Stocks Rally On Solid US Economic Data | February 17, 2012.
February 17, 2012 Leave a comment
The Australian equity market is pointed to a solid start to the trading day after overnight equities rallied on the back of robust economic news out of the US.
The Dow finished the trading session up 123 points to 12904 while the S&P500 index gained 14.81 points to close at 1358.04
On the economic front US weekly jobless claims fell to the lowest point in four years posting a surprising drop of 13,000 to a seasonally adjusted 348,000, according to the Labor Department. Housing starts gained more than expected, climbing to 1.5 per cent. Meanwhile the Philadelphia Federal Reserve said its business activity index climbed to 10.2 in February.
The euro rallied against the USD after a report that the European central banks will exchange their existing Greek bond holdings for new ones in an effort to help the situation in the debt-ridden nation. The EURUSD (see above chart) traded up from lows of 1.2975 to recent highs of 1.3162.
In a choppy session the AUDUSD traded up from overnight lows of 1.0649 to recent high of 1.0774 after positive domestic employment numbers reported yesterday afternoon.
Gold rebounded off overnight lows of 1705.75 to rally to recent highs of 1730.05 as the USD declined against the euro increasing the demand for the precious metal as an alternative investment.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped above 20.
| INDICES | |
| Last Traded | |
|
SPI 200 future |
4181 |
|
S&P500 Index |
1358.04 |
|
Dow Jones |
12904.08 |
|
FTSE 100 Index |
5885.38 |
|
COMMODITIES |
|
|
Last Traded |
|
|
Gold |
1728.51 |
|
Oil (Nymex) |
102.34 |
|
CURRENCIES |
|
|
Last Traded |
|
|
AUDUSD |
1.0756 |
|
EURUSD |
1.3133 |
|
GBPUSD |
1.5799 |
|
USDJPY |
78.92 |
Source
Bloomberg, Dow Jones News
