U.S. stock-index futures rose as lawmakers passed a budget bill that prevents the so-called fiscal cliff of automatic spending cuts and tax increases.
Global Stocks:
Hang Seng 23,311.98+655.06 +2.89%
FTSE  6,034.41+136.60 +2.32%
CAC  3,717.83+76.76 +2.11%
DAX 7,768.52+156.13 +2.05%
Stock markets in Japan and China were closed today.
Crude oil $93.77 +2.12%
Gold $1688.30 +0.75%

Bank of America (BAC) added to Conviction Buy List at Evercore.
Facebook (FB) resumed with a Neutral at Cowen & Co.
Facebook (FB), positive comments at BofA/Merrill; resumed Buy rating and $31 target.
Google (GOOG) was reiterated at Perform at Oppenheimer. Target wad lowered to $765 from $715.

European stocks rallied to a 19-month high as U.S. lawmakers passed a budget bill that avoided most scheduled tax increases threatening a recovery in the world’s largest economy. Asian shares advanced.

The U.S. House of Representatives passed the budget legislation just after 11 p.m. in Washington yesterday, breaking a yearlong impasse over how to head off more than $600 billion in tax increases and spending cuts set to start taking effect yesterday. President Barack Obama said he will sign the bill after 257-167 vote. The Senate approved the proposals 89-8 in the first hours of Jan. 1.

The bill will delay by two months automatic spending cuts scheduled to start this month as Republican lawmakers abandoned their effort to add further reductions to the deal. It reinstates tax cuts that expired Dec. 31 on taxable income of individuals up to $400,000 and of married couples of up to $450,000, leaving those top earners with a marginal tax rate of 39.6 percent, up from 35 percent last year.

A gauge of mining shares soared 3.9 percent, leading gains on the Stoxx 600. Rio Tinto rallied 5.4 percent to 3,700 pence, the highest price in 10 months, and Anglo American Plc surged 4.7 percent to 1,983.5 pence.

All 14 members of an index of auto-industry companies in the Stoxx 600 advanced. Volkswagen, Europe’s biggest carmaker, climbed 3.8 percent to 178.65 euros. Porsche SE gained 4.5 percent to 64.50 euros and Bayerische Motoren Werke AG (BMW) added 3.7 percent

ArcelorMittal, the world’s biggest steelmaker, rose 3.8 percent to 13.42 euros. China Steel Corp. and Posco led a group that agreed to pay $1.1 billion for a 15 percent stake in ArcelorMittal Mines Canada Inc. to secure supplies of iron ore.

Asian stocks rose, heading for their highest close since August 2011, as the U.S. House of Representatives passed legislation averting some of $600 billion in automatic tax increases and spending cuts.

Nikkei 225 Closed

S&P/ASX 200 4,705.94 +56.99 +1.23%

Shanghai Composite Closed

Australian gold producer Newcrest Mining Ltd. added 3.6 percent as the precious metal climbed.

BHP Billiton Ltd., the world’s biggest mining company, advanced 2 percent in Sydney, leading gains among raw-material producers, after China’s manufacturing expanded for a third month.

Techtronic Industries Co., a maker of power tools that counts North America as its biggest market, gained 3.6 percent in Hong Kong as the Hang Seng Index headed for its best first session of the year since 2009.

Most Asian stocks declined, paring this year’s advance, with a deadline looming for the U.S. Congress to reach a budget agreement to avert automatic tax increases and spending cuts.

Nikkei 225 Closed

S&P/ASX 200 4,648.95 -22.35 -0.48%

Shanghai Composite 2,269.13 +35.88 +1.61%

BHP Billiton Ltd.  and Rio Tinto Group, the world’s largest mining companies, led declines among companies with earnings closely tied to economic growth.

Fairfax Media Ltd. surged 7.4 percent, paring its slump in 2012, amid speculation billionaire Gina Rinehart and investor John Singleton may seek control of Australia’s second-largest newspaper publisher.

China Resources Power Holdings Co., a Hong Kong-listed mainland utility, rose 1.4 percent after a survey showed Chinese manufacturing speeding up.

European stocks were little changed, with the benchmark index completing the biggest annual gain since 2009, as U.S. lawmakers faced a midnight deadline to agree on a budget deal to prevent automatic deficit-reduction measures from coming into effect tomorrow.

The Stoxx 600 added 0.1 percent to 279.14 at 1:44 p.m. in London, following a shortened day of trading. The benchmark measure ended the year with a gain of 14 percent.

China’s manufacturing expanded at the fastest pace in 19 months, a report showed today. The final reading of a Purchasing Managers’ Index was 51.5 in December, according to a statement from HSBC Holdings Plc and Markit Economics. That compares with the 50.9 preliminary reading on Dec. 14 and a final 50.5 in November. A level above 50 indicates expansion.

2012 Performance

Greece’s ASE Index (ASE) and Germany’s DAX Index were the best- performing western European markets in 2012, as they surged 33 percent and 29 percent respectively. Spain’s IBEX 35 Index was the worst, dropping 4.7 percent. The U.K.’s FTSE 100 and France’s CAC 40 advanced 5.8 percent and 15 percent respectively.

Nine of the 18 western European markets including Germany and Switzerland were closed today.

FTSE 100 5,897.81 -27.56 -0.47% CAC 40 3,641.07 +20.82 +0.58% DAX 7,612.39 -43.49 -0.57%

ACEA lost 2.4 percent to 4.55 euros after its renewable- energy unit agreed to sell Apollo Srl, which manages photovoltaic plants with a total installed capacity of 32.54 megawatts, to RTR for 102.50 million euros.

Bankia slipped 3.2 percent to 39.1 euro cents, erasing its earlier gains. The lender has plunged 43 percent in the last three days, after Spain said Bankia has a negative value of 4.15 billion euros.

HSBC Holdings Plc (HSBA), Europe’s largest lender, dropped 0.7 percent to 646.9 pence, while Banco de Sabadell SA lost 2 percent to 1.98 euros.

SNS Reaal NV, the Dutch bank and insurer struggling to meet capital demands and repay a 2008 loan, dropped 2 percent to 1.03 euros. The company ignored Ernst & Young LLP’s advice in 2010 that it should write down as much as 1.2 billion euros on property finance loans

Viscofan, a Spanish sausage-casings maker, jumped 6.8 percent to 42.81 euros.

Change % Change Last

Nikkei 225 Closed

S&P/ASX 200 4,648.95 -22.35 -0.48%

Shanghai Composite 2,269.13 +35.88 +1.61%

FTSE 100 5,897.81 -27.56 -0.47%

CAC 40 3,641.07 +20.82 +0.58%

DAX 7,612.39 -43.49 -0.57%

Dow13,096.31-18.28-0.14%

Nasdaq2,985.91-4.25-0.14%

S&P 5001,418.10-1.73-0.12%

00:00Japan Bank holiday-

00:00China Bank holiday-

00:00Switzerland Bank holiday-

05:30Australia Commodity Prices, Y/YDecember -11.6%

08:50France Manufacturing PMI(finally)December 44.644.6

08:55Germany Manufacturing PMI(finally)December 46.346.3

09:00Eurozone Manufacturing PMI(finally)December 46.346.3

09:30United Kingdom Purchasing Manager Index ManufacturingDecember 49.149.2

13:00Germany CPI, m/m(preliminary)December -0.1%+0.7%

13:00Germany CPI, y/y(preliminary)December +1.9%+1.9%

14:00U.S. Manufacturing PMI(preliminary)December 54.253.2

15:00U.S. ISM ManufacturingDecember 49.550.2

15:00U.S. Construction Spending, m/mNovember +1.4%+0.6%