US Market: Wall Street stocks soared to its best gain in 8 wks on Wed after strong factory data in US & China eased deep-running concerns over the state of the global economic recovery. Copper & aluminum advanced more than 2.4%; AUD strengthened against all 16 major currencies after its 2Q GDP growth of 3.3% topped forecasts. Oil powered nearly 3% higher to almost US$74 per barrel.
Markets were driven by short covering as well as technical buying from momentum players & hedge funds. The subdued volumes helped exaggerate gains. The DJIA jumped 255pts to 10,269 while the broader S&P 500 gained 3% to 1,080. Both DJIA & S&P 500 stopped short of their 50-day MAs.
Economically sensitive sectors like industrials & basic materials posted large gains, after data showed the US mfg index expanded for the 13th straight month in Aug, , faster than forecast. The strong US figures followed data from China showing that industrial activity also strengthened last month, easing fears the economy was heading for a sharp slowdown in 2H10.
Traders shrugged off reports that US private sector employment dropped in Aug for the 1st time in 7 months & construction spending showed bigger-than-expected drop. Among shares in focus, computer giant Apple saw its stocks rise by 3% after it unveiled a new generation of iPods.
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