Stocks Rally after Strong Housing Numbers & Concerns Over Europe Ease | January 19, 2

Asian Markets are set to start the day higher after U.S. stocks rose, sending the Standard & Poor’s 500 Index to the best start since 1987, after confidence among homebuilders topped forecasts, Goldman Sachs Group Inc. (GS) rallied and concern about Europe eased.

The S&P500 rose 14.37 points, or 1.11%, to close at 1308.04 with the tech sector’s leading the gains. The Dow Jones Industrial Average finished 96.88 points higher, or 0.78%, at 12579.00, while the Nasdaq rose 41.63 points or 1.53%.

Stocks gained as confidence among U.S. homebuilders rose in January to the highest level in more than four years. Equities extended gains as an official told reporters that Greece’s government could forge an agreement with private creditors by the end of this week after talks resumed in Athens today. The International Monetary Fund is proposing to raise its lending capacity by as much as $500 billion to safeguard the economy.

The euro gained for a second day versus the dollar and the yen as the International Monetary Fund proposed raising its lending capacity by as much as $500 billion to protect the global economy amid Europe’s debt turmoil. The euro appreciated 0.9% to $1.2856.

Oil declined in New York as the Obama administration denied a permit for TransCanada Corp. (TRP)’s Keystone XL pipeline, which would have carried crude to U.S. Gulf Coast refineries from Alberta’s oil sands. Crude oil for February delivery fell 12 cents to settle at $100.59 a barrel.

Gold rose on gains in the euro, U.S. equities and optimism that the International Monetary Fund will raise additional funds to help combat Europe’s debt crisis. U.S. gold futures gained $4.30 an ounce to settle at $1,659.90.

Last Traded
SPI 200 future 4222
S&P500 Index 1308.04
Dow Jones 12579.00
FTSE 100 Index 5702.37

Last Traded
Gold 1661.10
Oil (Nymex) 100.90

Last Traded
AUDUSD 1.0433
EURUSD 1.2858
GBPUSD 1.5434
USDJPY 76.76
Bloomberg, Dow Jones News