Tuesday, December 11, 2012
U.S. stocks rallied on a combination of a better than expected German business confidence survey, the Pavlovian response to more quantitative easing to be announced tomorrow (even though the market suffered a two month correction immediately after QE infinity was announced), and hopes that no news was good news on the fiscal cliff issue. The S&P 500 added 0.65% while the NASDAQ gained 1.2%.
- The Census Bureau reported that the trade deficit widened to $42.2 billion in October.
- A separate report showed that wholesale inventories rose 0.6% in October, better than forecasts.
Oil added 23 cents to $85.79 a barrel, while gold fell 0.3% to $1,709.60. Silver dropped 1.1% to $33.02.
German shares gained 1.0%, British shares 0.1%, and French shares 1.1%.
- The ZEW economic-expectations index, a gauge of German investor sentiment, rose to 6.9 in December, a sharp bounce from the minus-15.7 figure in the previous month. It was the first time the index has been in positive territory since May.
China fell 0.4% while Japan dropped 0.1%