Market wrap: a surprise surge in US consumer confidence sparked a rally on Wall St overnight as investors bet that the upbeat data foreshadows better economic news later this week.
The major stock indexes put on 2.4% (Dow) - 3.5% (Nasdaq) after consumer confidence recorded one of the biggest improvements in the history of the survey to reach an eight-month high. The bounce in sentiment raises hopes that this week's US jobless, durable goods and home sales numbers will mark a turning point in the recession.
Crude oil reversed early losses on the news, adding 1.3% to end at a session high of $62.45. Oil miners added more than 2% to last week's big gains. Also strongly ahead were banks (+5.3%), REITs (6.3%), telecoms (4.2%) and transport companies (4.4%).
Gold fell off a cliff at one point during trade but recovered most of its losses. It recently traded down 0.5% at $953.70. Most base metals squeezed out small gains. Copper rallied 1.1% and nickel surged nearly 5% to its highest close since last year.
Futures traders expect another strong day on our market after yesterday's Rio Tinto-inspired rally. The SPI rose 72 points to 3849.
