Stock markets are trading high, giving extension to the recent rise. At the present time there is a favorable environment generated by the FED’s statement, which is now enhanced by the reduction of threats posed by a number of factors. In Asian markets, crude oil traded higher, as Saudi Arabia argued that in 2015 the oil prices will recover due to a more dynamic world economy. The recovery of oil spread to other raw materials, thus it’s expected a recover in oil and mining sectors, at least in the short term. In the currency market, the ruble also recovered against the dollar.
Investors will monitor developments in Greece because tomorrow will be held the second vote for the presidential election. During the weekend, prime Minister Antonis Samaras offered to broaden the governing coalition and hold national elections at the end of next year if opposition lawmakers back his choice for president, Stavros Dimas.
The effects of the Fed meeting as well as a strong seasonal component (the last sessions of the year among the most favorable to equity markets) have led Wall Street to consecutive positive sessions. In addition to engaging formed by these two factors, American stocks were led by the oil sector, which reflected the recovery of crude oil during the previous New York session. Although these are the most important variables in the current state of the market, there is a more subtle and less visible factor that is supporting the stock market indices. This factor which is based on increased market exposure, by some hedge funds, hoping to seize the hypothetical Year-End rally.
The Holiday season (Christmas season) presented an increase in sales in major US shopping centers during the last weekend before Christmas. However, the first fifteen days of this month the Christmas sales were up 20.3% over the same period of 2013, remaining below the estimated 4.20%, calculated by the National Retailers Association.