May 26, 2013
German data, US fiscal hope buoy global shares
Global shares rose to an almost two-month high today after German investor sentiment improved sharply in December and as the pace of talks in Washington to avoid the "fiscal cliff" quickened.
The Dow Jones industrial average gained 108.19 points, or 0.82 percent, to 13,278.07. The Standard & Poor's 500 Index rose 12.66 points, or 0.89 percent, to 1,431.21. The Nasdaq Composite Index added 42.15 points, or 1.41 percent, to 3,029.11.
European shares rose today, with a key index scaling fresh 18-month highs thanks to signs of improvement in the German economy and traditional year-end flows into equities.
Sectors dependent on solid economic growth - such as autos , construction and basic resources - outperformed after the ZEW indicator pointed to a sharp improvement in German investor morale this month.
The upbeat news from Germany - seen as the strong spot in Europe - fed into broader seasonal optimism in equity markets, which have posted December gains in 12 of the last 15 years.
The pan-European FTSEurofirst 300 closed up 0.4 percent at 1,138.85 points, its highest finish since mid-2011 and taking its gains for the past three weeks to 7 percent.