Bernanke’s Comments Trigger Stock Market Rally

Asian markets traded mixed on Monday following Friday’s disappointing home sales data from Wall Street,. The Nikkei rose .1% to 10018, the ASX 200 slipped .2%, and the Kospi dropped .4%. In China, the Shanghai Composite rose fractionally, and the Hang Seng settled flat.

European markets rallied in the afternoon as comments by Fed Chairman, Bernanke, suggested further economic easing was likely. Bernanke said the economy must grow quicker to produce more jobs, and suggested that process could be aided by government policies.

The DAX climbed 1.2%, the FTSE advanced .8%, and the CAC40 gained .7%. Germany’s IFO business activity report rose unexpectedly, contributing to the gains.

US stocks posted large gains, encouraged by the Bernanke’s remarks. The Nasdaq surged 1.8%, the S&P 500 climbed 1.4%, and the Dow advanced 161 points to 13242.

Nasdaq Spikes 1.8%

Lions Gate Entertainment jumped 4.5% after the new movie, “The Hunger Games”, netted $214 million in its opening weekend.

Currencies

The Dollar tanked in the currency markets. The Australian Dollar led the gains, rising 1.3% to 1.0536. In Europe, the Euro gained 1.2% to 1.3356, the Swiss Franc rose 1.1% to 1.1074, and the Pound advanced .9% to 1.5968. The Yen bucked the trend, slipping .3% to 82.88.

Economic Outlook

Continuing Friday’s dreary housing news, pending home sales unexpectedly fell .5%. Analysts had forecast a gain of 1% after last month’s 2% jump.

Asia Spikes, West Consolidates, after Monday’s Rally

Equities

Asian markets jumped in response to Monday’s Wall Street rally, inspired by Bernanke’s suggestion of another round of government stimulus. The Nikkei surged 2.4% to 10255 its highest close in more than a year. The Hang Seng rallied 1.8% to 21047, the ASX 200 climbed .9%, and the Kospi advanced 1% to 2040. The Shanghai Composite bucked the trend, easing .2% to 2347.

In Europe, markets declined, surrendering some of Tuesday’s gains after US consumer confidence data came in below forecasts. The CAC40 slumped .9%, the FTSE slid .6%, while the DAX closed flat. The Royal bank of Scotland advanced 3.3% on rumors of a possible investment by Abu Dhabi’s ruling family.

US stocks closed lower after hovering near break even for most of the session. The Dow declined 44 points to 13198, the S&P 500 lost .3% to 1413, and the Nasdaq settled down .1% at 3120.

Dow Slips 44 Points

Bank of America skidded 3.3% after Baird downgraded the stock.

Currencies

The Dollar traded modestly higher on Tuesday, as currency markets traded in a narrow range. The Australian Dollar shed .5% to 1.0482, the Canadian Dollar lost .3% to .9944, and the Pound traded flat. The Euro and Swiss Franc both declined .2%, and the Yen dropped .3% to 83.10.

Economic Outlook

The Case Shiller home price index showed prices remained flat in January,. Consumer confidence fell to 70.2 from 71.6 last month, slightly below expectations.

Global Stocks Slide on Mounting Economic Concerns

Equities

Asian markets closed mostly lower on Wednesday, led by heavy losses in China.   The Shanghai Composite tumbled 2.7% to 2285, a 2-month low as disappointing earnings weight on the index. The Hang Seng fell .8%, the Kospi slid .4%, and the Nikkei dropped .7% to 10183. Australia’s ASX 200 escaped the losses, rallying 1%, after the country’s central bank reported that the nation’s banking sector is in good shape.

European markets skidded, weighed down by weak economic data. The CAC40 and DAX slid 1.1%, and the FTSE dropped 1% to 5809.   Data suggested that Spain is now in another recession, and the UK’s GDP shrank more than forecast.

US stocks opened sharply lower but recovered much of their losses throughout the day. The Dow shed 72 points to 13126, while the S&P 500 and Nasdaq both fell .5%. Caterpillar shares sank 3.5% to 104.26, pressured by a disappointing durable goods report.

