Rising sentiment

Global shares and other riskier assets rose on Tuesday amid hopes of a US budget compromise that will stop a ‘fiscal cliff’ of automatic tax hikes and spending cuts

• The sentiment got strengthened after US President Barack Obama softened his stance, lowering his demand for new tax revenue by $200 billion, and offered to increase taxes starting from incomes of $400,000 rather than $250,000 
   
• Investors hope putting off the $600 billion of ‘fiscal cliff’ cuts and taxes will give momentum to the fragile recovery in the US economy 
   
• Emerging stocks edged towards eight-month highs. Chinese stocks, the largest component of the MSCI emerging stocks index, hit five-month highs, while Japan’s Nikkei hit an 8-1/2 month high 
   
• MSCI’s emerging equity index gained 0.25 per cent on the day 
   
• Turkish stocks hit record highs ahead of expected cuts of at least 25 basis points in key Turkish rates 
   
• Czech stocks hit 10-month highs and Polish stocks hit their highest since August 2011, while Russian stocks hit two-month highs 
   
• London’s FTSE 100, Paris’s CAC-40 and Frankfurt’s DAX climbed between 0.1 and 0.5 per cent in mid-day trade 
   
• Standard & Poor’s 500 Index futures increased 0.3 per cent 
   
• The dollar fell to a two-month low against a basket of key currencies, as the broader market appetite for risk grew

 

GETTING IMPETUS
	Dec 18,  12	1 day chg (%)	YTD Chg ( %)
Americas (Dec 17, 12)
Nasdaq Composite	3,010.60	1.32	15.56
Dow Jones	13,235.39	0.76	8.33
Europe*
DAX	7,627.81	0.30	29.32
CAC 40	3,632.46	-0.16	14.96
FTSE 100	5,926.55	0.24	6.36
Asia
Nifty	5,896.80	0.66	27.52
Sensex	19,364.75	0.63	25.30
Hang Seng	22,494.73	-0.08	22.03
Nikkie 225	9,923.01	0.96	17.36
Jakarta Comp	4,301.44	-0.33	12.54
Kospi	1,993.09	0.51	9.17
Taiwan Taiex	7,643.74	0.16	8.08
Shanghai SE	2,162.46	0.10	-1.68
Brent crude ( $/bbl)*	109.84	0.35	2.10
Gold spot $/Oz*	1,698.10	0.00	8.59
*As on 1700 Hrs IST   Source Bloomberg                 Compiled by BS Research Bureau