FXstreet.com (Córdoba) - A rise in retail sales and a commitment in Asia to hold stimulus packages boosted stocks worldwide. The S&P500 ended above 1,100 for the first time in 13-months. The Dow Jones rose 1.33% to 10,407. Gold trades near historic highs at 1,139 and crude oil soared 3.34%. Dollar is consolidating losses across the board and after falling to 15-month low against a basket of currencies.
Stocks rallied worldwide together with commodities on hopes about the economic recovery. Equities posted fresh year highs at Wall Street and main stocks indexes consolidated above key levels. Also treasuries rallied to the highest level in months.
James Hyerczyk, analyst at ForexHound.com, comments on the rally in Treasuries: Federal Reserve Chairman Bernanke said late this morning that the Fed is likely to keep interest rates exceptionally low for an extended period. These three words helped December Treasury Bonds surge to the upside. Early support and upward movement was triggered by a revision in U.S. retail sales in September.
Dollar weakness continues
Greenback is consolidating losses across the board. EUR/USD trades below 1.5000 after the Euro was rejected from levels above, but the Dollar is still under pressure. GBP/USD holds above 1.6810. The Dollar managed to get back above 89.00 against the Yen after plunging to 88.79 posting a fresh one-month low. Currencies tied to commodities are posting important gains against the Dollar.