(As of 7:15 am PST)
Markets opened firmly higher
for the second consecutive day as investors held on to positions over night in
an encouraging sign for market participants. Yesterday’s close of +620 points
on the Dow, marked the largest single day percentage gain in 4 years. The rally
which began at the open really picked up steam in the final hour of trade
unlike the previous day which saw the markets swing to significant losses late
in the session. Today’s rally is being fueled by a surprise revision to US GDP
growth in the second quarter. According to a report released from the Commerce
Department early this morning, the US economy grew at a 3.7% clip in the second
quarter, much faster than the initial estimate of 2.3%. Stronger than expected
business investment and consumer spending influenced the upward revision. In
global news, Asian markets finished higher across the board with China’s
Shanghai index finishing up 5.3%, with most of that gain coming in the final
hour of trade on rumors of more Chinese central bank intervention. The positive
Asian trade carried over into Europe with European indexes soaring on the day.
Safe havens such as gold and the US treasury are down today, while oil prices
are up more than 4% breaking through $40 per barrel. It’s been a remarkable
turnaround since Monday’s opening bell, but we are far from out of the woods.
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