Dollar Trades Near 12-Year High Versus Euro on China Slowing

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The dollar traded near a 12-year high against the euro as signs of cooling in China’s economy highlighted the diverging fortunes of the world’s two biggest economies.

The greenback maintained its strength before a report Tuesday forecast to show U.S. retail sales increased by the most in a year, bolstering the case for the Federal Reserve to raise interest rates in 2015. Australia’s dollar led commodity currencies lower on Monday as a slump in trade growth amplified concern China will report later this week its slowest economic output since the global recession.

The U.S. currency was little changed at $1.0572 per euro as of 8:05 a.m. in Tokyo, after gaining 0.4 percent Monday. It reached $1.0458 on March 16, the strongest level since January 2003. The greenback traded at 120.08 yen from 120.13.

Source: Bloomberg

Gold Falls Fourth Time in Five Days as Rising Dollar Cuts Demand

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Gold futures declined for the fourth time in five sessions after a rise in the dollar cut demand for the metal as an alternative investment.

The Bloomberg Dollar Spot Index climbed to a three-week high as signs of a slowdown in China highlighted the diverging fortunes of the world’s two biggest economies, enhancing the appeal of the U.S. currency.

Gold has posted two straight monthly declines after the greenback rose to the highest since at least 2004 against a basket of 10 currencies and concern mounted on prospects for higher U.S. borrowing costs. Speculation that global central banks will push for more economic stimulus helped limit declines in bullion on Monday.

On the Comex, gold futures for June delivery slid 0.4 percent to settle at $1,199.30 an ounce at 1:45 p.m. in New York.

Fed policy makers were split at last month’s meeting on when to begin raising rates. Rising rates curb gold’s appeal because the metal generally only offers returns through price gains, prompting investors to favor assets with better yield prospects such as equities and bonds.

Silver futures for May delivery slid 0.6 percent to $16.291 an ounce on the Comex. The metal has posted two straight weekly declines.

Source: Bloomberg

U.S. Stocks Decline as GE Retreat Weighs on Industrial Shares

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U.S. stocks fell as General Electric Co. retreated from a six-year high, leading industrial companies lower while investors awaited this week’s corporate earnings reports.

The Standard & Poor’s 500 Index declined 0.4 percent to 2,092.57 at 4 p.m. in New York. The Nasdaq Composite Index slipped 0.2 percent, erasing an earlier gain that took it above 5,000 for the first time in three weeks.

The Nasdaq Composite climbed earlier Monday to within 25 points of its record. Last month the index closed above 5,000 three times, its first forays past that level since March 2000. It stalled within seven points of its dot-com-era record on March 20, before dropping 2.5 percent to the end of the month. It has rebounded about 2 percent in April after posting its ninth consecutive quarterly gain, its longest streak ever.

The Dow traded Friday within 1.3 percent of a record hit in March, while the S&P 500 pulled within 1 percent of its record. With valuations near their highest level in more than five years, investors are looking to corporate profits for further clues on the strength of the U.S. bull market that hasn’t seen a 10 percent correction since 2011.

Source : Bloomberg

Nasdaq Composite Tops 5,000 as Netflix Leads Internet Advance

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The Nasdaq Composite Index rose above 5,000, approaching its all-time high as Netflix Inc. led a rally in Internet stocks while investors awaited this week’s corporate earnings reports.

Netflix added 6.3 percent after an analyst upgrade, and Facebook Inc. increased 1.9 percent as the Nasdaq Internet Index rose to its highest level in more than a month. Gilead Sciences Inc. gained more than 1.2 percent as a gauge of biotechnology stocks climbed.

The Nasdaq Composite rose 0.4 percent to 5,013.47 at 12:23 p.m. in New York to climb back within 0.7 percent of its March 2000 high. The S&P 500 was little changed at 2,102.06 after erasing earlier gains of as much as 0.3 percent. The Dow Jones Industrial Average gained 6.72 points, or less than 0.1 percent to 18,064.37.

The Nasdaq Composite last month closed above above 5,000 three times, its first forays past that level since March 2000. It stalled within seven points of its dot-com-era record on March 20, before dropping 2.5 percent to the end of the month. It has rebounded 2.3 percent in April after posting its ninth consecutive quarterly gain, its longest streak ever.

Source : Bloomberg

European Stocks Extend Record With Spanish Shares at 5-Year High

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European stocks advanced for a fifth day, with Spanish equities jumping to their highest levels since January 2010.

The Stoxx Europe 600 Index added 0.2 percent to 413.63 at the close of trading in London, after rising as much as 0.3 percent. Gains in Telefonica SA and Banco Santander SA pushed the IBEX 35 Index up 1 percent for one of the biggest jumps in western-European markets. The region’s miners fell for the first time in five days as China’s exports unexpectedly slumped the most in more than a year, raising questions over the durability of global demand.

The Stoxx 600 rallied the most since January last week, surpassing an all-time high reached in 2000. Economic data beating forecasts by the most in two years and a push by the European Central Bank to stimulate growth have sent the gauge up 21 percent this year.

The gains propelled the value of global equities above $70 trillion for the first time. Benchmark stock gauges of Denmark, Portugal, Italy and Germany jumped the most among developed markets this year, climbing more than 25 percent. The Standard & Poor’s 500 Index was among the worst performers.

Source: Bloomberg