Wall Street soars, oil jumps to over $68 per barrel, on expanding recovery optimism

Wall Street soars on recovery hopes

2009-06-02 04:44:12

NEW YORK, June 1 (Xinhua) --

Wall Street rose strongly and settled at multi-month highs Monday, as upbeat data from both overseas and the U.S. boosted sentiment that the worst of the global recession was past.

The U.S. Commerce Department posted that consumers cut spending 0.1 percent in April. Economists were expecting a 0.2 percent reduction. But incomes has jumped 0.5 percent, which surprised economists who had forecast a 0.2 percent decline and alleviated concerns on declining consumer spending.

Another report from the Commerce Department showed construction spending in the United States rose 0.8 percent in April. The unexpected gains marked the second straight month of increase in spending on construction projects.

Meanwhile, the Institute of Supply Management on U.S. manufacturing showed the contract of the sector slowed in May with the index climbing up to 42.8, beating expectations.

Moreover, Manufacturing in China expanding for a third month in May also added to the recovery hopes. Oil climbed to a seven-month high and other commodities also posted gain. Therefore, shares of energy companies and basic material stocks substantially increased.

Discretionary stocks and commodity stocks pushed Wall Street sharply higher despite General Motors Corp.'s filing for bankruptcy protection.

Dow Jones announced Monday networking company Cisco Systems and insurance giant Travelers Companies will replace General Motors and Citigroup in the Dow Jones industrials index, effective on June 8. Cisco and Travelers advanced on the news.

The Dow Jones rose 221.11, or 2.60 percent, to 8,721.44. Broader indexes also moved higher. The Standard & Poor's 500 index rose 23.73, or 2.58 percent, to 942.87 and the Nasdaq rose 54.35, or 3.06 percent, to 1,828.68.

Oil jumps 3.4% on expanding recovery optimism

2009-06-02 03:36:29

NEW YORK, June 1 (Xinhua) --

Crude futures jumped 3.4 percent on Monday as investors' recovery optimism was further encouraged by positive industrial data.

Light, sweet crude for July delivery rose 2.27 U.S. dollars, or3.4 percent, to settle at 68.58 dollars a barrel on the New York Mercantile Exchange, recording its sixth consecutive gains.

The latest data showed U.S. manufacturing shrank at a slower-than-expected rate in May, while China's Purchasing Manager's Index hold above 50, the level indicating expansion, for a third month. All these were translated into the idea that the recession in industrial sector was easing.

Meanwhile, dollar continued to fall against the euro and a basket of major currencies, which also helped push up commodities prices including crude futures.

In London, Brent crude rose 2.34 dollars to 67.86 dollars a barrel on the ICE Futures Exchange.

Editor: Yan

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