Optimism conditional on many factors (ISFM) (26-01-2011)

World stocks were gaining today after the optimism generated by US President Obama's State of the Union address vowing to create jobs and spur growth, while the easing tensions over Europe's debt crisis also helped to raise sentiment.

Earlier in Asia, investors were still keeping watch on China at the possibility of more aggressive steps coming soon, in an attempt o cool the country’s galloping economy and curb rising inflation. Among other markets the Nikkei in Japan was slightly lower but most other markets in the area ended higher.

In Europe, markets responded favorably to another successful bond auction by Spain, which eased concerns that the country might stumble on funding, while demand for the European bailout facility's first round of fundraising was high. As a result the euro's was able to maintain the level above two-month highs, to $1.3706, although according to analysts, that the 17-nation common currency is unlikely to be able to rise much further.

On Wall Street, U.S. stock futures were pointing higher after the US President’s call for corporate tax cuts and a freeze on some spending. Investors were also eyeing a raft of corporate earnings as well as the Federal Reserve’s latest pronouncements on monetary policy.

Source: ISFM