US markets extend gains on bullish data

Tuesday, December 24, 2013

Gold prices trended below $1200/oz yesterday on the bullish economic growth outlook, which has prompted investors to pare holdings of the yellow metal. Prices closed at a year-to-date low of $1188.68 last week and have remained under pressure since after the Fed announced they would begin tapering bond buying. The yellow metal has lost 30% this year and analyst expect further declines throughout 2014.

Asian markets gained overnight on better than expected US data with the MSCI Asia Pacific index rallying for a fifth straight session, closing 0.4% higher. Fears of a credit crisis in China have been abated for the meantime as the PBOC took steps to alleviate market pressure.

US markets extended gains for a fourth straight session, spurred by a better than expected Chicago Fed national activity index and stable growth in personal spending. The S&P 500 added 0.3% while the DJIA closed 0.6% higher. Activity is expected to remain subdued throughout the day during the shorter trading session but investors will gain further insight from US data, with durable goods, new home sales and the Richmond Fed manufacturing index all expected later today.  

 

Events for today: Monday, 24 December 2013

0500

US

Nov

Building Permits

1330

US

Nov

Durable Gds & New Orders

1500

US

Nov

New Home Sales

1500

US

Dec

Richmond Fed

 View Economic Market Calendar

Topics: DJI, SP 500, Gold
More from: Kash Kamal