European shares surged 2.1 percent on Monday, with better-than-expected U.S. housing data boosting optimism about the recovery. The Dow Jones industrial average gained 132.79 points, or 1.29 percent, to end at 10,450.95. The Standard & Poor’s 500 Index gained 14.86 points, or 1.36 percent, to 1,106.24. The Nasdaq Composite Index added 29.97 points, or 1.40 percent, to close at 2,176.01. The benchmark Nikkei fell 1 percent to 9,401.58, its lowest finish since July 17. The broader Topix declined 1.1 percent to 829.22.

In November, the Eurozone economic activity rose at its fastest pace for two years, raising hopes that the economic recovery is underway. The data shows the Eurozone economy made further progress after emerging from its worst ever recession in the third quarter. THE interest rate on US Treasury bills has dropped below zero in a scenario last seen in 1938, leaving investors in the strange position of paying the government for the privilege of lending it money. In October, sales numbers for previously owned homes in the US jumped more than 10 per cent.

Due for release today is the JPY Bank of Japan Monthly Report, CHF UBS Consumption Indicator, EUR German Gross Domestic Product, EUR German Private Consumption, EUR German IFO – Expectations, EUR German IFO – Business Climate, EUR German IFO- Current Assessment.

By Greg Secker

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