Global markets collectively rallied overnight on the back of some better-than-expected US economic data. European markets exhibited strong gains due to the US data and reports of expansion in China’s manufacturing sector.
The FTSE rose 79 points (+1.4%) to settle at 5862, whilst the French CAC added 46 points (+1.4%) to settle at 3475 and the DAX added 75 points (+1%), finishing at 7336.
In the US, the Dow Jones added 136 points (1%) to settle at 13233, whilst the broader S&P increased 15 points (1.1%) to settle at 1428, while tech-heavy NASDAQ increased by 43 points (1.4%) to settle at 3020.
US markets were boosted by the latest ADP private jobs numbers which showed companies added 158,000 workers in October – the fastest pace in eight months.
Elsewhere, the ISM manufacturing reading showed that the sector expanded in October, to its highest level in more than four years. In the commodity space, gold prices declined for the first time in three sessions as investors flocked towards the US dollar.
Oil prices rose to a one-week higher due to reports of a decline in crude supplies and optimism in the US. Crude for December delivery rose 85 cents to $87.09 a barrel on the NYMEX, the highest settlement since October 22. Prices are down 12% this year.
In the currency space, the US dollar gained against yen and the euro due to better than expected unemployment data. The British pound gained against the US dollar amidst reports of a raised economic outlook.
The yen weakened due to speculation that the BoJ might ease monetary policy. Today’s session will see the Bureau of Statistics’ release of the producer price index (11:30am, AEDT).