Investing.com - U.S. stocks traded sharply higher Tuesday, completing the biggest rally in the last month, as the International Monetary Fund increased its global growth forecast and gains in Spanish bonds counteracted declines in factory production and housing starts.
At the close of U.S. trade, the Dow Jones Industrial Average added 1.50%, the S&P 500 gained 1.55%, while the Nasdaq Composite surged 1.82%.
Sparking the risk on trade, the debt crisis eased after an auction of Spanish short-term government bonds saw the country raise the full targeted amount of EUR3 billion, but at sharply higher yields.
Despite the positive signal, worries persisted amid uncertainty over whether Spain’s government can meet deficit reduction targets.
Adding to the bullish sentiment, data indicated that German economic sentiment improved unexpectedly in April, rising for the fifth consecutive month.
The ZEW Centre for Economic Research reported that its index of German economic sentiment increased to 23.4 in April from the previous month’s reading of 22.3. Analysts had expected the index to decline to 20.0.
Meanwhile in the U.S., government data indicated industrial production was unexpectedly flat for the second consecutive month in March, missing analyst’s expectations for a 0.3% increase.
Additional government data showed that the number of building permits issued in the U.S. surprisingly increased in March, rising to the highest level since September 2008, while housing starts dropped significantly, painting a mixed picture of the U.S. housing sector.
The number of building permits issued last month climbed 4.5% to a seasonally adjusted 0.747 million, confounding expectations for a modest decline of 0.7% to 0.710 million.
However, U.S. housing starts fell to the lowest level since October, dropping 5.8% to a seasonally adjusted 0.654 million from a revised 0.694 million units in February. Economists had forecast housing starts to rise 1.0% in March to 0.705 million units.
In other equity bullish news, the International Monetary Fund increased its global growth forecast from 3.3% to 3.5% jump starting the risk on equity trading.
Greece also helped the bullish sentiment as Prime Minister, Lucas Papademos stated that the government is close to completing its plans to restructure the struggling countries banks.
Apple reversed its multi day slide by advancing 4.9% as bargain hunters snapped up shares of the world’s most valuable technology company.
Coca-Cola climbed 2.4% after reporting first quarter earnings that exceeded expectations.
After the closing bell, Intel beat estimates with earnings of USD0.56 on revenue of USD12.9 billion.
In bearish news, investment bank king pin, Goldman Sachs gave back 0.8% after announcing a 23% decline in first quarter profits.
At the close of European trade, the EURO STOXX 50 gained 2.86%, France's CAC 40 advanced 2.72%, while Germany’s DAX soared 2.65%. Meanwhile, in the U.K. the FTSE 100 gained 1.78%.
Traders are anticipating the Canadian monetary policy report, U.K.’s MPC meeting minutes, and claimant count change on Wednesday.
At the close of U.S. trade, the Dow Jones Industrial Average added 1.50%, the S&P 500 gained 1.55%, while the Nasdaq Composite surged 1.82%.
Sparking the risk on trade, the debt crisis eased after an auction of Spanish short-term government bonds saw the country raise the full targeted amount of EUR3 billion, but at sharply higher yields.
Despite the positive signal, worries persisted amid uncertainty over whether Spain’s government can meet deficit reduction targets.
Adding to the bullish sentiment, data indicated that German economic sentiment improved unexpectedly in April, rising for the fifth consecutive month.
The ZEW Centre for Economic Research reported that its index of German economic sentiment increased to 23.4 in April from the previous month’s reading of 22.3. Analysts had expected the index to decline to 20.0.
Meanwhile in the U.S., government data indicated industrial production was unexpectedly flat for the second consecutive month in March, missing analyst’s expectations for a 0.3% increase.
Additional government data showed that the number of building permits issued in the U.S. surprisingly increased in March, rising to the highest level since September 2008, while housing starts dropped significantly, painting a mixed picture of the U.S. housing sector.
The number of building permits issued last month climbed 4.5% to a seasonally adjusted 0.747 million, confounding expectations for a modest decline of 0.7% to 0.710 million.
However, U.S. housing starts fell to the lowest level since October, dropping 5.8% to a seasonally adjusted 0.654 million from a revised 0.694 million units in February. Economists had forecast housing starts to rise 1.0% in March to 0.705 million units.
In other equity bullish news, the International Monetary Fund increased its global growth forecast from 3.3% to 3.5% jump starting the risk on equity trading.
Greece also helped the bullish sentiment as Prime Minister, Lucas Papademos stated that the government is close to completing its plans to restructure the struggling countries banks.
Apple reversed its multi day slide by advancing 4.9% as bargain hunters snapped up shares of the world’s most valuable technology company.
Coca-Cola climbed 2.4% after reporting first quarter earnings that exceeded expectations.
After the closing bell, Intel beat estimates with earnings of USD0.56 on revenue of USD12.9 billion.
In bearish news, investment bank king pin, Goldman Sachs gave back 0.8% after announcing a 23% decline in first quarter profits.
At the close of European trade, the EURO STOXX 50 gained 2.86%, France's CAC 40 advanced 2.72%, while Germany’s DAX soared 2.65%. Meanwhile, in the U.K. the FTSE 100 gained 1.78%.
Traders are anticipating the Canadian monetary policy report, U.K.’s MPC meeting minutes, and claimant count change on Wednesday.