US markets 25th Nov 09

US markets posted modest gains, both Dow and S&P 500 closed at new 13-month highs, as positive economic data buoyed recovery hopes and investors’ appetite for risk; CBOE volatility index dropped to a 15-month low of 20.05

The US markets posted modest gains, both Dow and S&P 500 closed at new 13-month highs, as positive economic data buoyed recovery hopes and investors’ appetite for risk. The CBOE volatility index dropped to a 15-month low of 20.05.

The Dow gained 30.69 points, or 0.3%, to 10,464.40. The S&P 500 index added 4.98 points, or 0.5%, to 1,110.63, and the Nasdaq Composite gained 6.87 points, or 0.3%, to 2,176.05.

Driving the gains in the US markets were some encouraging data points. Personal spending rose more than expected last month, and consumer sentiment improved slightly in November.

Jobless claims fell more than expected to 466,000, while continuing claims fell to a multimonth low of 5.42 million. New-home sales rose 6.2% to their highest level in over a year in October. But durable-goods orders unexpectedly dropped.

The dollar slid to a fresh 15-month low against a basket of currencies Wednesday on upbeat US economic data. Dollar index touched a 15-month low of 74.22.

Crude prices rose more than 2% after a government report showed that US fuel demand gained for a second week.

Gold prices hit record highs above 1,190 dollars boosted by a weak dollar, and a report that India may consider buying more bullion from the IMF.

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