Investing.com - U.S. shares closed sharply higher Tuesday, as retail sales increased the most in five months and the Federal Reserve stated the economy is improving fuelled risk appetite pushing the Dow to its highest level since 2007.
At the close of U.S. trade, the Dow Jones Industrial Average gained 1.68%, the S&P 500 added 1.81%, while the Nasdaq Composite rocketed 1.88%.
Sparking the equity risk on nature of the session, the Commerce Department said that U.S. retail sales increased by a seasonally adjusted 1.1% last month, climbing the most in five months.
Core retail sales, which exclude automobile sales, rose by 0.9% in February, above expectations for a 0.8% gain.
The Fed made it very clear that it sees a recuperating labor market, as well as an improved economy as a whole, when it announced unchanged interest rates.
These statements and actions reduced expectations of quantitative easing in the foreseeable future.
Fitch Ratings increased Greece’s long term foreign and local currency issuer default ratings to B- with stable outlooks due to the 95% participation rate in the debt swap.
In the euro zone, the ZEW Centre for Economic Research, announced that its index of German economic sentiment advanced to the highest level since June 2010 in March, climbing to 22.3, against expectations for a reading of 10.5, adding to the bullish day.
In other news Tuesday, Spain agreed to demands from euro zone finance ministers that it cut its budget deficit target for this year to 5.3% of gross domestic product instead of its original 5.8% target.
Ammunition maker, Alliant Techsystems gave back 7.8% after being cut to underperform at RBC Capital Markets.
Carmike Cinemas soared 17% after beating fourth quarter revenue estimates.
FactSet Research Systems, the financial data provider, climbed 8.8% upon beating second quarter profit and sales estimates.
At the close of European trade, the EURO STOXX 50 gained 1.66%, France's CAC 40 soared 1.72%, while Germany’s DAX advanced 1.37%. Meanwhile, in the U.K. the FTSE 100 traded up by 1.07%.
Investors are awaiting U.S. import prices and a speech by Fed Chief Ben Bernanke, as well as U.K.’s unemployment rate and the Swiss ZEW index report on economic health Tuesday.
At the close of U.S. trade, the Dow Jones Industrial Average gained 1.68%, the S&P 500 added 1.81%, while the Nasdaq Composite rocketed 1.88%.
Sparking the equity risk on nature of the session, the Commerce Department said that U.S. retail sales increased by a seasonally adjusted 1.1% last month, climbing the most in five months.
Core retail sales, which exclude automobile sales, rose by 0.9% in February, above expectations for a 0.8% gain.
The Fed made it very clear that it sees a recuperating labor market, as well as an improved economy as a whole, when it announced unchanged interest rates.
These statements and actions reduced expectations of quantitative easing in the foreseeable future.
Fitch Ratings increased Greece’s long term foreign and local currency issuer default ratings to B- with stable outlooks due to the 95% participation rate in the debt swap.
In the euro zone, the ZEW Centre for Economic Research, announced that its index of German economic sentiment advanced to the highest level since June 2010 in March, climbing to 22.3, against expectations for a reading of 10.5, adding to the bullish day.
In other news Tuesday, Spain agreed to demands from euro zone finance ministers that it cut its budget deficit target for this year to 5.3% of gross domestic product instead of its original 5.8% target.
Ammunition maker, Alliant Techsystems gave back 7.8% after being cut to underperform at RBC Capital Markets.
Carmike Cinemas soared 17% after beating fourth quarter revenue estimates.
FactSet Research Systems, the financial data provider, climbed 8.8% upon beating second quarter profit and sales estimates.
At the close of European trade, the EURO STOXX 50 gained 1.66%, France's CAC 40 soared 1.72%, while Germany’s DAX advanced 1.37%. Meanwhile, in the U.K. the FTSE 100 traded up by 1.07%.
Investors are awaiting U.S. import prices and a speech by Fed Chief Ben Bernanke, as well as U.K.’s unemployment rate and the Swiss ZEW index report on economic health Tuesday.