Contracts to purchase previously-owned US homes rose 5.9 per cent in May, matching the two-year high seen in March, fueling optimism that the hitherto housing market is beginning to recover.
Data showing better-than-expected demand for long-lasting US manufactured goods in May also provided support, although worries about slowing global growth offset some of the positive sentiment, traders said.
Nonetheless, the Dow Jones in New York went up,with the Dow Jones eventually closing up 0.7 per cent at 12,627.01. Markets worldwide also responsed to the bullish news for the world’s largest economy. The FTSEurofirst 300 closed up 1.29 per cent, while in London the FTSE broke a four session losing streak to close up 1.4 per cent. The MSCI world equity index rose 0.8 per cent, though was still down nearly 0.5 per cent for the week so far, as investors remain concerned over the Eurozone crisis.
US oil prices briefly returned to above $80 per barrel for the first time in nearly a week.