US Stocks extended their gains as investors weighed up signs of improvement in the US economy and the prospects for efforts to stabilize the European banks.
The Dow gained 131.24 points to finish the session near its highs of 10939.95 while the S&P500 index added 20.08 points to close the day at 1144.09.
Encouraging economic data pushed stocks off their lows early in the session. Data released by the Automatic Data Processing showed the economy added 91,000 new private sector jobs in September. This coming Friday the Labour Department will report the monthly nonfarm payrolls number.
The AUDUSD (see above chart) continued to see some buying overnight, trading up from yesterday lows of 0.9486 to as high as 0.9667 as investors demand higher yielding assets
EURUSD had a very choppy overnight session with the USD higher earlier as stocks struggled in the wake of a sharp rebound the prior session. Comments from European Union officials that they supported a recapitalization of banks also helped improve risk sentiment sending the EUR towards its overnight highs of 1.3387.
Gold bounced off lows of 1597 overnight to trade as high as 1647 per ounce before settling at 1641 per ounce as investors are buying the asset as a proxy for fear.
WTI oil surged most in almost five months trading up from overnight lows of 76.99 to finish the session near its highs of 79.68 after the US Energy Department reported an unexpected supply decline and economic data that exceeded analyst's expectations.
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