'Santa rally' hopes lifted after Spanish bond auction success

US stocks climbed overnight on upbeat economic data and a successful Spanish bond auction, lifting investor hopes of the fabled year-end 'Santa Claus rally'.

The Dow Jones Industrial Average gained 337 points, or almost 3%, to close at 12,103 on Tuesday. The blue-chip Dow had dropped 100 points on Monday to close at the lowest level of the month. US housing starts and permits for future builds reached an 18-month high in November, while unemployment dropped off in no fewer than 43 US states. Elsewhere, Spain sold £4.71bn worth of three- and six-month bonds yesterday, smashing its £3.76bn target. Last week, Spain sold nearly double the amount of longer-term bonds than it had targeted. Yields on Spain's three-month notes plummeted to 1.7%...