Bullish investors are looking to extend yesterday’s gains and break the momentum of the bears, who started to make their first real inroads in weeks.
AP: Stock futures are pointing higher early Friday as stocks rise overseas. Investors are reacting to better-than-expected economic data on Thursday that suggested the U.S. economy might be in better shape than some investors had feared.
Oil prices also rose, a possible sign investors expect economic activity will pick up and increase demand. Light, sweet crude rose 79 cents to $72.16 per barrel in electronic trading on the New York Mercantile Exchange.
And the same is true internationally:
Bloomberg: The Dow Jones Stoxx 600 Index of European shares added 1.2 per cent at 12:38 p.m. in London, while Standard & Poor’s 500 Index futures rose 0.6 per cent. The Australian dollar appreciated 1.4 per cent and the South African rand strengthened 1 per cent against the yen, while the Japanese currency weakened 0.6 per cent versus the euro and 0.4 per cent against the U.S. dollar.
European Union leaders said they see the first signs of a “sustainable economic recovery” and ruled out increased spending to halt the worst slump since World War II. Morgan Stanley predicted a 32 per cent rally in stocks of developing nations in the coming year as earnings beat estimates. The MSCI Emerging Markets Index rose for the first time in six days, ending the longest losing streak in five months.
A dynamic to consider is that we’re in the final days of the quarter. Mutual funds have been seeing inflows, but no doubt many have missed the big runup, meaning downturns like the one seen earlier this week are “must-buy” situations, considering all their new cash.