On 23 December, 2015 – Global markets rose on strong gains in the energy and materials sectors

European markets advanced as investors favoured beaten down commodity producers.
United States
US stocks closed higher for a third straight session Wednesday led by outsize gains in the energy and materials sectors. The S&P 500 rose 1.2%, and turned positive for the year. The gains were broad-based with more than 90% of the stocks in the index finishing higher, while all 10 main sectors closed in positive territory. A jump in oil prices lifted energy companies, with all 40 names on the S&P 500 energy sector finishing higher, while six of them posted double-digit gains. The Dow Jones Industrial Average gained 1.1%, marking a ninth straight day of triple-digit moves, while the Nasdaq Composite also advanced 0.9%.
Shares of Freeport-McMoRan and Southwestern Energy Company surged, and were the leading gainers on the S&P 500. Shares in biotechnology company Celgene advanced after it said that it reached a settlement in a long-running patent dispute over its flagship blood-cancer drug Revlimid. Adamas Pharmaceuticals also surged after the drugmaker released positive trial results for its Parkinson’s drug. Conversely, shares in Micron Technology slid as the memory-chip maker issued a weak outlook. Bed Bath & Beyond also declined as the retailer lowered its guidance for the latest quarter.
Investors also welcomed economic reports that pointed to a slow but steady improvement in consumer spending. Consumer spending rose 0.3% in November as expected. Orders for durable goods were flat last month following a 2.9% increase in October, slightly better than expected. The number would have been sharply negative if it weren’t for a big increase in orders from the Pentagon. The consumer sentiment index rose to 92.6 in December from 91.3. New home sales increased in November to a seasonally adjusted annual rate of 490,000, the Commerce Department said Wednesday. That was the highest in three months.
Europe
European stocks jumped to a more than two-week high, as investors picked up battered shares of commodity producers before trading wraps up for the Christmas break. The Stoxx Europe 600 bounced 2.7%, led by gains in the oil and gas and basic materials sectors. Gains in commodity shares also lifted the UK’s FTSE 100 index, which rose 2.6%. Germany’s DAX 30 finished higher by 2.3%, France’s CAC 40 rose 2.3% and Spain’s IBEX 35 advanced 2.4%.
In the mining sector, shares in Anglo American, Glencore and Sweden’s Boliden surged. Steel producer ArcelorMittal also rallied after the US Commerce Department made a preliminary recommendation to tax corrosion-resistant steel imports from China at a rate of 256%. European energy stocks also advanced as US crude oil rallied 4%. As a result, shares in British oil producer Tullow Oil, Spain’s Repsol and Norway’s Statoil rose. Meanwhile, AstraZeneca’s shares rose after the company received approval from the US Food and Drug Administration for its drug Zurampic for combination use in treating patients with gout. Conversely, shares in Panmure Gordon & Co. plummeted as the stockbroker said it will swing to a loss in its current financial year.
On the economic front, French consumer spending dropped 1.1% in November, with households cutting back in nearly all areas following the Paris attacks. Separately, French statistics agency Insee said the country’s public debt fell in the third quarter.
Asia Pacific
A rally in oil is bringing a long-awaited, year-end rally to Asian markets Thursday. Australian shares jumped 1.3% in a shortened Christmas Eve session, while Korea’s KOSPI was up 0.3%. Japan’s Nikkei rose 0.3%, after Japanese markets were closed on Wednesday for the Emperor’s birthday.
On Thursday, Japanese Prime Minister Shinzo Abe’s cabinet approved a record fiscal 2016 budget that counts on higher growth and tax revenue to achieve his aim of reviving the economy and reining in public debt. Minutes of the Bank of Japan’s November rate review released earlier in the session showed that many policymakers complained of slow wage and capital expenditure growth, but were optimistic that companies will start to boost spending once emerging economies improve.
In other news, China’s central bank said it would extend the yuan’s trading hours in the mainland market starting next month. The move was much anticipated, and is likely to increase the currency’s global appeal.
Global Stock Markets

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
The US will release Initial Unemployment Claims (week ending prior Saturday).
*Note — all releases are listed in local time.