Market down on news from Spain and upcoming earnings reports

NEW YORK - NOVEMBER 16:  Traders work on the f...

NEW YORK – NOVEMBER 16: (Image credit: Getty Images via @daylife)

The Dow Jones Industrial Average and S&P 500 are down slightly this morning as all eyes remained fixed on Spain. Spanish Prime Minister Mariano Rajoy stated today that a call for bailout funds is not imminent. News of the delay came after the close of European markets that had rallied all day in anticipation of an impending stimulus announcement.

No key market news has been announced in the United States today but stocks are down following news from Spain and investors’ growing concern over upcoming quarterly corporate earnings reports. The “liquidity-infused high from QE3” is wearing off and investors are beginning “to worry that corporate earnings will not only be down, but be worse than expected,” said Keith Springer, president of Springer Financial Advisors in Sacramento, California.

Gold and Silver were also down today with continued news of slowing demand in China and India. “While the market has been going up on the stimulus fever, lack of support from physical demand is putting some pressure on prices,” said Marc Ground, a commodity strategist at Standard Bank in Johannesburg. As the U.S. Gold price continues to largely track the euro, investors will await news from the eurozone for word on a Spanish assistance program.

At 1 p.m. (EDT) the APMEX Precious Metals spot prices were:

  • Gold, $1,779.80, Down $4.70.
  • Silver, $34.82, Down $0.13.
  • Platinum, $1,684.90, Up $2.10.
  • Palladium, $654.50, Up $8.00.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

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Housing and Consumer Confidence Reports Due

 

Stocks are holding their own Tuesday morning as investors are waiting for housing and consumer confidence data. At 10 a.m. (EDT), the July home-price index and the September consumer-confidence index will be released. Christian Tegllund Blaagjerg, Chief economist at FIH Erhvervsbank, said, “I think we’re going to see a very bullish housing market. I think the bottom was reached awhile ago. We’re not on a Ferrari-like recovery path, but still more like a Chevy pickup truck, [with] stable and continuing improvement.”

Gold is gaining ground against a stronger dollar today. The move was in response to data that central banks added to their Gold holdings in July and August. The countries leading the charge were South Korea with an increase of 16 tonnes and Paraguay with an addition of just over 7.5 tonnes. Gold is on a four-month positive trend, up 4.6 percent in September alone. Daniel Smith, an analyst at Standard Chartered said, “Ultimately, I think it’s quite likely we will get above $1,800 before the year-end, so maybe a month of sideways trading possibly and then generally trending higher in the next six months to a year.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,773.60, Up$10.00.
  • Silver, $34.39, Up $0.40.
  • Platinum, $1,635.50, Up $12.50.
  • Palladium, $641.30, Down $4.20.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

 

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Overnight profit taking for the euro

 

International Monetary Fund's Managing Directo...

International Monetary Fund’s Managing Director Dominique Strauss-Kahn (L) talks with , European Central Bank President Jean-Claude Trichet (C) and Italy’s Governor Mario Draghi (R) prior to the start of their G-7 meeting at the Istanbul Congress Center (Photo credit: Wikipedia)

 

After a four month euro rally, Tuesday saw some profit-taking and the euro fell against the dollar. Spain’s seeming reluctance to seek a bailout isn’t sitting well with investors either. Derek Halpenny, head of FX research in London, said “If Spain steps forward (to ask for a bailout) and all of us get some clarity it would remove an element of uncertainty.” While in a television interview, Spain’s Deputy Prime Minister admitted they were still considering the conditions of a possible bailout.

 

The other side of the euro coin is that German investor confidence rose for the first time in five months. The rise is in response to the European Central Bank’s plan to buy government bonds. Holger Schmieding, chief economist at Berenberg Bank in London, said of ECB President Mario Draghi, “Draghi may have saved Germany.

 

Gold, which tracks closely to the euro, came off a recent six month high. Similar to the euro, it succumbed to overnight profit-taking. Without any new news today, it wouldn’t be surprising to see investors jump back in.

