Current Futures: Dow +57.00, S&P +8.80, NASDAQ +8.75
Overnight markets and U.S. futures advanced after CIT Group managed to avoid bankruptcy, aided by an emergency loan.
European markets are trading up by approximately 1.5% after CIT, a large U.S. financial group managed to secure $3bn in an emergency loan to avoid bankruptcy. If CIT would have been forced to fill for Chapter 11, it would have been the 4th biggest U.S. bankruptcy in history. However, TheLFB-Forex.com Trade Team noted that the bank is not out of the woods yet, since rumors surfaced that around $10 billion of bonds are expected to mature over the coming year, which still may not be enough to operate long-term.
The news that the bank managed to avoid bankruptcy had a strong effect on the currency and commodity markets. Gold advanced as much as $14 dollar, having one of the best intra-day performances overnight from the last few weeks. Moreover, the precious metal managed to break above the $942.00 swing area, and the 50-day moving average. At the same time, crude oil surged $1.50 during the overnight session on Monday, the fourth consecutive day in which oil heads higher.
Overnight, the U.K. FTSE gained 64.49 points (1.47%) to 4,453.24, while the German Dax added 75.24 points (1.51%) to 5,053.64
Crude oil for August delivery was recently trading at $65.80 per barrel, up by $1.50.
Gold for August delivery was recently trading higher by $13.90 to $952.90.