or already reached a bottom!
Those positive data had managed to overshadow the effect of the weakening earnings which was seen since the beginning of the year, where dividends had reached to extreme lows due to the protracted Credit Crisis that created all this instability.
Indices advanced, Dow Jones industrial average inclined 0.48% or 38.47 points reaching to 8116.03 levels, S&P 500 added 0.56% or 4.62 points reaching 836.57 levels, along with NASDAQ inching higher 0.82% or 12.17 points reaching 1489.46 levels.
Alongside Barack Obama yesterday said that his administration will use different methods in order to revive back growth in the United States, where his attention will be headed towards consumers and restoring their confidence in order to snatch the world's leading economy from a prolonged recession and job terminations.
Markets are waiting for the US GDP reading which will be released later this week, expectations indicates that growth in the world leading economy fell 5.5% in the fourth quarter as consumers stopped spending money as their jobs where threatened after the prolonged Credit Crisis crippled the world's economic demand resulting in curbing the levels of production by manufacturers.
In the prior year the unemployment levels surged in the United States, a total of 2.59 million jobs were terminations in 12 months, leaving those millions without jobs; now the new administration is trying to restore back those jobs which would eventually spread back some tranquility in markets. The problem that the unemployment rates did really augment in the United States and now the European Continent is facing job terminations as well, where later this week the euro area unemployment rate will be released inclining to 7.9% in December from the previous 7.8%.
Optimism was widely seen in the open Asian markets, where Nikkei inclined 4.93% or 378.93 points reaching 8061.07 levels, where investors' hopes are all hanged on governments where expectations they are about to support the tumbling companies by buying stake in those companies.
The Bank of Japan minutes stated that the bank will start interfering to pressure other commercial banks just to ease down the borrowing costs in order to open the path for other companies across Japan to borrow money in order to keep them functioning.
Interventions by Central Banks across the world would be the only solution for tranquility to spread back, total failure is taking place and every attempt taken earlier had failed but now if central banks along with governments work hard to restructure financial markets place them back on track then a recovery will be seen by the end of the year.
We will start our fundamentals for the day with the German IFO reading; this survey which is taken on a monthly basis is given to firms across Germany, where they are asked about their trust in the economy in the upcoming period.
Due to the gloomy data which have been released in Germany from exports plus contracting growth alongside with the endless turbulence which is taking place confidence fell deeply in January and expected at the lowest in 26 years.
Markets believes the IFO Business Climate eased in January to 81.0 levels from the previous 82.6, also the current Assessment had fallen to 85.0 from the previous 88.8 levels, but expectations might incline to 77.5 from the previous 76.8. But still their might be a slight possibility that confidence will incline especially after the German government had approved to fiscal plans just to prevent more downturns in their economy.
Moving to North America, markets are waiting for the US Consumer Confidence, where the median estimate clarifies that confidence might recover slightly to 39.0 levels from the previous 38.0, but still hovering around low levels which were seen in December.
So my dear reader let's just see whether today's fundamentals will change anything in the outlook especially after we saw yesterday how rising existing home sales had wiped some fears.