Commodities Rise Amidst Ukraine Unrest; Earnings Season Continues
April 14, 2014 8:39 am
European stocks fell Monday, as investors extended last week’s sell off and markets reacted to escalating tensions between the Ukraine and Russia. In Asian overnight, markets swung between gains and losses as raw-material companies declined and Sharp Corp. slumped. Hong Kong’s Hang Seng Index retreated 0.1%. Australia’s S&P/ASX 200 Index fell 0.9% with Rio Tinto declining.
In US markets Friday, stocks sank, extending the Standard & Poor’s 500 Index’s worst two-day drop since June, amid disappointing results at JPMorgan Chase & Co. and signs hedge funds were dumping the bull market’s best performers. JPMorgan lost 3.7% as profit fell 19% on lower fixed-income trading and mortgage revenue.
The DJIA finished down 0.87% at 16,029.83, the S&P 500 down 0.94% at 1,815.76, and the NASDAQ 100 down 1.17% at 3,446.85. Earnings releases will continue this week, with the likes of Goldman Sachs, Google and Bank of America releasing their Q1 numbers. Tech companies will remain the focus amid worries about bloated valuations.
In bond markets, US Treasury yields were near a six-week low as U.S. stock losses bolstered speculation the Federal Reserve will hold interest rates down and as unrest in Ukraine spurred demand for safety.
Meanwhile, in currency markets the euro weakened versus most of its 16 major peers after European Central Bank President Mario Draghi said its strength “requires further monetary stimulus.” However, the euro currency snapped a gain versus the greenback from last week that was the most in six months as Draghi’s rhetoric was echoed by other European policy makers in weekend meetings of the International Monetary Fund and World Bank, boosting bets they will consider adding to measures to support growth and spur inflation.
In commodities markets gold rose to the highest level in three weeks as tension escalated in Ukraine, boosting demand for a haven. Palladium rallied for a fifth day to the highest price in 32 months as platinum and silver climbed. On the macro agenda this week, look out for German ZEW survey and UK jobs data.
European stocks fell Monday, as investors extended last week’s sell off and markets reacted to escalating tensions between the Ukraine and Russia. In Asian overnight, markets swung between gains and losses as raw-material companies declined and Sharp Corp. slumped. Hong Kong’s Hang Seng Index retreated 0.1%. Australia’s S&P/ASX 200 Index fell 0.9% with Rio Tinto declining.
In US markets Friday, stocks sank, extending the Standard & Poor’s 500 Index’s worst two-day drop since June, amid disappointing results at JPMorgan Chase & Co. and signs hedge funds were dumping the bull market’s best performers. JPMorgan lost 3.7% as profit fell 19% on lower fixed-income trading and mortgage revenue.
The DJIA finished down 0.87% at 16,029.83, the S&P 500 down 0.94% at 1,815.76, and the NASDAQ 100 down 1.17% at 3,446.85. Earnings releases will continue this week, with the likes of Goldman Sachs, Google and Bank of America releasing their Q1 numbers. Tech companies will remain the focus amid worries about bloated valuations.
In bond markets, US Treasury yields were near a six-week low as U.S. stock losses bolstered speculation the Federal Reserve will hold interest rates down and as unrest in Ukraine spurred demand for safety.
Meanwhile, in currency markets the euro weakened versus most of its 16 major peers after European Central Bank President Mario Draghi said its strength “requires further monetary stimulus.” However, the euro currency snapped a gain versus the greenback from last week that was the most in six months as Draghi’s rhetoric was echoed by other European policy makers in weekend meetings of the International Monetary Fund and World Bank, boosting bets they will consider adding to measures to support growth and spur inflation.
In commodities markets gold rose to the highest level in three weeks as tension escalated in Ukraine, boosting demand for a haven. Palladium rallied for a fifth day to the highest price in 32 months as platinum and silver climbed. On the macro agenda this week, look out for German ZEW survey and UK jobs data.
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