The Australian equity market is set for a solid start today after US stocks notched their third consecutive positive session as European policy makers took steps to stop the region's debt crisis.
In a choppy session the Dow closed the session up 183 points at 11123 while the S&P500 rose 20.94 points to finish at 1164.97.
The EURUSD traded up from lows of 1.3248 after ECB President Jean-Claude Trichet attempted to ease some of the pressures on European banks. The ECB said it would resume buying bank bonds to stimulate economic growth in November.
GBPUSD (see above chart) had a volatile overnight session falling from highs of 1.5501 to lows of 1.5273 after the Bank of England held rates at 0.5 per cent only to rally back to 1.5443 after the ECB package.
Gold rose for the second straight day as commodities and equities rallied amid optimism that the European officials were making progress in taming the regions sovereign debt crisis.
WTI oil rallied up from lows of 79.10 to highs of 82.90 capping it biggest two day rally since February after the ECB stimulus package was announced.
The volatility index has dropped for the third consecutive day as positive news continues to come out of the European region. At time of writing this report it was trading at 36.27.
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