The US ADP employment report showed that private sector payrolls expanded by 93,000 in November, the biggest rise since November 2007 and above expectations for a gain of 69,000. The October result was substantially upgraded as well. The US ISM manufacturing eased slightly from 56.9 to 56.6 in November, but in line with forecasts. And US construction spending grew by 0.7pct in October.

The US Beige Book survey indicated that the economy continued to improve in the period to mid November but conditions in housing still remained depressed.

Data out yesterday showed that China´s performance of manufacturing index rose from 54.7 to a seven-month high of 55.2 in November.

European shares posted their biggest one-day gain in three months in response to positive economic data in the US and China. Banking and resource stocks both did well. The FTSEurofirst index rose by 2.1pct with the UK FTSE up 2.1pct and German Dax was higher by 2.7pct.

US sharemarkets soared on Wednesday in response to a rash of positive economic news. At the close of trade the Dow Jones was higher by 249pts or 2.3pct with the S&P 500 up 2.2pct and the Nasdaq higher by 51pts or 2.1pct.

US treasuries fell sharply on Wednesday (yields higher) in response to encouraging economic data. US 2yr yields rose by 7pts to 0.54pct, and US 10yr yields rose by 18pts to 2.98pct.

The US dollar eased against the Euro and commodity currencies as solid US economic data caused investors to trim safe-haven flows. The Euro lifted from lows near US$1.2980 to US$1.3175, heading into the US close near US$1.3140. The Aussie dollar rose from lows near US95.50c to almost US97.00c, heading into the US close near US96.90c. But the Japanese yen eased from levels near 83.35 yen per US dollar to JPY84.40, ending US trade near JPY84.15.

US crude oil prices rebounded on Wednesday in response to positive US and Chinese economic data and a weaker US dollar. In other news, the US Government will not propose any new oil drilling off the US East Coast for the next seven years. The Nymex crude oil contract rose by US$2.64 or 3.1pct to US$86.75 a barrel.

Base metal prices posted solid gains on the London Metal Exchange on Wednesday in response to encouraging economic data across the globe and a weaker greenback. Aluminium rose 2.9pct and copper lifted 2.7pct with other metals gaining between 1.6-2.2pct. And the gold price also rose with the Comex gold futures price up by US$2.20 an ounce to US$1,388.30. The CRB futures commodity index rose by 2.5pct to a three week high.

Ahead: In Australia, international trade and retail trade figures are released. In the US, pending home sales data is released.

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