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Equities
Selling pressure hit Asian markets, as rising interest rates in Italy and Spain triggered nervous selling. The Nikkei dropped .7% to 8542, the Kospi declined .9%, and the ASX 200 skidded .4%. Hong Kong’s Hang Seng fell .8%, while the Shanghai Composite bucked the downtrend, closing up fractionally.
European markets closed lower in a volatile session, as a spike in French interest rates hurt financial shares. The CAC40 slumped 1.9%, as BNP Paribas and Societe Generale both tumbled more than 5%. The DAX declined .9% and the FTSE closed down fractionally, recovering from a sizable loss earlier in the day. Italy’s new prime minister, Mario Monti succeeded in forming a government, helping stocks pare their early losses.
Afternoon Rally Helps FTSE Pare Losses
In the US, stocks gained, led by the Nasdaq, which rallied 1.1%. The Dow closed up 17 points to 12096, and the S&P 500 rose .5% to 1258.
Staples shares dropped 3.6% after reporting weak sales and cutting its profit forecast. Wal-Mart dropped 2.4% after falling short of analyst forecasts.
Treasuries and Commodities
Bonds rose modestly, with 10-year notes settling up 2/32 to yield 2.05%, and 30-year notes gaining 16/32 to yield 3.08%.
In the UK, bonds rallied, particularly the 30-year note, which rose 1.16 to yield 3.13%.
Commodities traded mostly higher, as upbeat economic data suggested the US economy is in better shape than feared. In energy, crude oil gained 1.3% to 99.43, gasoline jumped 1.9% to 2.5834, while natural gas declined 1.2% to 3.415.
Among metals, silver shined, climbing 1.6% to 34.58. Gold and copper both rose .3%.
Agricultural futures rallied across the board. Cotton jumped 4.1%, coffee advanced 3.7%, and wheat gained 2.8%.
Currencies
The Dollar advanced for a second day. The Euro fell .6% to 1.3535, the Pound declined .5% to 1.5814, and the Swiss Franc slumped .8% to 1.0924. The Canadian Dollar fell .4% to 1.0212, while the Yen inched up .1% to 77.06.
Economic Outlook
Tuesday’s economic data projected a healthy outlook for the US economy. Retails sales rose by.6%, more than forecast, and the Empire State manufacturing survey unexpectedly climbed, snapping a 5-month losing streak. PPI unexpectedly fell thanks to a drop in commodity prices.
Wednesday’s reports will include CPI, industrial production, the NAHB Housing Market Index, weekly mortgage applications, and weekly oil inventories.
Earnings are due from Target, Applied Materials, and Abercrombie and Fitch.
analysis written by Bradley Welcher
To read the Weekly fundamental analysis click here
Equities
Selling pressure hit Asian markets, as rising interest rates in Italy and Spain triggered nervous selling. The Nikkei dropped .7% to 8542, the Kospi declined .9%, and the ASX 200 skidded .4%. Hong Kong’s Hang Seng fell .8%, while the Shanghai Composite bucked the downtrend, closing up fractionally.
European markets closed lower in a volatile session, as a spike in French interest rates hurt financial shares. The CAC40 slumped 1.9%, as BNP Paribas and Societe Generale both tumbled more than 5%. The DAX declined .9% and the FTSE closed down fractionally, recovering from a sizable loss earlier in the day. Italy’s new prime minister, Mario Monti succeeded in forming a government, helping stocks pare their early losses.
Afternoon Rally Helps FTSE Pare Losses
In the US, stocks gained, led by the Nasdaq, which rallied 1.1%. The Dow closed up 17 points to 12096, and the S&P 500 rose .5% to 1258.
Staples shares dropped 3.6% after reporting weak sales and cutting its profit forecast. Wal-Mart dropped 2.4% after falling short of analyst forecasts.
Treasuries and Commodities
Bonds rose modestly, with 10-year notes settling up 2/32 to yield 2.05%, and 30-year notes gaining 16/32 to yield 3.08%.
In the UK, bonds rallied, particularly the 30-year note, which rose 1.16 to yield 3.13%.
Commodities traded mostly higher, as upbeat economic data suggested the US economy is in better shape than feared. In energy, crude oil gained 1.3% to 99.43, gasoline jumped 1.9% to 2.5834, while natural gas declined 1.2% to 3.415.
Among metals, silver shined, climbing 1.6% to 34.58. Gold and copper both rose .3%.
Agricultural futures rallied across the board. Cotton jumped 4.1%, coffee advanced 3.7%, and wheat gained 2.8%.
Currencies
The Dollar advanced for a second day. The Euro fell .6% to 1.3535, the Pound declined .5% to 1.5814, and the Swiss Franc slumped .8% to 1.0924. The Canadian Dollar fell .4% to 1.0212, while the Yen inched up .1% to 77.06.
Economic Outlook
Tuesday’s economic data projected a healthy outlook for the US economy. Retails sales rose by.6%, more than forecast, and the Empire State manufacturing survey unexpectedly climbed, snapping a 5-month losing streak. PPI unexpectedly fell thanks to a drop in commodity prices.
Wednesday’s reports will include CPI, industrial production, the NAHB Housing Market Index, weekly mortgage applications, and weekly oil inventories.
Earnings are due from Target, Applied Materials, and Abercrombie and Fitch.
analysis written by Bradley Welcher