The London equity benchmark index climbed higher during the last trading session of the week and surged above 7,000 for the first time as risk appetite increased after a fairly volatile week in the markets. The softer US dollar supported the uptrend across global equity and commodity markets as the USD index slid lower towards 98.0 against a basket of currencies.
European equity markets rebounded strongly as the DAX, CAC and IBEX indices rallied between 1.2% and 3.0%. In the US, the Dow Jones index gained almost 200 points (+1.1%) after surging towards 18,200, while the S&P 500 and NASDAQ posted renewed gains and rose nearly 0.9%.
The euro recovered from yesterday’s sharp losses and corrected higher testing a high at 1.0820 against the US dollar. It seems that concerns have been partially eased regarding Greece’s economic stability and prospects as investors were evaluating Greece’s agreement with European leaders to draft a new reform programme in order to secure bailout funds and avoid a possible bankruptcy.
The softer US dollar provided strong support to crude oil and base metal prices in today’s session. WTI front month futures rallied strongly over 4.4% towards $46 per barrel and Brent futures gained above $55 per barrel. Base metal prices posted strong gains with copper surging over 3% above $6,000, while lead and nickel climbed over 2.8%.
Precious metal prices extended gains, with silver rallying over 4% towards $17 and gold gaining towards the level of $1,200/ounce, at the time of writing.