European markets strong in 2013 start as investors cheer US fiscal resolution

FXstreet.com (Barcelona) - The German DAX 30 (+2.22%), the French CAC 40 (+2.26%), the Italian FTSE MIB (+2.98%) and the Spanish IBEX 35 (+3.37%) are trading strong on the first trading day of the year as investors cheer the final decision to avert the "fiscal cliff" in the US, with the House of Representatives approving the new tax cuts bill (172 Democrats and 85 Republicans voted in favor while 16 Democrats and 151 Republicans voted against, 8 abstentions) and President Obama later signing it. This deal is expected to add $4 trillion to the US deficit over the next 10 years.

Fixed income markets are too improving as 2013 starts, with the Spanish sovereign 10-year yielding at March 20 lows, at 5.169%. Markit manufacturing data was released in Europe. The French PMI came in line with prediction, improving 0.1 to 44.6. The Spanish figure eased from 45.3 to 44.6 in December, disappointing consensus of 45.1. In Italy, data beat expectations (45.3), by rising from 45.1 to 46.7. The Greek data eased from 41.8 to 41.4. Germany and the EMU disappointed and fell to 46.0 (from 46.8 - consensus of 46.3) and 46.1 (from 46.2 - consensus of 46.3), respectively.

Futures for the American S&P 500 (+1.58%), Nasdaq 100 (+1.66%) and Dow Jones 30 (+1.16%) are signaling a higher opening ahead of the US Markit and ISM manufacturing PMI. The December CPI inflation report in Germany is due to be published at 13:00 GMT. WTI crude oil rallies +1.30% to $93.00 and Gold rises +0.56% to $1683.