December 19, 2012-Stocks Set to Trade Higher on Continued Hopes of US Fiscal Deal

Even as doubts regarding lawmakers agreeing on a common solution for the fiscal cliff linger, traders are still hopeful they will not be let down. The sentiment is reflected in the trading in the index futures, which are moving higher even after the solid gains of the past two sessions. Despite the hopes, the underlying mood is likely to remain cautious, given the fact that Democrats are not convinced about the Plan B proposed by Republican speaker John Boehner. The markets may also look to the housing starts report due before the markets open for trading cues. Meanwhile, across the Atlantic, a report showed that German business confidence improved for a second straight month, allaying fears concerning sluggishness in Europe's largest economy. The Dow futures are rising 35 points and the S&P 500 futures are adding 3.10 points, while the Nasdaq 100 futures are gaining 9.50 points. Fiscal cliff hopes kept the upward momentum of the markets intact, as the averages advanced strongly yet again on Tuesday.