Wednesday, December 1, 2010

Dow Jones Comment, 01/12/2010

The Dow soars 250 points, or 2.3% to 11256 points amid positive data. The bullish performance was driven by upbeat economic reports, including a strong 93k gain in ADP employment, better than expected auto sales and a resilient November ISM.

The rally gained momentum after Goldman Sachs upgraded their forecasts on US 2011 GDP growth to 2.7% from 1.9% after the Fed’s Beige book revealed economic conditions showed the nation's gradual recovery continued in October and November.

On the other hand, European markets were generally higher as speculation increased that the ECB may signal this week its willingness to step up efforts to curb the spread of the region’s debt crisis and the U.S. would back increasing the size of the EU’s rescue pool through the commitment of more money from the IMF.

Positive expectations of improving key US job data report this Friday and ECB’s effort in curbing the European sovereign debt crisis are envisaged to temper the
geopolitical risks concern in Korean peninsula temporary, provided no further military intrusions happen.

Daily Dow Jones signals a breakout above the overhead resistance will spur further upside.

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