Market wrap: US stocks surged overnight as positive signs for the local housing market and yesterday's extraordinary 17% leap on the Indian stock market sparked a bull stampede. The major US stock indexes each added around 3%, with buying accelerating into the close of one of the most bullish nights on Wall St in recent weeks. The S&P 500 recovered more than half of last week's losses.
There was strong buying across most market sectors as oil and key base metals benefitted from the change in mood. Banks rallied 8%, REITs 8.5% and oilers more than 3%.
Crude charged nearly 5% back above $59. Copper reversed course after a two-week retreat. Zinc and lead also gained, while others were near flat. Gold lost ground as market sentiment swung back towards riskier assets, recently trading down 1.5% at $916.
As is so often the case, local futures traders aren't completely convinced by the US action. The SPI added 59 points to 3811 - a positive lead but less than half of the US rally. We may do a bit better than that.
Could be time to grab a few beaten-up stocks if you can get in at a decent price. Some of last month's high-flying miners have pulled back a long way.
PS Poly, all credit to you for picking the significance of the news in India yesterday afternoon. Your grasp of the big picture is truly impressive.
