Wall Street ends higher on positive economic data

ALSO READ See how Asian markets are doing

US markets ended at their highest level in ten weeks. Positive manufacturing data and strong bank earnings from Europe boosted sentiment.

Dow Jones Industrial Average was up 1.99% or 208.44 points at 10674.38. Nasdaq Composite was up 1.8% or 40.66 points at 2295.36. Standard & Poor's 500 was up 2.2% or 24.26 points at 1125.86.

The ISM manufacturing index for July came in at 55.5. That may have marked a pullback from the 56.2 of June, but it exceeded the 54.2 that had been widely expected. Additionally, construction spending for June increased a surprise 0.1% after a 1.0% decline in the prior month. A 0.8% decline had been widely expected for June.

A look at all the data that's expected from US today-personal income in June is likely to come in lower at 0.1% after 0.4% rise in May. Consumer spending in June is also seen lower at 0.1 compared to 0.2% upmove in May.

Meanwhile factory orders in June may see some improvement in June. The market is expecting the data to come in at minus 0.5% after it fell back 1.4% last month. Pending home sales data will also be announced today.

The dollar fell to a three-month low against a basket of currencies on fears the US recovery is faltering, while the euro soared after hitting a key technical level. Strong European earnings pushed the euro close to USD 1.32 level for the first time since early May.

Oil rose 3% to break above USD 80 a barrel, its highest level in nearly three months, as equity markets rose on positive economic sentiment and the dollar weakened.

Copper prices rose to a three-month high on speculation that Chinese Government may cut back on policies aimed at slowing economic growth. Positive US construction data also supported prices.