S&P500: best monthly rally for 17 years!

Late bull run in the US ; DJIA recovers a 110 point drop in the final hour of trading to close up 1.17%. S&P500 +0.96%, NSDQ +0.82%.

Economic data quite +ve: growth in durable goods orders (+3.4%) and better than expected new home sales.

Busy day for economic data, notably GDP in the USA.

Feeling of growing optimism that government efforts to revive the economy are working.

S&P500 enjoying best monthly rally for 17 years! Financials up +4.6%. The sector has rallied 55% since March 6^th.

Govt debt auctions in the US and the UK were not as successful as hoped, pushing yields slightly higher.

Asia also up: NIKKEI +1.84%, Hang Seng +2.9%.

Crude up at $53.30. Expectations of a recovery in fuel demand on signs that the global economy is stabilizing.

Gold stable @ $936.

Rally in stocks and a gradual return of a risk appetite reflected in currency movements. Investors seeking higher yielding assets. $ and YEN weaker.

€/$ @ 1.3583. VIX @ 42.25. 10-2 yr spread @ 156bps. 5 yrs CMS @ 2.86%. 3 yr CMS @ 2.33%.

Europe timid this morning, quite flat. US futures positive.

 

 

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