Perhaps there should be more public holidays in the US. After yesterday's independence day break, US traders are back at work in optimistic mood, and Wall Street is up nearly 2% initially.
And this rise comes despite disappointing US service sector numbers, which showed a fall to 53.8 compared to a forecast of 55. This means the sector is expanding, but at a slower rate than expected. If investors were in the wrong frame of mind, this would be taken as yet another sign of a slowdown in the country's recovery. Instead they prefer to concentrate on hopes of recovery in China and optimism that global banks will pass the stress tests they are currently undergoing. So the Dow Jones Industrial Average is currently up 1.7% or 165 points, while the FTSE 100 has gained 140.40 points to 4963.93, a near 3% gain.
Miners are still the main gainers in the UK after a rise in base metal prices, while earlier news that Australia had kept its interest rates on hold, rather than cutting, was also taken as a sign that the country is not expecting a sharp downturn necessitating cheaper money.
