Market Review By TraderXP:
German stocks advanced for a second day, extending a three-week high, as U.S. Speaker HouseJohn Boehner said he was "optimistic" budget talks with President Barack Obama will continue.
Index DAX (DAX) added 0.2 percent to 7,343.41 at the close of trading in Frankfurt, erasing earlier decline. Fairness test has rallied 23 percent from a low this year on 5 June, the European Central Bank has approved an unlimited bond-buying program and the Euro-region finance ministers facilitated the aid to Greece.
Market News
Wall Street turns into another "financial cliff" swing
Stocks rallied on Wednesday after comments from House Speaker John Boehner, the top Republican in Congress on a possible compromise to avoid "financial cliff" appeared on the market around.
S & P 500 rebounded from a 1 percent decline, gaining more than 20 points from its low after Boehner, Republican of Ohio, said he hopes that the budget deal to avoid a large spending cuts and tax increases can be developed. U.S. President Barack Obama added to the good feelings, saying that he hoped to get the deal over the next four weeks.
Anyway, these comments reflect the reality of the negotiations is another story.
"The fiscal cliff dominates the discussion, and short-term, we're a little too optimistic on it fixed right now," said John Manley, chief strategist of capital for Wells Fargo Advantage Funds in New York.
In anticipation of higher dividend tax rates in 2013, the company was shifting or announce special dividend to shareholders.
Costco Wholesale Corp, up 6.3 percent at $ 102.58, a high percentage of winning S & P 500, after it became the latest company to announce a special dividend.
Market movement marked the second day in a row, where the leading law dictated trading activities. On Tuesday, the stock fell on pessimistic comments of the Senate Harry Reid MajorityLeader, a Democrat from Nevada.
The market has been swinging for a few weeks at the headlines from Washington, with circulation in the environment highlight the importance that Wall Street by giving a solution to avoid a series of tax increases and spending cuts that could push the U.S. economy into recession.
Index Dow Jones Industrial Average rose 106.98 points, or 0.83 percent, to 12,985.11 at the close. S & P 500gained 10,99 points, or 0.79 percent, to 1,409.93. Nasdaq Composite added 23.99 points, or 0.81 percent, to close at 2,991.78.
S & P 500 rebounded from the strong support area around 1385, which includes both its 200 - and 14-day moving averages. It closed above 1400 for the third session in four - an optimistic sign for stock bulls.
Knight Capital Group Inc shares jumped 15.2 percent to $ 3.42 on news Getco Holding proposed $ 1.4 billion merger with Knight and Virtu Financial offered to buy Knight, at least $ 1.1 billion.
Clothing retailer Express Inc rose 8.9 percent to $ 14.15 after it forecast strong earnings for the current quarter at a lower cost and easy to understand discounts led to robust Black Friday sales.
S & Pretail index. SPXRT gained 1.4 percent.
Green Mountain Coffee Roasters, rose 27.3 percent to $ 36.86 a day after it forecast quarterly and annual earnings well ahead of analysts expectations.
Almost 6.1 billion shares changed hands on the New York Stock Exchange, NYSE, Nasdaq and MKT, below the daily average this year of about 6.48 billion shares.
On the NYSE, about seven stocks rose for every three that fell, and on the Nasdaq, five issues rose for every three that fell. Reuters.com
Currencies
Ian makes a one-week high, euro firm on U.S. financial expectations
Ian unchanged following week high against the dollar on Thursday, while the euro found support in the form of comments from U.S. politicians have revived hopes for a deal to prevent a sharp tightening of fiscal policy.
"At the moment, the U.S. financial cliff, it seems the dominant theme in the market," said Katsunori Kitakura, deputy director of the market making at Sumitomo Mitsui Trust Bank.
U.S. House Speaker John Boehner, the top Republican in Congress, has expressed optimism that Republicans could make a deal with the White House to prevent a financial crisis, although he reiterated his opposition to higher income tax rates on high workers.
U.S. President Barack Obama said Wednesday he hopes to reach an agreement with Congressbefore Christmas.
Investors fear the planned tax increases and spending cuts to begin early next year, totaling about $ 600 billion could tip economyinto major recession in the world, and then the global economic outlook.
The dollar unchanged against the yen from late U.S. trade on Wednesday at 82.08 yen, then rebounded from a medium, one-week low of 81.68 yen.
Expectations high end of the month the dollar / yen rate helped to support the dollar, which has been in corrective decline after reaching maximum 7-1/2-month 82.84 yen last week.
Hascome yen under pressure in recent weeks due to market speculationabout chances of aggressive monetary easing in Japan after a possible change in government next month.
The main opposition leader, Shinzo Abe, the favorite to become prime minister after the December 16 elections, has called for a radical change in monetary policy, including unlimited mitigation, which caused four percent drop in the yen at the beginning of this month.
The dollar is likely to trade in a 81.00 yen to 83.00 yen range on the eve of elections in Japan, said a trader at a Japanese bank in Singapore.
"The dollar / yencontinuing, to see some short-term players based on desires," the trader said, adding that most of the players in the market, it has had contact with the expected range of this kind at the moment.
The euro traded at $ 1.2953, steady from late U.S. levels and higher low on Wednesday at $ 1.2880, supported by improved risk appetite in relation to revive optimism about the U.S. financial negotiations rock.
Market participants, however, remain concerned about some elements of the final deal to help Greece, agreed eurozone finance ministers and the International Monetary Fund earlier this week, the one looming question is whether Greece can successfully implement debt repayment.
However, a positive technical sign for the euro is bullish hammer candlestick chart that its rebound from the trough on Wednesday produced.
The fall of the 10-year Italian government bond yields to their lowest level since February 2011 on Wednesday was another supporting factor for the euro, as it implies that the investor jitters over the sovereign debt crisis in the euro zone are reduced.
The single currency is facing resistance from the daily Ichimoku cloud top at around $ 1.2994, but could not break open the way for the euro to test a four-week high of $ 1.3010 hit on Tuesday after Greece's international creditors agreed to unblock the funds to help Greece.
Against theyen, euro fluctuated 106.33 yen, flat on the day and not far from a seven-month high 107.135 yen hit on Monday. Reuters.com
