Fairly Upbeat Data

World stocks dropped and the euro fell to a four-month low against the dollar on Tuesday after Greece said it would hold new elections and worries increased about its possible exit from the euro zone. Gold touched a 4-1/2-month low, with the euro's weakness unnerving investors over the profitability of holding euro-denominated assets. The political turmoil in Greece kept pressure on markets. Investors have been concerned that long-lasting problems in the euro zone and a likely recession will hit global growth. Greek politicians again failed to agree on a new government, nine days after an inconclusive election. After Greece's president said the country will hold new elections, the euro slumped and investors fled to the safe-haven dollar. The Greek news "triggered the fall through $1. ...

The UK Defies the Odds The big mover of the day was the pound after some better than expected labour market data and a surprise change in stance from one of the Bank of England's most noted doves. Adam Posen's shift towards the majority (i.e., the fence) from voting for more stimuli at the March meeting seemed to have the most impact on the market as it dramatically reduces the prospect of more QE in the near-term. It wasn't that long ago that the UK was expected to get more QE next month, those plans seem to have been shelved for now. The tone of the minutes was fairly upbeat compared to previous months. The Bank noted that funding conditions for the financial sector picked up strongly, and banks in the UK could issue healthy levels of debt in the public markets, suggesting they were ...

(Reuters) - Copper held near two-week peaks on Tuesday as positive manufacturing data in the United States and China kept investors' upbeat mood mostly intact in slow trading in Asia. Copper rose more than 2 percent on Monday, its biggest single-day gain since February, although thin trading volumes - with China shut for a public holiday - made it difficult for the industrial metal to extend the rally. Three-month copper on the London Metal Exchange slipped 0.4 percent to $8,610 a metric tonne (1.1023 tons) by 0357 GMT (11.57 p.m. EDT), its first loss in four sessions. But the session's high of $8,623 was in striking distance of a two-week high of $8,653 touched on Monday. Prices need to fall at least 5 percent to encourage more buying, said Dominic Schnider, executive director for ...

The Week Ahead Highlights FOMC minutes and US labour market in focus More QE for the UK Spain and other sovereign concerns RBA to hold for now Market Moves FOMC minutes and US labour market in focus The past week has seen a multitude of Fed speakers express their views on the economic outlook and monetary policy. Voting members Bernanke, Lacker, Lockhart, Duke, and Dudley all delivered speeches as well as non-voters Plosser, Fisher, and Rosengren. The main focus was on Chairman Bernanke who reiterated his concern that the economic recovery is "slower than we would have hoped" and that "the job market remains far from normal". The Fed Chairman noted the benefits of continued accommodation and kept open the option for further easing. Markets will look to the release ...

(Reuters) - Gold edged lower on Monday after equities reversed gains and the U.S. dollar rallied to the highest in more than a month, but some investors opted to stay on the sidelines ahead of a U.S. Federal Reserve meeting this week that could weigh on the precious metal. Gold has risen more than 9 percent this year, building on 11 consecutive years of increases, after the Federal Reserve said it would keep rates near zero until at least 2014. But the Fed may have to reconsider any plans for additional monetary easing when it meets on Tuesday if there are more signs that the U.S. economy is recovering. Spot gold hit an intraday high of $1,713.80 per ounce before slipping to $1,704.71 an ounce by 0707 GMT, down $3.32. On Friday, gold rose nearly 1 percent on higher crude oil and U.S. ...

The Weekly Bottom Line HIGHLIGHTS OF THE WEEK United States Stocks experienced a modest bout of volatility this week. The S&P500 declined 1.5% on Tuesday (the largest daily decline of 2012) only to rally and recoup the losses by the end of the week. Another important step was taken in the euro-zone this week when a Greek debt swap that will reduce the nation's debt burden by €100 billion received sufficient participation. While recent progress in the euro-zone is encouraging, Greece may still have to write down more debt in the future. Finally, the U.S. job market continues to hold its momentum. 227K new jobs were created in February, marking the third straight month of 200K+ job creation. Canada Canada shed 2,800 jobs in February, entirely erasing January's gain. ...

Weekly Economic and Financial Commentary : 04/03/2012 U.S. Review A Better Tone to the Data but Growth Remains Sluggish The economic data clearly have a better feel to them but there is no evidence of a sudden break out to the upside. Fourth quarter real GDP was revised up to a 3.0 percent annual rate and inflation was also revised slightly higher. Personal income came in slightly below expectations but upward revisions to previously published data put the saving rate at 4.6 percent in January, well above the earlier reported level of 4.0 percent. Manufacturing data were mixed, with orders down but purchasing managers' surveys remaining strong. Lots of Good News but Still Only Modest Growth We received a full complement of economic reports this week, providing new intel ...

The economy grew slightly faster than initially thought in the fourth quarter and a gauge of factory activity in the Midwest hit a 10 month-high in February, pointing to underlying strength in the economy. Gross domestic product expanded at a 3 percent annual rate, the quickest pace since the second quarter of 2010, the Commerce Department said on Wednesday in its second estimate. The reading, which was up from the 2.8 percent pace the government reported last month and reflected modest upward revisions to almost all components of GDP, added to the recent run of fairly upbeat economic reports. The tone of the GDP report was further bolstered by upward revisions to income and savings data, which should help support consumer spending in the face of rising gasoline prices. "Growth is ...

(Reuters) - U.S. manufacturing output rose in January and a gauge of factory activity in New York state hit a 1-1/2-year high in February, showing a solid underpinning for the economic recovery. The firmer tone was also in evidence in another report on Wednesday that showed optimism among home builders approached a five-year high this month, a good omen for the struggling housing market. The reports added to a run of fairly upbeat data, even though overall industrial production was flat last month as unusually mild winter weather weighed on utility output. "What we are seeing here is confirmation of the positive momentum we have seen in the economy over the past few months," said Millan Mulraine, senior macro strategist at TD Securities in New York. Factory production increased 0.7 ...