*from www.bloomberg.com, April 10, 2013 (To view original article click here.)
Take Away #1: Stocks jumped, as China’s imports grew, Japan reiterated its stimulus plans, and investors speculated earnings will beat estimates.
Key Facts and Figures:
- The S&P 500 Index reached an intraday record, advancing 1.2% to 1,587.24 at 1:24 p.m. in New York.
- The S&P 500 Index posted its biggest gain in more than a month and traded at its highest level ever.
- Imports to China rose 14.1% in March from the year earlier, leaving the nation with an unexpected trade deficit.
- Bank of Japan Governor Haruhiko Kuroda reiterated a pledge for all necessary steps to meet a goal of 2% inflation in two years.
- The yen fell to its weakest level versus the dollar since April 2009.
Take Away #2: Treasuries fell as minutes showed the Federal Reserve debated the end of the stimulus.
Key Facts and Figures:
- The 10-year treasury yield rose three basis points to 1.78%.
- Futures remained higher before the open of the exchanges as the Fed released its minutes ahead of the previously scheduled 2 p.m. time.
- The minutes were released ahead of schedule because they were mistakenly sent to some people yesterday afternoon.
- Chairman Bernanke left the pace of the government and mortgage debt purchases at $85 billion a month at that meeting.
- Bernanke said further improvement in the U.S. labor market is needed to consider reducing its monetary easing policy.
Take Away #3: Stocks also got a boost from a promising start to earnings season.
Key Facts and Figures:
- Technology and financial shares, the largest industries in the S&P 500, climbed more than 1% collectively to lead the rally in all 10 of the index’s main industry groups today.
- Since the bull market began the two groups have gained 2% on average in the first two weeks after Alcoa Inc. marked the start of quarterly earnings season.
- The entire S&P 500 has gained 1.7% on average in those weeks.
- While analysts predict profits fell 1.8% in the first three months of the year, results have beaten estimates since the first quarter of 2009.
- Three straight years of profit growth helped propel the index up more than 133% since 2009.
- The benchmark gauge for American stocks is trading for 15.6 times reported adjusted earnings, the highest in more than two years.
- Constellation Brands Inc. and Bed Bath and Beyond are among six companies scheduled to report earnings today.
Take Away #4: Markets movers include Apple, Yahoo, Pfizer, and Tenet Healthcare.
Key Facts and Figures:
- Apple Inc. and Yahoo Inc. climbed more than 1.6% as the companies were said to discuss ways to collaborate more closely on mobile software.
- Pfizer Inc. rallied 2.8% after saying its palbociclib compound gets breakthrough designation as the potential treatment for breast cancer.
- Tenet Healthcare Corp. slipped 5.3% following an analyst downgrade.
Take Away #5: The Stoxx Europe 600 Index continued to advance and solar companies rallied.
Key Facts and Figures:
- The Stoxx Europe 600 Index climbed 1.8% for a third straight advance, the longest stretch since January.
- Air France-KLM Group and EasyJet Plc gained more than 6.5% as analysts upgraded the airlines.
- Solarworld AG, Wacker Chemie AG, SMA Solar Technology AG rose at least 5.8%.
- First Solar Inc., the world’s largest thin-film solar manufacturer, surged 46% in New York trading yesterday after sales forecast topped analyst estimates.
Take Away #6: Emerging markets advance.
Key Facts and Figures:
- The MSCI Emerging markets Index rose for a second day, advancing 0.9%, with benchmark gauges in India, the Czech Republic, Thailand, and the Philippines gaining more than 1%.
- The Hang Seng China Enterprises Index of mainland companies increased 0.8%.
- Data from the customs administration showed exports rose less than forecast as imports topped estimates in March leaving an unexpected trade deficit of $880 million.
- South Korean stocks rose for a second day and the won strengthened 0.6% against the dollar.
- South Korean and U.S. forces upgraded their joint surveillance “Watchcon” status by one level to monitor an imminent ballistic missile test.
- North Korea’s threats are raising the odds of the first interest-rate cut by its southern neighbor since October as they threaten to damp sentiment in Asia’s fourth-largest economy.
- Eleven of 20 economists forecast the Bank of Korea will reduce borrowing costs tomorrow, according to a Bloomberg News survey.
- Japan’s currency weakened against all 16major counterparts.
- Australia’s currency rose as high as $1.0552, the strongest since January, and climbed against all 16 major peers.
Take Away #7: Japanese government bonds slid while Japanese stocks rose.
Key Facts and Figures:
- Japanese government bonds slid, with the five-year note rising to 0.28%, the highest in about a year.
- Prime Minister Shinzo Abe said in parliament that the BOJ’s stimulus is boosting stock prices and weakening the yen, though Japan is not intentionally debasing its currency.
- Japanese stocks rose with the Topix Index capping a six-day rally for its longest win streak this year, on optimism the yen’s weakness will improve the earnings outlook for exporters.
Take Away #8: Commodities retreated including gasoline, silver, copper, and gold.
Key Facts and Figures:
- Gasoline, silver, copper and gold dropped at least 0.7%.
- The S&P GSCI Index of commodities was down 0.4%.
- West Texas Immediate oil fell 0.2% to $95.05 a barrel.
- Wheat futures fell the most in more than a week, with the July contract down 2.4%.
- The USDA said global inventories of wheat will be bigger than forecast last month.
- Corn and Soybeans also declined.
- World stockpiles of wheat before the year’s Northern Hemisphere harvest will total 182.26 million metric tons, more than the 178.23 million forecast in March, the USDA.
- Analysts surveyed by Bloomberg expected 178.82 million.
- Prices have plunged into a bear market, down 25% from last year’s peak, on signs that global demand is slowing and that farmers will boost output in the next year.
*To view original article from www.bloomberg.com click here.