After damaging losses on Monday, stocks in the U.S recovered during the last session. The Dow Jones Industrial average climbed 2.39% (to 11,397) while the S&P 500 rallied 2.34% (reaching 1,263.2). There were no clear impulses to move the market like this since no important macroeconomic news were published. Such strong demand for equities cannot be explained as the main result of a better than expected Conference Board Consumer Sentiment report (51.9 against the forecasted 50 points). It seems it was reaction to Monday’s drops. Certainly, news from Merrill Lynch helped. The largest brokerage house in the world secured new capital. Another company in the spotlight was U.S Steel, which gained the most in more than seven years after increasing their projected earnings. The decreasing price of oil was also a “friend” of bulls.
After such a bullish session in the U.S, Asian indices could not do anything else than rally. The Japanese Nikkei 225 surged 1.58% and is slowly closing to the 13,500 level.

Results of American and Asian indices should be a positive impulse for European stocks. All major indices (DAX, CAC40 and Polish WIG20) opened in green. It is hard to predict how the session will end though. Bulls are attacking strongly but much can depend on the ADP employment report from the U.S. Better than expected numbers can push indices even higher.

Adam Narczewski