- Syria accepts Russian proposal
- Chinese data continues to improve
- Apple in focus ahead of iPhone launch
Dow Jones: 0.78%
S&P 500: 0.71%
Another string of upbeat economic data from China and positive developments in Syria buoyed US markets on Tuesday morning, with the S&P 500
extending its recent winning streak into the sixth day.
This is the longest number of consecutive positive sessions for the Wall Street benchmark since July 15th.
Syria said it accepted a Russian-backed proposal to give up chemical weapons to international control to avoid US military action, according to Russian news agency Interfax.
Meanwhile, the outlook for China economy brightened further today after industrial output, fixed-asset investment and retail sales strengthened during the month of August, with all three economic indicators rising by more than expected. Markets performed well on Monday after export figures from the world's second-largest came in better-than-expected and consumer price inflation eased last month.
Syria crisis in focus
Interfax quoted Syria's Foreign Minister Walid Muallem as saying: "We held a very fruitful round of talks with [Russian] Foreign Minister Sergei Lavrov yesterday, and he proposed an initiative relating to chemical weapons. And in the evening we agreed to the Russian initiative."
He is reported to have said that Syria agreed in an attempt to "remove the grounds for American aggression".
Barack Obama said yesterday that he would defer any military strike on Syria if the government agreed to Russia's plan. All eyes will be on the President ahead of his speech tonight in which he will address the nation on the latest developments.
"No action from the US is clearly the preferred outcome for the markets [...] Whether that will be the eventual outcome is another matter altogether," said Market Strategist Ishaq Siddiqi from ETX Capital.
"Many have already questioned whether Assad will consider giving up his chemical weapons, or whether this is just intended to delay the US congressional vote. The latter is the most likely at the moment, but both are good news for the markets."
Apple to unveil new iPhone
Apple gained before the tech giant unveiled its new iPhone models at an event at its Cupertino headquarters in California later on. The company is expected to launch the new model of its iPhone 5, dubbed the iPhone 5S, as well as the cheaper iPhone 5C version.
McDonald's jumped after saying same-store sales increased 1.9% last month, beating analysts' estimates.
Neurocrine Biosciences dropped as an experimental treatment for tardive dyskinesia failed to achieve targets of the study.
The latest shake-up of the Dow Jones Industrial Average has been unveiled with Bank of America, Hewlett-Packard and Alcoa to drop out of the index later this month, to be replaced by Goldman Sachs, Visa and Nike.