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Current Futures: Dow -6.00, S&P -1.30, NASDAQ -1.25
Asian markets advanced tonight, after a new sequence of economic indicators showed that the global recession is easing. Additionally, car manufacturers posted significant gains in the last few trading sessions.
Car manufacturers climbed in Europe and Asia after GM, the second largest carmaker in the world filed for bankruptcy on Monday morning. In the German Dax, BMW, Volkswagen and Daimler grew more than 5% on the fact that the three companies will most likely obtain a large market share from GM. Moreover, 5 out of the 6 companies top gainers in the German Dax were from the car industry on Monday. In the Japanese Nikkei, car-companies continued to advanced, but so far, the gains were relative modest, around 2%. TheLFB-Forex.com Trade Team said that the Japanese markets are pricing for a longer time bankruptcy of GM, something that helped the sector outperform the other industries lately.
During the U.S. session, a release showed that consumer spending and income increased in April, giving investors fresh hopes that consumers may be able to drive the economic recovery. Helped by these reports, the consumer discretionary sector gained almost 5% on Monday. Two different reports showed that the pace of contraction experienced in the manufacturing sector eased in May in the U.K. and in the U.S., after hitting record low reads just a few months back. TheLFB-Forex.com Trade Team commented that this may be interpreted as some further signs that the contraction pace is slowing down in the economy, as manufacturers experience less strains on their business.
Overnight, the Japanese Nikkei added 78.80 points (0.81%) to 9,756.55. The Australian S&P/Asx rose 63.40 points (1.63%) to 3,957.80.
Crude oil for July delivery was recently trading at $67.90 per barrel, lower by $0.60.
Gold for July delivery was recently trading lower by $1.60 to $978.40.
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