The Dow Jones industrial average gained 96.28 points, or 0.96 percent, to end at 10,092.19. The Standard & Poor’s 500 Index added 10.23 points, or 0.94 percent, to 1,097.91. The Nasdaq Composite Index rose 19.52 points, or 0.91 percent, to 2,176.32.The FTSEurofirst 300 index of leading European shares rose 1.7 percent to 1,026.46 points. European shares hit a fresh 12-month closing high on Monday.The benchmark Nikkei rose 111.07 points to 10,347.58. The Topix gained 1 percent to 914.68.

According to a draft of the proposals due to be released this week, the European Commission (EC) plans to drive more trading in derivatives onto exchanges and under the gaze of regulators. Last night US Federal Reserve Chairman Ben Bernanke warned, that Asia’s export-promotion policies and the US’s massive budget deficit could refuel global economic imbalances. According to the International Financial Services London (IFSL) annual report, the US cemented its dominance in financial markets in 2008. The Financial Market Trends Europe vs US report has shown that the US financial markets had increased in size compared to Europe across eight different indicators, for example foreign equity trading, equity market turnover and domestic bonds. According to accountants KPMG, half of all private equity deals are now being completed under distressed conditions.Yesterday, the International Monetary Fund (IMF) warned countries not to scale back stimulus measures to fight the global recession as that could jeopardize a return to weak growth next year.
GBP Public Finance, GBP Public Sector Net Borrowing, GBP M4 Money Supply, CAD Leading Indicators, USD Producer Price Index, USD PPI Ex Food and Energy, USD Housing Starts, USD Building Permits, CAD Bank of Canada Interest Rate Decision.

By Greg Secker