U.S. Home Prices Drive Brent Above $114
Brent crude oil rose to new highs on Wednesday morning. The commodity traded at $114.43, a price not seen since mid October of 2011.
Markets have been optimistic as the world's largest economies produce better than expected data suggesting that the global economy is on the mend.
In the spotlight this week was the U.S., whose home prices rose by five percent since last year in November. This increase is the largest the U.S. has seen since August 2006, when the housing bubble burst.
The boost from home prices may be just the beginning, as according to CNBC, most investors are waiting to hear the results of the Federal Reserve Policy meeting before making any big moves. The two day meeting, which closes on Wednesday afternoon, isn't expected to result in any major policy changes.
However, if the Fed keeps its promise to keep interest rates low, oil prices will continue to rise as investors turn to riskier assets.
Also coming up on Wednesday are U.S. fourth quarter GDP estimates, expected to be announced later in the afternoon.
Chinese data also contributed to optimism within the market investors speculated that the nation ramped up its factory activity in January. The official PMI data will be released on Friday, and results in line with the promising forecasts will add to the nation's positive momentum.
Chinese growth and recovery is expected to buoy the market until the second quarter, but analysts are hopeful that a European rebound toward the year end will maintain global growth rates.
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