 

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

 

  • Gold, $1,764.60, Down $5.00.
  • Silver, $34.44, Up $0.06.
  • Platinum, $1,670.10, Down $3.50.
  • Palladium, $682.40, Down $6.70.

 

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

 

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QE3 decision coming at 12:30 P.M. EDT

 

Gold and Silver prices are mostly flat this morning as investors await a Federal Reserve monetary policy decision.  Fed Chairman Ben Bernanke is scheduled for a press conference at 2:15 p.m. (EDT), though the policy decision should be out closer to 12:30 p.m. (EDT).  David Morrison of GFT Markets believes that the markets have “priced in significant action from the (Fed).  The expectation is for a further round of large-scale asset purchases similar to 2010’s $600 billion QE2 program.” He continued, “The language accompanying another round of quantitative easing will be all-important” because if the Fed decides to wait, the markets could be in for disappointment.

Prices remained stable after the weekly jobless claims report was released.  Claims rose by 15,000 last week, about 12,000 more than expected.  Guy Berger of RBS Securities, Inc. said, “The labor market continues to be disappointing.  We’d like to see the hiring side pick up.  Companies are very cautious given all the uncertainty.”

One of the countries hit hardest by the eurozone debt crisis is Spain, which boasts the third-largest economy in the eurozone.  Spain’s prime minister Mariano Rajoy suggested to parliament yesterday that Spain may not need to ask for a bailout due to the success of the European Central Bank’s bond-buying program.  Many experts believe a bailout will be necessary eventually, however, and the delay in asking for one could prove to make things worse by way of conditions for receiving bailout funds.  Goldman Sachs analysts wrote, “The more the Spanish administration indulges domestic political interests and is perceived to be taking undue advantage of external support, the more explicit conditionality is likely to be demanded.”

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold, $1,734.40, Up $1.70.
  • Silver, $33.21, Down $0.09.
  • Platinum, $1,661.40, Up $10.80.
  • Palladium, $684.60, Up $5.30.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

 

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Analyst: Time for QE3

Modern-day meeting of the Federal Open Market ...

Modern-day meeting of the Federal Open Market Committee at the Eccles Building, Washington, D.C. (Photo credit: Wikipedia)

Precious Metals are trading higher this morning in anticipation of the Federal Reserve meeting tomorrow.  After last week’s dismal jobs report, analysts believe the time is now for the Fed to act.  Mike Dueker of Russell Investments wrote, “If many (Federal Open Market Committee) members meant what they said about needing to see ‘substantial and sustainable strengthening in the pace of the economic recover’ in order not to implement a third around of quantitative easing, then it is time to act.

Germany’s Federal Constitutional Court blocked requests for an injunction which would rule German support of the eurozone rescue fund unconstitutional.  German Chancellor Angela Merkel said that the ruling sends “yet another strong signal to Europe and beyond: Germany is accepting its responsibility as the largest economy and reliable partner in Europe.”

The Platinum price is gaining at a much greater pace than other metals today due to the unrest in South Africa.  The top Platinum producer in the world, Anglo American Platinum, is now being affected by striking miners, who blockaded roads leading to shafts.  “Fear of intimidation and threats by unidentified individuals in and around” certain locations caused some non-striking miners to be unable to report for work, according to a statement.

At 9 a.m. (EDT), the APMEX Precious Metals spot prices were:

  • Gold – $1,738.90 – Up $5.00.
  • Silver – $33.71 – Up $0.15.
  • Platinum – $1,646.10 – Up $38.10.
  • Palladium – $679.50 – Up $4.60.

APMEX’s Account Managers now have extended hours Mondays through Thursdays and are here to serve you until 8 p.m. (EDT)! Or call us Fridays until 6 p.m. (EDT)! If you have any questions about investing in Precious Metals or simply would prefer to place your order by telephone, we are here to help.

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