Favorable Durable Goods Data, Oil Helps Too (28-05-2008)

Wall Street managed to end in positive territory after fluctuating widely during the day as investors were heartened by a drop in the price of oil, which eased inflation concerns, as well as a rise in U.S. home sales, largely unexpected. 

The oil price drop, however, had an adverse effect on Asian stock markets, which declined as energy companies lost ground across the board, while the financial sector was supported by overnight gains on Wall Street and banks logged some gains. 

The U.S. dollar was gained in European trading after the Eurozone reported the worst current account deficit in ten years, while the yen declined as risk appetite advanced.  

European markets extended their gains around 12.00 GMT on Wednesday, recovering after a number of losing sessions on the prospect of consolidation in the insurance sector as well as a strong rally in tech shares. 

Back on Wall Street, markets opened with gains as investors took heart from a smaller than expected drop in durable goods orders and oil prices remained at the same levels

  Source ISFM