<img src="/images/nav_ra.png" />

A / A / A

Global Market Wrap-Up - December 14, 2012

Friday, December 14, 2012
By: 
Mark Hanna
U.S. stocks fell Friday as most people's attention was on the tragedy in Connecticut. The S&P 500 fell 0.4% and the NASDAQ 0.7%. Apple (AAPL) had another miserable session, falling 3.8% and taking the NASDAQ with it. For the week the S&P 500 fell 0.3% and the NASDAQ 0.2%. The main news of the day was a huge surge in the Chinese stock market as a preliminary purchasing managers' index rose to a 14 month high. The "official" inflation rate dropped for the first time in 6 months:
  • The Labor Department said its Consumer Price Index dropped 0.3% last month as a sharp decline in gasoline prices offset increases in other areas. It was also the largest drop since May and followed a 0.1% gain in October. The core CPI, which excludes food and energy prices, edged up 0.1% after rising 0.2% in October. Food prices gained 0.2%. Gasoline prices tumbled 7.4%, the largest drop since December 2008.
  • The Federal Reserve reported that industrial production jumped 1.1% in November, although economists said the larger-than-expected increase was due to Hurricane Sandy.
Oil gained 1.0% to $86.73, gold was up fractionally to $1697.00, and silver dropped 0.2% to $32.30. British shares fell 0.1%, German shares dropped 0.2%, while French shares were fractionally higher.
  • A survey of purchasing managers in the euro area edged up to 47.3 in November from 46.5 in October.
China gained 4.3% while Japan fell 0.05%.
  • The HSBC flash purchasing managers' index for December rose to 50.9, a 14-month high and the fifth straight monthly gain. A figure above 50 indicates that growth is accelerating, while one below 50 shows slowing growth.
  • Most sub-indexes improved with the exception of output and new export orders, which dipped, possibly reflecting softer end-of-year orders. Encouragingly, a sub-index on new orders rose for the fifth month in a row to 52.7, its highest level since April 2011. A sub-index tracking employment rose to its highest level since February.

Check the background of our investment professionals on FINRA’s BrokerCheck.

Investing in foreign securities involves risks, such as currency fluctuation, political risk, economic changes, and market risks. Precious metals and commodities in general are volatile, speculative, and high-risk investments. As with all investments, an investor should carefully consider his investment objectives and risk tolerance as well as any fees and/or expenses associated with such an investment before investing. International investing may not be suitable for all investors.

Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. The fluctuation of foreign currency exchange rates will impact your investment returns. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money.

Our investment strategies are based partially on Peter Schiff's personal economic forecasts which may not occur. His views are outside of the mainstream of current economic thought. Investors should carefully consider these facts before implementing our strategy.