USD/JPY reverses sharply, Stocks Present a Lackluster Session

Yesterday’s stock session was a volatile one, as investors concentrated on the Dubai situation and economic data. Chicago PMI grabbed investor’s attention as the number rose to a 15 month high, showing investors that the Chicago region had expanded even further during the month of November. The index rose from 54.2% in October to a whopping 56.1%. One must note that a reading above 50% indicates expansion in the manufacturing sector.

Even though the major indices lost their steam throughout the session, they quickly snapped back towards the final hour, as fresh news came out regarding the Dubai situation. According to Bloomberg news, Dubai world is now engaging in restructuring its financial debt with banks, in order to prevent a major downfall. Furthermore, the debt is now expected to reach only $26 billion, compared to rumors of $60 billion.

On the AMEX, the sectors traded mixed with the Financials soaring higher. The major impact came from banks, as they managed to rebound from the previous session’s fall. The S&P500 finished the session with a gain of 0.77%, while the Nasdaq closed with a 0.29% gain.

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