Oil jumped more than 3% to a 11-week high above USD 79 a barrel

Oil jumped more than 3% to a 11-week high above USD 79 a barrel

US stocks logged their best day in two weeks as a strong batch of earnings reports revived optimism about the economic recovery. Positive economic data provided further boost to the markets.

In economic data existing-home US sales gave the market an extra boost. Sales fell 5.1% in June after a 2.2-percent drop in May but that was much less than the 8.1-percent decline expected.

In the day’s other economic news, jobless claims climbed 37,000 last week, though continuing claims fell 223,000. And leading indicators fell 0.2% last month, also less than expected, following a 0.4-percent increase in May.

The dollar slid against the euro as strong euro zone economic data and US corporate earnings rekindled hopes for the world economy and whetted investor appetite for risk.

Oil jumped more than 3% to a 11-week high above USD 79 a barrel as a potential tropical storm threatened energy installations in the gulf of Mexico and strong earnings boosted investor sentiment.

Copper surges to 2-month highs on better than expected US existing home sales. Several other industrial metals also touched multi-week highs, nickel gained over 5%.

Gold climbed higher close to 1,200 dollars an ounce, as strong US corporate earnings fueled a cross-asset rally, and
lingering sovereign credit risk should provide underlying support to the metal.

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