Asian Markets are set to open higher after overnight markets rose, snapping a seven-day decline in the Standard & Poor’s 500 Index, after Thanksgiving retail sales climbed to a record amid speculation European leaders will boost efforts to end the debt crisis.
The Dow Jones Industrial Average jumped 291.23 points, or 2.56%, to 11523 with all 30 blue-chip components closing higher. The rally followed a 26-point loss Friday and a weekly fall of 4.8% that marked the worst Thanksgiving-week performance since markets began closing in observance of the holiday in 1942.
U.S. retail sales during the Thanksgiving weekend increased 16 % to $52.4 billion, the National Retail Federation said, citing a survey conducted by BIGresearch. The average shopper spent $398.62, up from $365.34 a year earlier. Consumer spending, which accounts for about 70% of the economy, grew at a 2.3% annual rate in the third quarter, the fastest pace in 2011, the Commerce Department said Nov. 22.
European markets finished with a broad rally after news that euro-zone leaders were negotiating a pact to contain the sovereign-debt crisis. An agreement, including measures to curb excessive debt by making budget discipline legally binding, could persuade the European Central Bank to take more action to halt the selloff in debt markets.
The EURUSD advanced Monday as speculation mounted that policy makers will be able to get a grip on Europe’s debt crisis but the dollar fell as risk appetite revived. The Euro found resistance at 1.34, however was up from 1.3224 on Friday. Prices last traded at 1.3312
WTI Oil climbed as Thanksgiving retail sales advanced to a record in the U.S., a signal of economic growth in the world’s biggest crude-consuming country. Crude oil for January delivery increased $1.44 to $98.21 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 17. Futures touched $100.74 a barrel in intraday trading, the first time since Nov. 18 that they topped $100 a barrel.
Gold rebounded to a one-week high as last week’s selling pressures were replaced with hopes of a stronger effort by euro-zone leaders to stem the spread of the sovereign debt crisis. The most actively traded contract, for December delivery, rose $25.10, or 1.5%, to settle at $1,710.80 a troy ounce on the Comex division of the New York Mercantile Exchange.
INDICES
Last Traded
SPI 200 future 4008
S&P500 Index 1192.55
Dow Jones 11523.00
FTSE 100 Index 5312.76
COMMODITIES
Last Traded
Gold 1716.20
Oil (Nymex) 97.77
CURRENCIES
Last Traded
AUDUSD 0.9898
EURUSD 1.3312
GBPUSD 1.5505
USDJPY 78.00
Source
Bloomberg, Dow Jones News