- Iranian saber-rattling sends oil up $4.25 to $103.05
- DJ: France not informed of any rating changes by S&P today; watch continues
- ECB rumored buyers of Spanish, Italian and Portuguese debt
- ISM rises to 53.9 in December from 52.7 in November; highest since June
- ECB makes Belgium’s Praet chief economist; first non-German to hold the title
- Pentagon: US to put carrier back in Gulf
- EFSF to sell bonds on Thursday
- Global PMI 50.8 in December from 49.7 in November
- IIF says making progress on Greek debt talks
- FOMC to release Fed funds forecasts to help guide policy; part of new communications strategy
- S&P 500 rises 1.6% to 1277; Milan +1.25%
- US 10-year note rises 7.5 bp to 1.95%; Italy up 2 bp to 6.94%
- WTI up $4.25 to $103.15; gold rises $38 to to $1605
US markets greeted the New Year wearing a pair of rose-colored glasses. Prices of stocks and commodities were bid up early after China reported better-than-expected PMI and the US followed suit. EUR/USD did the same rising to test a tough zone of resistance between 1.3065 and 1.3085, reaching 1.3077 before easing back toward 1.3050 at the close.
Commodity currencies traded strongly, as one would expect. AUD rose to 1.0385, USD/CAD slipped to 1.0072 before bouncing to close near 1.01.