Currencies

The currency markets traded mixed on Wednesday. The Pound fell .3% to 1.5894, the Australian Dollar declined .6% to 1.0393, and the Canadian Dollar slipped .3% to .9980. The Yen advanced .5% to 82.78, while the Euro and Swiss Franc closed flat.

Economic Outlook

Durable goods orders rose 2.2% last month, less than the 3% hoped for by analysts. Weekly mortgage applications rose while refinancing applications fell, a positive sign for the housing industry.

Asian and European Stocks Skid, Energy Sinks

Equities

Asian markets fell on Thursday as mounting fears of a global slowdown weight on investors’ nerves. The Nikkei slid .7% to 10115, the Kospi slumped .9%, and the ASX 200 eased .1%. The Shanghai Composite tumbled for a second day, skidding 1.4% to 2252, and the Hang Seng sank 1.3% to 20609.

Selling pressure intensified in Europe, as the DAX tanked 1.8% to 6875, the CAC40 fell 1.4%, and the FTSE dropped 1.2%. Financial shares fell nearly 3%, and Italy’s MIB index plunged 3.3%.

Germany's DAX Drops 1.8%

In contrast, US stocks continued to show their resilience, as the major indexes bounced back from a 1% slide to close mixed. The Dow rose 20 points to 13146, 113 points off its low for the day. The Nasdaq declined .3%, and the S&P 500 eased .2% to 1403.

Sprint jumped 5.3% after Deutsche Bank raised its outlook for the company.

Health care stocks rallied as the Supreme Court listens to hearings concerning the legality of Obamacare. Aetna surged 6.5%, and Coventry Health sprinted 5.9% higher.

Currencies

The currency markets traded mixed with no clear direction. The Yen advanced .5% to 82.44, the Pound rose .4% to 1.5952, and the Canadian Dollar edged up .2% to .9965. The Euro, Swiss Franc, and Australian Dollar all slipped .1%.

Economic Outlook

Weekly unemployment claims fell to 359K, a 4-week low, but fell short of analyst forecasts for 351K. GDP for the 4th quarter rose at 3%, as expected.

US Stocks Complete Best Quarter Since the 90′s

Equities

Asian markets closed mixed on Friday, while ending the quarter with strong gains. The Nikkei eased 31 points to 10084, up 19.3 for the first quarter, and the Kospi settled flat, cementing a gain of 10% for the first quarter. The Hang Seng slipped .3% to 20556, climbing 11.8% in the first quarter, and the Shanghai Composite rose .5%, inching up a mere 2.9% in the first 3 months of the year. Finally, the ASX 200 edged down .1%, up 7% for the quarter.

In Europe, stocks rallied as finance ministers agreed to expand the region’s rescue fund., as concerns over Spain’s debt troubled escalated. The CAC40 advanced 1.3%, the DAX climbed 1%, while the FTSE rose a more modest .5%. Gains in Europe were more muted than elsewhere, as the FTSE rose just 3.5% for the quarter.

US stocks closed mixed. The Dow rose .5% to 13212, the S&P 500 gained .4% to 1408, while the Nasdaq eased .1% to 3092. For the quarter the Dow gained 8%, the S&P climbed 12%, and the Nasdaq surged 18.7%.  All three indexes had their best showing since the 1990′s.

Nasdaq Climbs 18.7% in First Quarter, Largest Gain Since 1991

Research in Motion shares jumped 7.1% even though the company posted a loss, after suggesting the company will launch an internal review which may involve a sale of the company.

Currencies

European currencies advanced, encouraged by the expansion of the rescue fund to 700 billion Euros. The Euro rose .3% to 1.3340, the Pound gained .4 to 1.6012, and the Swiss Franc climbed .5% to 1.1086. The Yen slid .5% to 82.86, the Australian Dollar declined .3 to 1.0342, and the Canadian Dollar eased .2 to .9987.

Economic Outlook

Personal income rose .2%, less than forecast, while personal income jumped .8%, exceeding forecasts. Chicago PMI declined slightly to 62.2 from 64, while consumer sentiment jumped to 76.2, its highest level in more than a year.