Energy stocks lead a market gain as oil price climbs

The Shanghai Composite Index in mainland China added 0.5 percent to 3,668.45 and Australia’s S&P/ASX 200 rose 0.5 percent to 5,141.80. Germany’s markets were closed and many other major markets had half-day sessions.

The S&P 500 added 25.32 points, or 1.24 percent, to 2,064.29.

BONDS, CURRENCIES: U.S. government bond prices fell. The top six gainers on the S&P 500 were in the energy and materials sectors, each rising more than 10%.

The S&P 500 index showed 13 new 52-week highs and two new lows, while the Nasdaq recorded 46 new highs and 52 new lows.

“There is a bit of a Santa Claus rally here”.

United States stock markets will have a shortened session on Thursday and stay closed on Friday for Christmas. Trading volumes are expected to remain thin through the holiday period. Oil prices rose for a third day, bouncing back from lows hit earlier in the week, which helped lift the battered energy sector. “And also a lot of people that sold these assets (earlier in the year) are buying toward the end of the year because of the low prices”, Wong said.

Gold futures on the COMEX division of the New York Mercantile Exchange fell as positive economic data gave strength to the U.S. dollar. Trading in NY will resume on Monday.

However, non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, fell last month as a stronger dollar and spending cuts dragged. Crude for February delivery jumped USD1.36 to USD37.50 a barrel amid the release of a report unexpectedly showing a sharp drop in crude oil inventories.

The Nasdaq is up 309.88 points, or 6.5 percent.

Sources at three large Chinese commodity funds said they have positioned themselves for a short-term uptick in metals prices despite a poor longer-term outlook.

AZJ – AURIZON – down 58.0 cents, or 11.74 per cent, $4.36: Aurizon shares are under pressure after the company lowered its half year earnings guidance and outlined an up to $240 million writedown. Automaker Toyota is up 0.1 percent. Earlier in the day Nike shares had traded as high as US$136.39 after the company posted second-quarter profit that beat expectations.

SGH – SLATER AND GORDON – down 6.5 cents, or 6.63 per cent, at 91.5 cents: Law firm Maurice Blackburn is opening registrations to pursue a class action against rival Slater and Gordon.