|Global Market Wrap-Up - Global Market Wrap-Up|
A weaker than expected ISM Services number caused weakness in most US markets; this reinforces a recent pattern where ISM Manufacturing has shown relative strength whereas Services, which make up a much larger part of the US economy has lagged. Despite trillions of money poured into the economy via federal government & Federal Reserve. While today's number was over 50 (signaling expansion) it was barely so.
The S&P 500 fell 0.6% while the NASDAQ was able to snare a small gain of 0.1%. All eyes will remain on Friday's labor reports in the US.
Sovereign debt issues in Europe continue to cause consternation; this time it was Portugal, joining Greece, at the forefront.
This caused the dollar to strengthen, which of course led to weakness in many risk assets, including commodities - as has been the inverse relationship for the better part of 2+ years. Crude oil dropped 73 cents to fall just under $77, gold fell $5.60 while silver gave back roughly 1% to finish at $16.58.
European indexes were weak with losses in Britain (-0.6%), Germany (-0.7%) and France (-0.5%).
Asian stocks rebounded to post across the board gains with excess strength in China (+2.4%), India (+2.1%), and Hong Kong (+2.2%). Japan had a modest gain of 0.3%.
Aside from being a daily contributor to Euro Pacific Capital, Mark also maintains the website Fund My Mutual Fund.
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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.