The European major indices cheered on the lower inflation reading for the second consecutive day. Today France’s preliminary CPI came in lower than expectations. Warm weather and lower energy prices are also a contributing factor to the better tone.
The German DAX had its best day since November 10. France’s CAC its best since November 4.
The final numbers are showing:
- German DAX rose 2.15%
- France’s CAC rose 2.35%
- UK’s FTSE 100 up 0.36%
- Spain’s Ibex +1.89%
- Italy’s FTSE MIB +1.65%
As London/European traders look to exit, the US stock market is trading to new session highs and what has been an up-and-down trading session:
- Dow Industrial Average +202 points or 0.60%. The Dow Industrial Average traded as low as -102.90 point before reversing higher
- S&P index up 40.27 points or 1.05%. The S&P index reached a low of -8.36 points before rebounding
- NASDAQ index of 108 points or 1.04 percent. The NASDAQ index reached a low of -49.34 points before rebounding
For the S&P index a close above 3822 today would give the index a gain during the so-called Santa Claus rally. The last five trading days of the year and the first two trading days of the new year define the Santa Claus. Where traditionally, stocks rise. With the index currently at 3867, it is up 1.18% over that time period. The Dow Industrial Average is up around 1% and the NASDAQ index is up 0.34%.