The Australian equity market is set for a positive start Tuesday after US stocks jumped overnight as investors speculate that the European leaders are close to a solid solution to stem Europe's sovereign debt crisis.
The Dow climbed 272.38 points to close at 11043.86, in choppy trading conditions following last week's largest drop since October 2008. The S&P500 (see above chart) index gained 26.52 points to finish near its highs of 1162.95 after reports that the European Central Bank official's endorsement of a more aggressive bailout plan and another official's remark that they can't rule out an interest-rate cut.
EURJPY bounced off ten decade lows of 101.97 as the uncertainty whether Greece will get another round of funding to avoid default. At time of writing this report it was sitting at 103.30.
GBPUSD g rose overnight after the release of US data showed that New Home Sales fell less than expected to a seasonally adjusted annual rate.
Gold has continued to trade south to lows of 1530.00 overnight capping the biggest three session slump since 1983 as investors sell the once safe haven asset due to increased margin requirements and to cover losses in other assets.
WTI oil traded up from overnight lows of 77.08 to highs of 81.59 after investors speculate that the ECB may alleviate the regions sovereign debt crisis boosting demand for fuel as the economy grows.
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