Stocks Advance On Hope For Thaw In Washington

 | Oct 15, 2013 02:01AM ET

Stocks headed higher on Monday, as investors remained hopeful that a deal could be reached in Washington.

Stocks continued to advance on Monday, as a number of Senators from both parties expressed optimism that a deal could be reached to end the government shutdown and avoid a sovereign default. Meanwhile, on behalf of “the adults in the room”, Christine Legarde, Managing Director of the International Monetary Fund, spent the day issuing reminders that the global economy could be pushed into recession if the antics in Washington continue past the October 17 debt ceiling deadline.

The Dow Jones Industrial Average (DIA) picked up 64 points to finish Monday’s trading session at 15,301 for a 0.42 percent advance. The S&P 500 (SPY) advanced 0.41 percent to close at 1,710.

The Nasdaq 100 (QQQ) surged 0.69 percent to finish at 3,256. The Russell 2000 (IWM) climbed 0.55 percent to end the day at 1,090.

In other major markets, oil (USO) advanced 0.33 percent to close at $36.87.

On London’s ICE Futures Europe Exchange, December futures for Brent crude oil declined 32 cents (0.29 percent) to $110.10/bbl. (BNO).

December gold futures rose $3.10 (0.24 percent) to $1,271.30 per ounce (GLD).

Transports were parked on Monday, although the Dow Jones Transportation Average (IYT) managed to squeak upward by 0.03 percent.

In Japan, the Tokyo Stock Exchange was closed for holiday (EWJ). Meanwhile, increasing possibilities for a truce in Washington continued to weaken the dollar against the yen. The exchange rate for the yen fell to 98.50 per dollar on Monday. A weaker yen causes Japanese exports to be more competitively priced in foreign markets (FXY).

In China, stocks managed to advance as a result of reports that the nation may play a role in the development of Thailand’s high-speed railroad. China’s consumer price index rose 3.1 percent in September on a year-over-year basis, beating economists’ expectations of a 2.8 percent increase. Despite the unexpectedly high acceleration, inflation remains within the country’s target, although it has now put a limit on quantitative easing efforts. China’s bad news was that the nation’s exports declined 0.3 percent in September. The Shanghai Composite Index advanced 0.43 percent to close at 2,237 (FXI). The Hong Kong Stock Exchange was closed for a holiday (EWH).

As usual, events in the United States were reported as being the controlling influences in the European stock market, even though there was not much movement in the STOXX 50 index. Nevertheless, the region does have its own economic data and not all of it was good on Monday. Eurostat reported that Eurozone Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

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