to ease monetary policy further.
Elsewhere, oil found strength from reports of unrest in North Africa’s key oil producer, Libya.
The US dollar was mixed against other currencies as traders weighed a recent batch of positive economic data against uncertainty surrounding the Fed’s tapering plans.
In economic news, the CB Leading Index is due out at 10:00am, AEDT. That is followed by December’s RBA meeting minutes and new motor vehicle sales data, both due for release at 11:30am, AEDT.