NEW YORK - US stocks posted a broad rally on the back of a stronger financial sector.
Banking stocks surged ahead of a busy week of economic and corporate earnings reports, after analyst Meredith Whitney upgraded her rating on Goldman Sachs.
She also said during a television interview the hard-hit Bank of America Corp was inexpensive given the assets on its books.
The Dow Jones Industrial Average surged 185.16 points, or 2.27 per cent, to 8,331.68.
The tech-heavy Nasdaq added 37.18 points, or 2.12 per cent, to 1,793.21 and the broad Standard & Poor’s 500 index advanced 21.92 points, or 2.49 per cent, to a close of 901.05.
LONDON - European stocks soared, spurred on by the financial sector, as investors awaited quarterly earnings reports from government-assisted US banks that could signal the economy is on the road to recovery.
The London FTSE 100 index rose 74.96 points, or 1.82 per cent, to close at 4,202.13 points.
FRANKFURT - The Dax surged surged 146.03 points, or 3.19 per cent, to 4,722.34.
PARIS - The CAC 40 added 68.98 points, or 2.31 per cent, to finish at 3,052.08.
TOKYO - The Nikkei suffered its eighth consecutive loss after the ruling Liberal Democratic Party lost elections in Tokyo on Sunday, piling pressure on Prime Minister Taro Aso. His election bureau chief said Monday he was set to call a snap poll next month, leading to fears of political upheaval.
The benchmark Nikkei-225 index dropped 236.95 points, or 2.55 per cent, to 9,050.33.
HONG KONG - The financial sector was the day’s biggest loser as investors took profits ahead of earnings reports.
The Hang Seng Index closed down 453.79 points, or 2.56 per cent, at 17,254.63.
WELLINGTON - The New Zealand share market got off to a quiet start to a week that is expected to be lacklustre.
The benchmark NZSX-50 index closed down 1.393 points, or 0.051 per cent, at 2,736.889.
SYDNEY - The Australian sharemarket is expected to open stronger following significant gains on Wall Street on a surge in financial stocks ahead of the US reporting season.
At 0730 AEST on the Sydney Futures Exchange, the September share price index contract was 58 points higher at 3,761.
In economic news on Tuesday, National Australia Bank releases its monthly business survey for June.
On Monday, the Australian share market closed moderately weaker on falls in resource and financial stocks.
The benchmark S&P/ASX200 index was down 56.6 points, or 1.49 per cent, at 3737.5 points, while the broader All Ordinaries index had fallen 52.6 points, or 1.39 per cent, to 3738 points.
NYMEX
Oil prices slipped as the market remained focused on a gloomy economic outlook that could further curb energy demand.
Traders remained concerned about weak energy demand as oil prices traded about 60 per cent below all-time high peaks above $US147 reached on July 11, 2008.
Demand concerns have intensified amid a recent strong increase in US oil product inventories.
New York’s main contract, light sweet crude for delivery in August, slipped 20 cents from Friday’s market close to finish at $US59.69 a barrel.
In London, Brent North Sea crude for delivery in August edged down three cents to settle at $US60.69 a barrel.
COMEX
Prices for gold and other metals rebounded as investors snapped up riskier assets hoping that earnings reports will show an improving economy.
Investors are keeping a close eye on second-quarter corporate earnings results, which pick up pace this week.
Commodities also benefited from a decline in the US dollar against other major currencies as investors found increased appetite for risk. Commodities, which are priced in US dollars, tend to benefit when the greenback falls because it makes them cheaper for foreign investors.
Gold for August delivery gained $10 to settle at $US922.50 an ounce on the New York Mercantile Exchange.
Other precious metals also rose. September silver was up 14 cents to $US12.785 an ounce, while July platinum added $9.70 to $US1,111.10 an ounce.
Among base metals, September copper futures rose 1.15 cents to $US2.223 a pound.
