Gold Futures Approach $1,300 to Post Longest Rally in 11 Months

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Gold futures approached $1,300 an ounce to post the longest rally in 11 months on speculation that the European Central Bank will boost economic stimulus, increasing demand for the precious metal as a haven.

Assets in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, last week rose 3.3 percent, the most since May 2010. Futures posted the biggest weekly gain in 18 months after the Swiss central bank unexpectedly abandoned its currency peg against the euro. The International Monetary Fund on Monday made the steepest cut to its global-growth outlook in three years.

The metal on Tuesday climbed to a 20-week high amid speculation that stagnant foreign economies will prompt the Federal Reserve to wait longer before raising interest rates. ECB President Mario Draghi will probably announce a 550 billion-euro ($638 billion) program of quantitative easing this week, economists said in a Bloomberg survey.

Gold futures for February delivery climbed 1.4 percent to settle at $1,294.20 at 1:39 p.m. on the Comex in New York. Earlier, the price touched $1,297.20, the highest for a most-active contract since Aug. 28. The metal advanced for a seventh straight session, the longest rally since Feb. 18.

Source : Bloomberg

Dollar at Almost 10-Year High on Diverging Policy; Loonie Drops

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A gauge of the dollar approached a 10-year high on speculation the U.S. is moving toward raising interest rates as policy makers in Europe and Japan meet to discuss further measures to bolster their stagnant economies.

The U.S. currency climbed for a third day versus the yen as the Japanese central bank considers expanded monetary easing at a policy meeting ending tomorrow. The euro was at almost the lowest level in 11 years before the European Central Bank meets this week amid bets it will announce sovereign-bond buying under quantitative easing. The International Monetary Fund cut growth forecasts almost everywhere except the U.S. Canada™s dollar plunged to an almost six-year low. The Swiss franc gained.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, climbed 0.5 percent to 1,145.74 as of 2:15 p.m. New York time. It closed at 1,147.54 on Jan. 8, the highest in data going back to 2004.

The dollar appreciated 1 percent to 118.80 yen. It climbed 0.5 percent to $1.1549 per euro after rising to $1.1460 on Jan. 16, the strongest level since November 2003. The shared currency gained 0.6 percent to 137.21 yen.

Source: Bloomberg

U.S. Stocks Advance as Tech Rally Offsets Global Growth Concern

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U.S. stocks rose, with the Nasdaq 100 Index rallying as gains from Apple Inc. to Netflix Inc. helped offset concerns that global growth is slowing.

Yahoo! Inc., Micron Technology Inc. and Apple jumped more than 2.3 percent to lead technology shares. Netflix surged 3.4 percent before reporting results. Delta Air Lines Inc. climbed 7.3 percent after earnings beat projections. Johnson & Johnson tumbled 2.6 percent after forecasting lower earnings in 2015 as competition cuts into revenue for some of its best-selling drugs. A gauge of homebuilders retreated 3 percent, after plunging almost 7 percent last week.

The Standard & Poor™s 500 Index gained 0.2 percent to 2,022.53 at 4 p.m. in New York, after an earlier decline of 0.7 percent. The Dow Jones Industrial Average added 4.5 points, or less than 0.1 percent, to 17,516.07. The Nasdaq 100 Index gained 0.7 percent. Trading in S&P 500 companies was 19 percent above the 30-day average for this time of the day. U.S. exchanges were closed yesterday for Martin Luther King Day.

The S&P 500 slipped 1.2 percent last week, even with a 1.3 percent rally on Friday, as falling oil, shrinking earnings estimates and concern that slowing global growth will hurt the U.S. economy led to selling. The index is down 1.8 percent for the year.

Source: Bloomberg

U.S. Stocks Fall on Weaker Outlook for Earnings, Global Growth

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U.S. stocks fell as results at companies from Morgan Stanley to Johnson & Johnson disappointed investors and the International Monetary Fund lowered its outlook for global growth.

Johnson & Johnson tumbled 3.4 percent after forecasting lower earnings in 2015 as competition cuts into revenue for some of its best-selling drugs. Morgan Stanley slipped 1.5 percent after profit missed analysts™ estimates. Energy shares declined 0.8 percent as oil futures tumbled 3.9 percent. A gauge of homebuilders retreated 3.1 percent, after plunging almost 7 percent last week.

The Standard & Poor™s 500 Index dropped 0.6 percent to 2,007.22 at 12:01 p.m. in New York. The Dow Jones Industrial Average lost 139.61 points, or 0.8 percent, to 17,371.96. The Russell 2000 Index tumbled 1.2 percent. Trading in S&P 500 companies was 20 percent above the 30-day average for this time of the day. U.S. exchanges were closed yesterday for Martin Luther King Day.

The S&P 500 slipped 1.2 percent last week, even with a 1.3 percent rally on Friday, as falling oil, shrinking earnings estimates and concern that slowing global growth will hurt the U.S. economy led to selling. The index is down 2.5 percent for the year.

Source : Bloomberg

Europe Stock Gain Fourth Day to Extend Highest Level Since 2008

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European stocks advanced for a fourth day, extending their highest level in seven years, amid speculation that the European Central Bank will announce a plan for quantitative easing this week.

The Stoxx Europe 600 Index added 0.8 percent to 355.96 at the close of trading, after earlier rising as much as 1.2 percent. Banks and miners led gains among 19 industry groups. The benchmark gauge has rallied 4.8 percent in the four days since the Swiss central bank unexpectedly abandoned its currency peg against the euro, a move that increased speculation of a government-bond buying program from the ECB.

ECB President Mario Draghi will make his biggest push yet to steer the euro area away from deflation by introducing quantitative easing at the Jan. 22 meeting, according to 93 percent of respondents in a Bloomberg News survey. The ECB president will probably announce a 550 billion-euro ($639 billion) bond purchase program, economists say.

Source : Bloomberg