Category: Market News

Stocks Fall on Concern Japan’s Quake to Hurt Growth; Treasuries, Euro Gain

Global stocks slid, following the biggest drop in Tokyo since 2008, and Treasuries gained amid concern Japan’s biggest earthquake on record will hurt economic growth. The euro rallied as European leaders agreed to expand the region’s rescue fund.

The Standard & Poor’s 500 Index fell 0.6 percent to 1,296.39 at 4 p.m. in New York, paring a drop of as much as 1.4 percent as energy shares rebounded. The Nikkei 225 Stock Average plunged 6.2 percent, with about $285 billion in equity value erased from the Japanese market. Ten-year Treasury yields lost 4 basis points to 3.37 percent. Oil reversed losses after dipping below $99 a barrel. The euro rose against 15 of 16 major peers.

Companies that operate nuclear power plants or supply the fuel helped lead stocks lower, with Entergy Corp. down 4.9 percent in New York and Cameco Corp. tumbling 13 percent in Toronto, while natural gas rallied amid speculation that the atomic-energy industry will suffer as Japan works to contain radiation at damaged reactors. Tiffany & Co. and Coach Inc. lost more than 5.2 percent for the biggest declines in the S&P 500 on concern sales of luxury goods in Japan will slow.

Gold prices will hit $2,500 in the near future

Gold prices will hit $2,500 in the near future.
Government Pushing Gold in China, although it’s rarely mentioned in the Western media, the Chinese government is encouraging their citizens to buy physical gold bullion as part of an effort to cool further investment in the red-hot real estate and housing sectors.

“Unlike the property market, investment in the gold sector is something the government is encouraging,” ICBC’s Zhou told Reuters.

“There is frantic demand for non-physical gold investments. We issued 1 billion yuan ($151 million) worth of gold-price-linked term deposits in 2010, but we managed to sell the same amount over just a few days in January this year,” Zhou said, adding that investors will deposit more than 5 billion yuan ($759 million) in gold-linked accounts this year…

Euro Slides as Moody’s Cuts Portugal’s Credit, Technical Momentum Wanes

The euro halted three days of gains versus the dollar as Moody’s Investors Service downgraded Portugal’s credit rating, reviving concern about Europe’s ability to solve its debt crisis.

The 17-nation common currency depreciated versus all but two its major counterparts after Portugal was cut two steps by Moody’s yesterday to A3, four steps from so-called junk status. The rating company said its outlook remained negative given Portugal’s “subdued growth prospects” and risks that the government won’t be able to implement deficit-reduction plans.

Baby boom fuels gold rush

Young Chinese couples believed that people born during these years would be blessed with tremendous good fortune and luck. The current baby boom is expected to last until 2015 and will see China having more than 100 million children under the age of 6 every year. In 2009 alone,…..

Fed Keeps Pedal to the Metal as Egypt Unrest Weighs on Markets

Stocks swaggered through the first four days of the past week with their usual devil-may-care attitude, then tripped into the final three hours on Friday amid scenes of civil unrest in Egypt. At the final count, the Dow Jones Industrials closed down Friday by 1.4%, theS&P 500 fell 1.8%, theNasdaq fell 2.5% and the Russell 2000small-caps sank 2.5%.

For the week, the Dow was only down 0.4%, though, while the S&P was off 0.5%, the Nasdaq was flat and the Russell 2000 small-caps were actually up 0.3%.
Click Here to see how the unrest in Egypt will drive the markets…