AM Analysis: “Global equities soar by $9.6 trillion in 2013” – Max Cohen
After its worst performance in more than 30 years, gold began 2014 on a stronger note recouping some 1.5% of its value last night. The buying spilled over into silver and copper, with dealers talking of Chinese demand for commodities in general.
Meanwhile, focusing on Europe, regional shares have erased gains seen over the last few sessions as investors await manufacturing data from the United States. With British manufacturing data coming in worse than expected, we could see the FTSE 100 trade even lower in the run up to the U.S data. Significantly, Fiat shares have soared throughout the morning after the carmaker agreed to buy the remaining stake in Chrysler Group.
Global equities soared by $9.6 trillion in 2013 as central-bank bond buying helped the U.S. economy gain momentum, while the euro area emerged from recession. European stocks rallied 17 percent in 2013. Their biggest increase since 2009 sent the Stoxx Europe 600 Index to 15.4 times its constituents’ projected earnings, up from 12.7 times at the beginning of 2013.
PM Analysis:“Gold jumps 1.6% as investors dump equities for commodities” – Lee Mumford
Global equity markets continue to trade in the red, starting the year in negative ground as investor’s dumped equities in exchange for commodities and the US dollar. Gold continued to grab the limelight after the precious metal jumped 1.6 percent to $1220, taking it clear of the $1200 psychological level.
US stock futures indicate a lower open as investors take to the side-lines ahead of key economic data. The declines follow the best year since 1997 for the Standard & Poor which surged 30 percent in 2013, finishing the year at an all-time high for the first time since 1999.
US Unemployment data showed fewer people claimed benefits over the last week to the lowest level in a month. Despite claims falling by 2,000 to 339,000, this was still slightly higher than the 334,000 projected. Further data from the US will help express the state of the economy in the form of ISM manufacturing PMI due at 3:00.
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