US equity markets closed higher for the session, erasing the 2011 decline in the S&P 500 amid a handful of positive economic data points. Durable goods orders and new home sales for the prior month surprised to the upside. Consumer spending came in lower, yet news that Congress approved extensions of the payroll tax cut and unemployment benefits seemed to bolster momentum.
In terms of sectors, all finished the session roundly higher, with Discretionary shares leading. In a pre-Christmas session volumes remained low, down 40 percent vs. 20 days average.
Asian stocks fell for the first time in three days after the Bank of Japan said risks to the economy have increased. Hong Kong and Australia are closed for trading today. South Korea’s benchmark Kospi stock index dropped as much as 2.3 percent after an apparent incorrect order was placed and amid unsubstantiated rumours concerning the health of the new leader of North Korea and its relations with China, La Sung Chae, an official at the market trading analysis team of Korea Exchange, said by telephone today.
Europe opened higher, extending its year end rally, with no European sovereign bond auctions for the next two weeks which could help stocks. On the macro agenda, the Chicago Purchasing Managers Index and pending home sales on Thursday will be the main macro figures. This morning the German press reports that the Government may revisit its forecast for 1 economic growth in 2012 and will present a lower figure in mid-January, the news was denied saying that no decision has been taken yet.
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