(As of 8:15 am PST)
It's a busy start for global equities Monday. US stocks are in full rally mode ignited by hawkish comments from a Fed official regarding the Fed's first rate hike in 9 years and news of a Warren Buffett backed merger with mechanical parts-maker, Precision Castparts. The positive momentum got going late Sunday as news was released that Buffett's Berkshire Hathaway would acquire Precision Castparts for $32 billion, a pricetag valued at a 20% premium to PCP's current valuation. Precision Castparts jumped 20% at Monday's open boosting stocks. Comments made by Federal Reserve Vice Chair Stanley Fischer regarding the Fed's rate hike early Monday are also adding to the upside trade. Fischer remarked in a Bloomberg TV interview that the central bank would likely not raise rates until its inflation target of 2% had been reached, a forecast that put market participants in the buying mood early with the Dow soaring over 200 points, while the S&P500 and Nasdaq are up over 1%. International markets are mixed with China's Shanghai closing out its biggest single day gain in over a month, finishing up 4.9% Monday. European stocks began the day lower, but are turning around after the positive US open. Commodity prices are also in rally mode today with gold up 1%, while oil is up 1.5%. Interest rates are higher sending treasury prices lower as the risk-on trade takes hold in Monday's session.
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