The bull is back with force in the US economy with US stocks ending at their highest level on Monday, cheering up investors across the globe for the first time since June 2008 when the D-days of economic depression began dragging global stock markets to their lowest levels. Bankers’ meeting news stimulated the housing gains on the first day of the week, giving a major push to the economy.
In Pal Nolte’s view, who is a MD at Dearborn Partners, the economic recovery may happen at a slow pace and the growth may not be robust; however, the underlining fact is that the economy is growing and the markets are bullish after a long period of haul. Blues of the world’s longest recession seem to be over and the stocks are set to shine again.
The Nasdaq Composite index marked the sweetest profits with stocks rising high; Nasdaq was up by 1.7% on Monday. After closing at highest levels on May 13, the Dow Jones industrial average was up by 1.4% and ended at 10,753.62, while the S&P 500 index was led by 2% hike in financials with 1.5% growth to 1,142.71.
NBER (The National Bureau of Economic Research) report highlights:
The US stocks reported better-than-expected profits in the current quarter with home building (Lennar Corp.) forecast turning positive.
Builder sentiment was high; however, NBER recommends builders to remain cautious.
The double-dip recession odds are to end soon but there are chances of another slowdown in the future.
Investors can breathe deeper on the good news and wait for the right time as far as equity investments are concerned.
Commodity –Currency Update:
Gold settled on Monday after giving a record-breaking performance for three consecutive quarters. Crude oil prices touched another high, rising above $ 76 a barrel. However, the dollar was low against both the Euro and the Yen.
Global markets advanced on the back of the positive stocks. Asian markets were upbeat as the key benchmark indexes across Asia grew by 0.40%, while stock exchanges at London, Europe and Australian edged higher taking cues from the improved stock futures in the Unites States of America.
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