US Stocks rallied Wednesday after Federal Reserve Chairman Ben Bernanke again pledged to keep interest rates low for the foreseeable future, reassuring investors worried about the outlook for the economy.
The Dow Jones industrial average (INDU) gained 91 points, or 0.9%, according to early tallies, while the S&P 500 index (SPX) rose 11 points, or 1%. The Nasdaq composite (COMP) added 22 points, or 1%.
Stocks posted slim gains in the early going, lost some steam after a worse-than-expected new home sales report and then turned higher again after the Fed chief began speaking. The gains continued throughout the session.
Analyst said "Bernanke said they are going to keep the fed funds rate low, the dollar got hit and people started buying stocks,"
LONDON - Europe's main stock markets closed higher on Wednesday after US Federal Reserve chief Ben Bernanke said the US economy faced a slow but steady recovery that would require ultra-low interest rates.
London's main FTSE 100 index closed 27.83 points higher, by 0.52 per cent, at 5,342.92.
FRANKFURT - The DAX 30 added 11.44 points, or 0.2 per cent, to 5,615.51.
PARIS - The CAC 40 rose 8.62 points, or 0.23 per cent, to 3,715.68.
Crude prices have received a boost after US stock markets rallied, giving investors hope that oil demand will pick up in the second half of the year on an improving economy.
Prices rose even though the Energy Information Administration reported that oil inventories rose by three million barrels last week and that supplies are still well above average for this time of year.
Benchmark crude for April delivery rose US$1.14 to settle at US$80 per barrel on the New York Mercantile Exchange. Australian shares are expected to open higher led by Wall Street and a stronger oil price.
At 0707 AEDT on the Sydney Futures Exchange, the March share price index contract was eight points higher at 4,650. In economic news on Wednesday, the Australian Bureau of Statistics (ABS) releases data on private new capital expenditure in the December quarter, 2009, and expected expenditure through calendar 2010.
The ABS also releases Average Weekly Time Earnings data for the December quarter.
GOLD down $6.00 to US$1,097.20 an ounce SILVER up 5.2c to US$ 15.94 an ounce COPPER up 2c at US$3.236 a pound
Today's Financial Calendar February 25 2010
NZ business confidence, Feb Australia private capital expenditure, Q4 EU business climate indicator, Feb EU consumer confidence, Feb UK business investment, Q4 US durable goods orders, Jan US FHFA house price index, Jan US Treasury 7-year note auction (US$32bn) (ACR) - Interim Results (AIX) - Interim Results (AND) - Interim Results (ANN) - Ex-Div. 13c (AUB) - Interim Results (BKL) - Interim Results (CEU) - Interim Results (CIL) - Ex-Div. 5.5c (CIN) - Ex-Div. 27c (CLH) - Interim Results (CPI) - Interim Results (CTY) - Ex-Div. 5.19c (DOW) - Interim Results (ENV) - Interim Results (EQT) - Interim Results (FKP) - Interim Results (FLT) - Interim Results (FPS) - Ex-Div. 3.75c (GFF) - Interim Result (GPT) - Full Year Results (IAG) - Interim Results (IFL) - Interim Results (IGO) - Interim Results (ILU) - Full Year Results (IMF) - Interim Results (LLC) - Interim Results (LMW) - Ex-Div. 1.5c (MAP) - FY Results (MCR) - Interim Results (ORG) - Interim Results (OZL) - Full Year Results (PAN) - Interim Results (PIH) - Full Year Result (PPT) - Interim Results (QML) - Interim Results (REA) - Interim Results (RHC) - Interim Results (ROC) - Full Year Results (SEV) - Interim Results (SGH) - Interim Results (SHV) - Ex-Div. 10c (SLM) - Interim Results (SLX) - Interim Results (SSM) - Interim Results (TOL) - Interim Results (TTS) - Interim Results (VRL) - Interim Results
It is advisable for a day trader not to allocate more than 3-5% of his equity corpus in day trading. That way, even in a worst case scenario you would not be losing all. This in turn will give you a chance to bounce back and try again in case of any short-term set back.
