Wealth effect fuelling US consumer spending

US STOCKS rose last week as retailers revelled in the magic of the holiday season.

Stocks are likely to rise to new records this week, as long as congressional tax negotiators and the Organization of the Petroleum Exporting Countries (Opec) enter into the holiday spirit.

Trade group National Retail Federation estimated that sales for the holiday period of November and December would rise as much as 4 per cent this year to US$682 billion, quelling fears that major bricks-and-mortar chains were doomed.