Market wrap: Healthy overnight gains for commodity prices and a modest rise on Wall Street have set up our market for a third straight positive session.
Futures traders expect rises in oil and metals to help launch today's holiday-shortened session in positive territory. The SPI futures index closed 12 points higher at 4752 after weak American economic data undermined the U.S. dollar and brought buyers back to commodities.
The major U.S. share indexes slumped in early trade after a surprise plunge in new home sales, but recovered as the session progressed. The Nasdaq continued to set the pace, rising 0.75% to a 14-month closing high. The S&P 500 gained 0.23% and the Dow was little changed at +0.01%.
Sales of single-family homes in the U.S. fell 11.3% to the lowest annual rate since April. The tumble wiped out most of the gains in the new-home market since the January low. Other economic reports came in slightly below expectations: personal income and consumer spending showed smaller gains than predicted.
The U.S. Dollar Index, a measure of the greenback against a basket of six currencies, was recently down 0.45%. Precious metals miners bounced with the price of gold, rallying 3.21%. Other standout sectors included: airlines +1.46%, tech stocks +1.35%, REITs +1.15%, industrials 1.12% and natural gas companies +1.05%. Financials were notably weak - the S&P Bank Index lost 1.39%.
European markets pushed to 14-month highs. Britains FTSE added 0.82%, Germanys DAX 0.2% and Frances CAC 0.32%.
Crude oil spiked to a three-week high after a bigger-than-expected drop in U.S. inventories as imports declined. However, analysts said demand remained weak. Crude futures were recently trading at $76.47 a barrel, a rise of 2.78%.
Gold rallied off yesterday's seven-week low. The spot price was recently trading at $1,087.60 an ounce, up $4.20 or 0.4%.
Copper led a rally in base metals, boosted by a looming strike in Chile. In London, copper gained 2.24%, aluminium 0.8%, lead 1.26%, nickel 3.32%, tin 0.79% and zinc 3.94%.
TRADING THEMES TODAY
ECONOMIC NEWS: Nothing happening locally but the U.S. squeezes a last slab of data into tonight's holiday-shortened session: November durable goods orders, weekly unemployment claims and natural gas inventories.
EARLY FINISH: The market closes at 2 pm this afternoon (2.10 if you include the auction). Trading is likely to be thin, so there won't be a new afternoon thread.
MERRY XMAS: The very best of the season to all followers of this thread. May Santa fill your stockings with profitable trading ideas for the new year. Have a great Christmas long weekend and we'll see you when the market re-opens next Tuesday.
