Stocks Rally Late on Euro Zone Optimism | December 8, 2011


Asian Markets are set to start the trading day higher after US stocks rose, sending the Dow Jones Industrial Average to the highest level since October, amid optimism that European leaders will announce further efforts to halt the debt crisis at a summit this week.

The Dow Jones Industrial Average finished 46.24 points higher, or 0.38%, at 12196.40, after losing as much as 1.1% earlier in the session. The S&P500 gained 2.54 points, or 0.2%, to 1261.01, while the Nasdaq fell 0.35 points or 0.01%.

Stocks were down earlier in the session as S&P placed the EU’s AAA credit rating on negative watch in addition to some of the Europe biggest banks. This comes after the agency’s recent warning to 15 of 17 euro zone nations.

The EURUSD fluctuated against the dollar, after erasing earlier losses, as optimism increased that European leaders will be able to agree on measures to help solve the region’s debt crisis. The euro was little changed at $1.3405 at 4:02 p.m. in New York after falling as much as 0.4%.

WTI Oil fell for the first time in four days in New York after the U.S. Energy Department reported that crude and fuel inventories climbed as imports surged. Futures dropped 0.8% after the government said crude stockpiles rose 1.34 million barrels to 336.1 million last week and imports reached a 10-week high.

Gold prices rose on low volumes as investors chose to sit on the sidelines ahead of the ECB policy meeting and the European summit at the weekend. January Futures rose $13 to close at $1744.80.

INDICES
Last Traded
SPI 200 future 4321
S&P500 Index 1261.01
Dow Jones 12196.37
FTSE 100 Index 5546.91

COMMODITIES
Last Traded
Gold 1746.40
Oil (Nymex) 100.82

CURRENCIES
Last Traded
AUDUSD 1.0287
EURUSD 1.3410
GBPUSD 1.5709
USDJPY 77.64
Source
Bloomberg, Dow Jones News

Personally I would think that the Eur dollar should be going up in times to come. There are too many speculation spreading which cause alot of volatility.

The EUROSTOXX 50 formed an outside day with 2414 – 2298 the levels to follow in the coming hours. A daily closing above 2414 will support a rally toward 2509!!
The indicators of the daily chart are still well positive and also those of the s/t ones are slowly returning above the line supporting a possible extension of the move up we’re seeing since the low yesterday at 2308. We have already a positive reversal suggesting a s/t target at 2462!
Only a break below this last level will postpone further strength causing a deeper correction with the 200 hours line at 2241 the possible attraction.
I suggest still waiting for a possible extension of the correction toward the 2250 area to go long.

Yeaaaaa… if the amount of bad news out there regarding the euro hasn’t been able to crush the eur/usd… i’m thinking nothing short of a full blown war will do so.

Guess I’m biased to the lonside until around 1.3750ish. At least for the first 24-48 hrs of market open this week.

Jay

EUR/USD has been squeeze for more than 2 weeks… spike is coming soon!