Banks, Commods Lift Euro Stocks to 10-Mo Hi

Posted by admin as shares and stocks

EurAsian markets hit highs on lite volume as recovery hopes abound. Post-peak however, some profit-taking ensued but I’d caution against reading anything too important into any of this because of the end of vacation season and resultant thin trade….. Overnite US screentrade higher but not fully reflective of overseas jubillance with DOW futures indicating about +30 points a/o 04:40 CDT..

This week also includes Treasury auctions of over 100byn in 2, 5 & 7 year notes of Tuesday, Wednesday and thursday – expect some crowding as a result – net effect will be clearer when we see the tail on Tuesday’s event..

Excerpted overnite market coverage below:
Published: Monday, 24 Aug 2009 4:45 AM ET By: Reuters

European shares rose in early trade on Monday, hitting their highest level in more than 10 months, with banks and commodity stocks gaining as investors become more confident about the prospects of a global recovery.

The pan-European FTSEurofirst 300 index of top shares was up 0.9 percent at 975.49 points, having hit a 10-month high of 977.93 points earlier. The index is up around 50 percent since reaching a lifetime low in early March and is up about 17 percent for the year.

“There are no specific stories out there, there is no good news and no bad news. Asian markets were ok overnight and the outlook for the U.S. looks reasonable so there is not reason for Europe to take the top off,” said Howard Wheeldon, strategist at BGC Partners.

TOKYO, Aug 24 (Reuters) – Japan’s Nikkei average jumped 3.4 percent in thin trade on Monday, boosted by hopes for a global economic recovery that sent U.S. shares climbing, with Canon Inc (7751.T) and other exporters leading the benchmark higher.

HONG KONG, Aug 24 (Reuters) – Hong Kong stocks surged 1.67 percent on Monday, tracking strength on mainland and overseas stocks markets, with refiners and Chinese finance stocks rallying after Sinopec (0386.HK) and China Construction Bank (0939.HK) reported strong earnings.