IBT Staff Reporter

FedEx Corp raised its outlook on Monday on strong volume growth, giving a boost both to its own shares and to the broader market as investors acted on hopes that the economy is stronger than they had thought.

Oil rose on Monday after a surge in new U.S. home sales cut the number of houses on the market to the lowest level in more than four decades, easing fears the post-crisis economy could slide into a second recession.

A brighter outlook from FedEx Corp and a pickup in sales of new homes sent U.S. stocks higher on Monday, building on the best three-week period for the S&P 500 Index in a year.

Average daily volume in the over-the-counter U.S. foreign exchange market rose to $754 billion in April, up 11.8 percent from six months earlier, the Federal Reserve Bank of New York said on Monday. The total was just shy of record turnover of $762 billion seen in the six months to October 2008. The Fed said volume across all instrument types and execution methods and among most currency pairs rose in the latest reporting period.

Educated people are better able to cope with the physical effects of dementia, and even one extra year of education can significantly cut the risk of developing the brain-wasting disease, scientists said on Monday.

After one patient died and others suffered serious complications following Lap-Band surgery, Dr. Neelu Pal had seen enough. A petite surgical resident now aged 40, she began quietly calling patients about to undergo the weight-loss procedure at New York University's Medical Center, telling them she feared for their safety.

Apple Inc said on Monday its popular iPhone 4 model will go on sale in an additional 17 countries on Friday, July 30.

European banks who only just scraped through a health check could look for over 25 billion euros in new capital, while Spain's smaller lenders set out to reassure investors on Monday that they too can raise funds.

FedEx Corp raised its quarterly and full-year forecasts on Monday, citing strong volume growth, and its shares rose nearly 5 percent.

Sales of new U.S. single-family homes rebounded strongly in June from the prior month's record low, government data showed on Monday, driving the number of houses on the market to their lowest level in nearly 42 years.

The euro edged up against the dollar on Monday but was below early highs as investors speculated European bank stress tests weren't strict enough to support a rally in the euro zone single currency. Demand for the yen rose as appetite for risk faded, with European shares sliding and U.S. stock futures lower. Still, analysts said euro gains may not wane completely as recent data in the region had been supportive for the currency.

Stocks were set for a higher open on Monday after FedEx Corp raised its earnings outlook and ahead of data on new home sales.

BP Plc is expected to install an American troubleshooter as chief executive in the next 24 hours, replacing Tony Hayward, who has come under fire for his handling of the worst oil spill in U.S. history.

The euro zone interbank funding market reacted calmly on Monday to Europe's bank stress test results, and the absence of nasty surprises will see the European Central Bank continue to withdraw liquidity.

U.S. stock index futures were little changed on Monday ahead of data on new home sales, following the best three-week period on the S&P 500 Index in almost a year.

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The euro edged up against the dollar on Monday but came off early highs as investors concluded that although European bank stress tests revealed no horrors they delivered no compelling reason to buy the single currency.

Gold softened on Monday, losing some of its safe-haven appeal after a European banks stress test showed no nasty surprises, but physical buying offered support as levels below $1,200 an ounce attracted bargain hunters.

A World Trade Organisation panel has ruled that the European Union was wrong to impose duties on three types of electronics products from the United States and other countries, trade sources said on Monday.

Financial Crisis Inquiry Commission, a U.S. panel investigating the causes of the financial crises, may bring in outside accountants to scrutinize Goldman Sach's systems for data on its derivatives business, the panel's chairman told the Financial Times.

The global bullion market is now looking at Greece for a further boost to lift its spirit as officials from the International Monetary Fund (IMF) conduct a fiscal checkup required before the country gets its second loan instalment in mid-September.

Stock index futures were little changed on Monday ahead of data on new home sales, following the best three-week period on the S&P 500 Index in almost a year.

Oil fell moderately on Monday as Tropical Storm Bonnie faded over the Gulf of Mexico, but trading was cautious ahead of U.S. economic and corporate earnings data. Oil traders were reluctant to push oil prices too far in either direction before the release of US figures later in the day. Many are concentrating on the prospects of the United States, since it has been the main source in recent weeks of disappointing economic data that has kept alive fears of an erratic global recovery.

Irving Picard, the court-appointed trustee overseeing the liquidation of Bernard Madoff's investment firm, is preparing to file new lawsuits to recover funds from investors who were also duped by the Ponzi scheme, the Wall Street Journal said.

BP Plc is expected to install an American troubleshooter as chief executive in the next 24 hours, replacing Tony Hayward, who has come under fire for his handling of the worst oil spill in U.S. history.

Investors gave European banks the benefit of the doubt on Monday over stress tests that prompted more transparency from Spanish banks needing to raise capital than from German banks cagey about sovereign debt.

Stock index futures pointed to a slightly lower open on Wall Street on Monday, as investors take a breather following last week's strong gains sparked by a flurry of reassuring company earnings.

Robust U.S. company earnings and surprisingly vigorous euro zone economic data generally trumped investor skepticism about European bank stress tests on Monday to lift global stocks and bolster the euro against the dollar

There is good news for the economies in Europe as the European bank stress test passed off without much problems. However, this good news has become a pain for gold prices as the stability in EU economy is set to hit the yellow metal in the international market.