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U.S. Stocks Rise as Gold Rebounds While Treasuries Drop

*from www.bloomberg.com, April 16, 2013 (To view original article click here.)

Take Away #1: U.S. stocks rallied and Treasuries fell.

Key Facts and Figures:

  • The S&P 500 Index gained 1.3% at 1:10 p.m. in New York, rebounding from its biggest drop in five months.
  • Housing starts and earnings from Coca-Cola and Johnson & Johnson beat estimates.
  • Treasury 10-year note yields climbed five basis points to 1.73%, the first increase in four days.

Take Away #2: European stocks fell.

Key Facts and Figures:

  • The Stoxx Europe 600 Index fell 0.8%.
  • The Stoxx 600’s decline extended the drop over three days to 2.3%.
  • Michael Page International Plc slid 5% after the U.K. recruiter reported lower profit.
  • LVMH Moet Hennessy Louis Vuitton SA retreated 3.8% as revenue growth slowed.
  • Danone rallied 2.2% to a five-year high as the food company reported first-quarter sales growth that beat analysts’ estimates.
  • Confidence in Germany’s outlook fell more than economists forecast in April, according to the ZEW Center for European Economic Research.

Take Away #3: Japan’s currency dropped at least 0.9% against all 16 major counterparts, while the dollar weakened against 14.

Key Facts and Figures:

  • The yen declined 1.8% to 128.46 per euro after surging 3.5% during the previous two days.
  • Japan’s currency dropped 1.1% to 97.80 per dollar.
  • The dollar fell 0.8% to $1.3137 per euro, after gaining 0.6% yesterday.
  • New Zealand’s dollar strengthened for the first time in three days, climbing 1% to 84.91 U.S. cents.

Take Away #4: Gold rallied from a two-year low after the biggest selloff since 1980 as investors said the decline led to a buying opportunity.

Key Facts and Figures:

  • Gold jumped 2.6% and palladium and platinum climbed more than 3.5%.
  • “The outlook for gold for us is really positive in the long term,” said Catherine Raw of BlackRock Inc.
  • Gold for immediate delivery pared gains after climbing as much as 4.1% to $1,403.55 an ounce.
  • Gold sank 14% in the previous two days.
  • The drop was triggered by speculation that Cyprus would sell its gold reserves, leading other European central banks to follow suit, said Goldman Sachs.
  • Gold is down about 27% from its record high in September 2011.
  • During its 12-year rally, gold has gained more than 500%.
  • On an inflation-adjusted basis, it’s 43% lower than the record high.
  • Silver climbed 4% to $23.67 an ounce today, after tumbling 18% over two days.
  • Palladium declined 11% in the previous two days and platinum dropped 8.5%.
  • Crude oil retreated for a fourth day, losing 0.5% to $88.29 a barrel, and bringing its decline since April 10 to almost 7%.

Take Away #5: Stocks rebounded even after the International Monetary Fund trimmed its global growth forecast.

Key Facts and Figures:

  • The IMF urged European policy makers to use “aggressive” monetary policy as a second year of contraction leaves the euro area’s recovery lagging behind the rest of the world.
  • The global economy will expand 3.3% this year, less than the 3.5% forecast in January, after 3.2% growth in 2012, the IMF said today.
  • The IMF sees the 17-country euro area shrinking 0.3%, compared with a 0.2% retreat in January, with France joining Spain and Italy in contracting.

Take Away #6: Earnings top profit estimates and gauges of commodity, technology, financial, and consumer staples companies rose at least 1.3% to lead the rebound today.

Key Facts and Figures:

  • The S&P 500 sank 2.3% yesterday.
  • The index extended losses late yesterday as explosions near the finish line of the Boston Marathon killed three people and left at least 128 in the hospital.
  • Coca-Cola rose 5.7%, the most in four years, after profit topped estimates as Latin American sales volume rose and the company announced a deal to sell some bottling distribution rights.
  • BlackRock Inc. had earnings of $3.65 per share, compared with an estimate of $3.57.
  • Shares of BlackRock increased 0.6%.
  • Goldman Sachs Group Inc. retreated 1.5% after it reported revenue from its trading business fell more than its rivals.
  • Earnings topped analysts’ profit estimates at 71% from the 41 companies in the S&P 500 that have released quarterly results so far.
  • 56% have exceeded revenue projections so far.
  • First-quarter earnings at S&P 500 members are forecast to decline 1.4% from a year earlier, marking the first year-over-year decrease since 2009.

Take Away #7: Housing starts climbed and the cost of living in the U.S. declined in March.

Key Facts and Figures:

  • Housing starts climbed 7% to 1.04 million annual rate, the most since June 2008, following a revised 986,000 annual rate in February that was larger than previously reported.
  • The median estimate of 80 economists surveyed by Bloomberg called for 930,000.
  • The cost of living in the U.S. declined in March for the first time in four months as cheaper gasoline and clothing kept inflation in check.
  • The consumer-price index (CPI) dropped 0.2% after a 0.7% jump in February.
  • The median forecast in a Bloomberg survey called for no change.
  • The core measure, which excludes volatile food and energy costs, rose 0.1%, less than forecast.

Take Away #8: The MSCI Emerging Markets Index rose.

Key Facts and Figures:

  • The MSCI Emerging Markets Index rose for the first time in three days, adding 0.7%.
  • Benchmark gauges in South Africa, Indonesia and India gained at least 1%.
  • India’s Sensex Index jumped 2.1%, the most since September, on speculation declining commodity prices will help the government curb a record account-deficit.
  • EU emission permits fell the most ever after the European Parliament rejected a plan to reduce an oversupply in the world’s biggest carbon market.
  • Carbon prices for December dropped as much as 45% to 2.63 euros a metric ton on ICE Futures Europe in London.

Take Away #9: German Bunds Fall and Glencore advanced.

Key Facts and Figures:

  • German 10-year bund yields rose three basis points to 1.28% and the rate on similar maturity Italian binds fell three basis points to 4.31%.
  • Credit-default swaps on Glencore International Plc rose nine basis points to 182.
  • The world’s largest publicly traded commodities supplier cleared the final regulatory hurdle in its $30 billion takeover of Xstrata Plc after gaining approval from Chinese authorities.

*To view original article from www.bloomberg.com click here.

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