Getting To A Normal Level

Stocks fell on Monday as investors dealt with the one-two punch of worsening political upheaval in the euro zone and the possibility that China's economy may be softening more than previously thought. The S&P 500 finished lower for the fourth day of five to close at its lowest level since February, adding fuel to worries of a coming market correction. Economically sensitive shares, including banks and energy companies, paced the decline. Exxon Mobil Corp (XOM.N) lost 1.2 percent to $82.12. The NYSEArca oil index .XOI fell 1.8 percent. State television in Greece reported the president of the fiscally beleaguered country will continue talks on forming a coalition government, although Socialist leader Evangelos Venizelos said on Monday he was not optimistic that a government could be ...

U.S. Review Look Past the Monthly Volatility and See the Trend This week of economic releases painted a somewhat mixed picture, but the underlying trend still reflects an economy that is growing at a modest pace. The milder-than-usual winter likely brought some activity forward and below-consensus readings are due in part to payback. Housing starts, existing home sales and industrial production all posted disappointing readings in March that are likely not indicative of the underlying trend. Headline retail sales, however, came in more than double the consensus estimate in March, ending the first quarter on a positive note. Early Spring Brings Payback Period The full week of economic releases painted a somewhat mixed picture, but the underlying trend still reflects an economy ...

(Reuters) - - Copper steadied near $8,000 a metric ton (1.1023 tons) on Wednesday after the previous session's 4-percent plunge, but traders said the twin concerns of slowing U.S. and Chinese growth could soon prompt another bout of selling. Volume was again heavier than normal as another wave of selling swept through, dragging copper prices down to three-month lows before a strong rebound in U.S. and European equities provided some support and allowed metal consumers to step back in to buy near the lows, analysts said. "Copper is following with one eye absolutely peeled to the stock market," said Dennis Gartman, publisher of The Gartman Letter. "As goes the stock market, so shall go the base metals." Copper's positive correlation with the S&P 500 Index .SPX stood at its strongest link ...

(Reuters) - Global stocks dropped more than 1 percent and the euro fell to a 3-week low against the dollar on Wednesday a day after U.S. central bank meeting minutes dented hopes for more economic stimulus and a Spanish debt auction drew weak results. Gold prices hit their lowest since early January, while U.S. bonds rallied as losses in the stock market enhanced the bid for safe-haven U.S. government debt. Comments from European Central Bank President Mario Draghi that the euro zone's economic outlook is subject to downside risks related to the debt crisis and commodity prices further weighed on the euro, as well as gold. Draghi's comments came in a news conference after the ECB announced it was holding interest rates at record lows, as widely expected. The Federal Reserve's minutes ...

The Weekly Bottom Line : 16/03/2012 HIGHLIGHTS OF THE WEEK United States Market participants are clearly trading on what everyone else seems to be feeling: the recovery is back. But the Fed, for its part, is not yet willing to admit that the economy has entered a new, stronger phase. Though the quickening pace of job growth is a positive sign, disposable income growth is still stagnant, and the recent run-up in commodity prices threatens to erode consumer spending growth. Europe's troubles haven't gone away. If market sentiment get's too far ahead of itself, the Fed may be tempted to fight back with another round of asset purchases. But if rising borrowing costs are a product of a stronger recovery then the Fed should be less concerned. Increased spreads may actually be ...

As the credit crisis recedes and underwriting standards begin to loosen, bonds backed by consumer debt such as auto loans, credit card payments, and student loans are becoming increasingly risky, Moody's said on Thursday. Relaxed underwriting standards, more complex structures, and new untested market participants are just three of the trends suggesting that risk is on the rise for some sectors of the asset-backed securities market, Moody's said in a report. Even in the residential mortgage sector, which has not seen a significant return of private-label securitization, riskier non-prime, non-traditional mortgage originations are appearing. With credit standards slipping in asset classes such as subprime auto loans, and risky crisis-era structural features showing up in transactions, ...

The Federal Reserve on Tuesday provided few clues on the prospects for further monetary easing, offering just a slight upgrade to its economic outlook while restating concerns about the high level of unemployment. The central bank said it expects "moderate" growth over coming quarters with the unemployment rate declining gradually; in January, it said it expected "modest" growth. It also said a recent spike in energy costs would likely push up inflation, but only temporarily. Over a longer stretch, the Fed said inflation would likely run at or below the its 2 percent target. "Labor market conditions have improved further; the unemployment rate has declined notably in recent months but remains elevated," the central bank said in a statement after a one-day meeting. U.S. stocks held ...

(Reuters) - Families took on more debt in late 2011 for the first time in 3-1/2 years but a rise in after-tax incomes left consumers in better shape to spend. Other data on Thursday showed the number of Americans filing for jobless benefits rose last week, but not enough to change perceptions the labor market was strengthening. The economy is still limping back from a financial crisis that wreaked havoc on household finances and put millions of people out of work. However, rising incomes eased the pinch in the fourth quarter. The ratio of household liabilities to after-tax income - a broad measure of the debt burden - fell to 117.5 percent, its lowest level since 2004. Economists are unsure how much more that debt burden must decline for consumers to feel normal again, but Thursday's ...

(Reuters) - The euro and commodity currencies held on to overnight gains in Asia on Friday after Greece moved closer to securing fresh funds needed to avoid a messy debt default. But further gains will depend on China's consumer inflation data due around 0130 GMT and industrial output at 0530 GMT, which could either support or undermine the improving risk sentiment. The single currency stood at $1.3274, having risen some 1 percent on Thursday after Greece looked close to getting 95 percent agreement on its bond swap offer to private creditors to lighten its debt burden. This saw the greenback fall to its lowest level this week against a basket of major currencies .DXY. The greenback though, managed to rise against the safe-haven yen, climbing to 81.55 from Thursday's low of 81.06. ...