Asian Markets are set to start the trading day higher after US stocks extended the gains from last week as optimism over Europe's debt crisis ending buoyed investors sentiment. However US stocks fell in afternoon trade after reports surfaced that S&P would put all 17 euro zone nations on a warning for a possible downgrade.
The Dow Jones Industrial Average finished 78.41 points higher, or 0.65%, at 12097.80, but was well of the early morning highs. The S&P500 gained 12.80 points, or 1.03%, to 1257.08, while the Nasdaq gained 28.83 points or 1.1%.
Stocks had rallied earlier after France and Germany's leaders said they had completed an agreement on a plan to help resolve the euro zone debt crisis. But sold off in afternoon trade after two officials familiar with the S&P decisions Germany and France may be stripped of their AAA credit ratings as the debt crisis prompts all 17 euro nations to be put on review for possible downgrade.
The EURUSD erased gains against the dollar and yen after reports Standard & Poor's put all 17 euro nations on watch for a credit downgrade. The euro was little changed at $1.3386 in afternoon trade after gaining as much as 0.7%.
WTI Oil was little changed, reversing an earlier gain as reports of the possible S&P downgrade hit the market. Crude for January delivery climbed 3 cents to $100.99 a barrel on the New York Mercantile Exchange.
Gold fell Monday on technical selling after it failed to rise above a key chart resistance, breaking ranks with equities and other riskier assets. U.S. gold futures fell $16.80 to settle at $1,734.50 an ounce.
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