The President’s statement was further augmented when House Speaker, Mr. John Boehner, essentially said that he is optimistic that a compromise can be negotiated.
In Europe, the UK’s FTSE added four points (+0.1%) to settle at 5803 whilst Germany’s DAX rose 11 points (+0.2%) to settle at 7343. France’s CAC gained 13 points (+0.4%) to settle at 3515.
In the US, the Dow Jones increased 107 points (+0.8%) to settle at 12985 whilst the S&P climbed 11 points (+0.8%) to settle at 1410. The Nasdaq gained 24 points (+0.8%) to settle at 2992.
In the commodity space, both oil and gold fell amidst concerns that the US budget discussions might fail to materialize in the given time frame. Crude oil for January delivery fell $0.69 to settle at $86.49 a barrel—a two-week low. Gold for February delivery declined 1.5% to settle at $1718.80 an ounce, its lowest in three weeks.
In the currency space, the Japanese yen traded higher against the US dollar after technical indicators showed that the former currency’s recent decline was excessive.
The euro traded higher than the US dollar amidst speculation that investors will accept Greece’s debt buy-back terms even if the offer is lower than market prices.
The US dollar fell against most of its peers as traders and investors rotated out of safety and into risk. Today will see the release of the HIA New Home Sales (tentative) and Private Capital Expenditures data (11:30am, AEDT).