Global stocks rose last December 23 as a reflection of the further strengthening U.S. economy amid the lying down of trading activity due to the anticipated Christmas and New Year celebration.
Investors’ confidence on the U.S. economy was boosted last December 22, as the number of unemployed people in the U.S. suddenly went down from 4000 last week to 364,000. According to reports, this is the lowest level since April 2008. This favorable disposition of the investors was successfully maintained by a consumer confidence survey from the University of Michigan before the European stocks were closed.
This report only manifests that the U.S. economy, the world’s biggest, has already rebounded from its down times previously this year and may even get stronger than expected as the fourth quarter of the year comes to its end.
Adrian Foster, a stock market analyst at Rabobank International, said that the said figure, together with the claims attached to it, is a proof that the financial disturbance that occurred last month of July did not really affect the real condition of the U.S. economy.
Furthermore, investors have also been cheered last December 22 as Italian Premier Mario Monti won the confidence of the Senate. This news indicates the parliamentary approval of the $39 billion package of tax increases and pension changes of the government.
These increase in tax and modification in pension packages aim to save the country from a probable financial disaster and also serve as a coping mechanism as alarming concerns in the markets say that Italy will have a hard time to compensate its huge debts, amounting to $2.5 trillion.
Italian PM Monti’s success in having the approval for its country’s austerity package and the continuous growth displayed by the U.S. economy are the “catalysts for the markets drive at present”, shared Jordan Lambert, a trader at Spreadex.
The FTSE 100 index of leading British shares in Europe increased by 0.7% at 5,494. Germany’s DAX, on the other hand, gained 0.4% to 5876 while France’s CAC-40 was up by 1.1% at 3105.
The Euro was also stable as it trades with a 0.1% increase at $ 1.3067.
In the U.S., Dow futures acquired a 0.3% increase at 12,137 while the larger Standard and Poor’s futures were up by .04% at 1,254.
U.S. durable good order figures fell for two consecutive months. However, it is expected to have an increase in orders by 2.2% at the end of the month.
Trading volumes are constantly slowing down as a number of investors take a break over the Christmas and New Year. Also, most markets will be closed on Monday in observance of Christmas.