Market Buzz: Indices rally on US gains

AFP Photo / Mario Tama
Russian markets are expected to open higher Tuesday on positive news from the US, though Moody’s downgrade of France’s credit rating is likely to cap gains.

Russian stocks closed in positive territory Monday over optimism about the US economy. The MICEX added 1.1% and the RTS gained 1.75%.

European stock markets rallied Monday amid signs that top US politicians made some progress in negotiations to avert the country’s so-called ‘fiscal cliff.’ The Stoxx Europe 600 added 2.2%. The German DAX 30 closed 2.5% higher and the French CAC 40 index added 2.9%, led by the banking and resources sectors.

US stocks closed in the black Monday on improved housing data and increasing confidence that a budget deal would be reached. The Dow Jones added 1.7% with all of its 30 components rising. The S&P 500 climbed 2% supported by the consumer sector and the Nasdaq gained 2.2%.

Asian stocks rose Tuesday amid gains in the energy sector and renewed optimism that the US will avoid the fiscal cliff. Hong Kong’s Hang Seng added 0.8%, Australia’s S&P/ASX 200 and South Korea’s Kospi each rose 0.6%. Japan’s Nikkei added 0.1% in the wake of losses in the tech sector. China’s Shanghai Composite bucked the trend, losing 0.3%.