Mon, 07 Feb 2011 16:46:00 +0100

US stocks begin the week strong; USD easing off 2011 lows

FXstreet.com (Barcelona) - Equities listed on Wall Street are beginning the week on a strong note, as deal activity lifts overall market sentiment. Within the first hour the DOW is up 0.60%, while the NASDAQ and S&P post gains of 0.69% and 0.71% respectively.

Risk appetite is markedly improved today, as tensions in Egypt wane slightly amid negotiations between government officials and the opposition parties. What´s more, the private sector is supplying confidence as a slew of deal activity as well as strong earnings have investors on the prowl for buying opportunities. Both the financial and energy sectors are performing particularly well early on, with the SPDR Fund up some 1.5% within the first hour.

In the currencies market, the USD is easing off recent 2011 minimums against its principle rivals in Europe. The EUR/USD for example has dropped back to nearly 1.3500 today where it seems to find support while the GBP/USD tests underneath 1.6100.