Monday, December 17, 2012
U.S. stocks reversed the selloff from late last week on movement from Speaker Boehner to compromise on tax increases, however modest. At this point, the market is willing to accept just about any type of deal, as long as means the can has been kicked for another day - the details are not as important (for now). The S&P 500 gained 1.2% and the NASDAQ 1.3%.
- House Speaker John Boehner has offered to extend the debt limit for a year in order to reduce the deficit. Over the weekend, Boehner suggested he was open to including higher tax rates on the wealthiest Americans.
In economic news:
- The New York Federal Reserve reported manufacturing conditions in the area worsened in December. The index fell more than expected, to -8.1, from -5.2 in November.
Oil gained 0.5% to $87.20, gold gained 0.1% to $1698.20 and silver fell 0.1% to $32.28.
London's FTSE 100 fell 0.2%, while the CAC 40 in Paris lost 0.1%. The DAX (DAX) in Germany gained 0.1%.
- Seasonally adjusted euro zone exports fell by 1.4% month on month, following a 1.3% drop in September,
Japan gained 0.9% as "easy money" Abe was elected, while China added 0.45%.
- The Liberal Democratic Party won a landslide victory in Japan's general election on Sunday; this led to Shinzo Abe's return to power as Prime Minister of Japan. Expectations are that the new government will introduce aggressive monetary easing.