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

A / A / A

Global Market Wrap-Up - January 17, 2013

Thursday, January 17, 2013
Mark Hanna
U.S. stocks rallied on a combination of hopes for Bank of Japan easing early next week, a reduction in weekly jobless claims, and a jump in housing starts. A poor Philly Fed number was ignored. Talk that the GOP was looking to "kick the can" on the debt ceiling for a "short period" helped lift stocks to their biggest gains of the day mid afternoon before some late day selling. The S&P 500 and NASDAQ both gained 0.6%.
  • Jobless claims fell 37,000 to a seasonally adjusted 335,000, hitting a five-year low, according to the Labor Department. The four-week moving average declined to 359,250.
  • Housing starts jumped 12.1% to a 954,000-unit annual rate in December, accelerating to its fastest pace since June 2008, according to the Commerce Department.
  • The Philadelphia Fed’s manufacturing index went negative in January, slipping to -5.8 in January from +4.6 in December. Economists expected a +5.0 reading.
In government debt news:
  • The U.S. government’s net financial position worsened to a $16.1 trillion deficit in fiscal 2012 from $14.8 trillion the previous year, the Treasury Department said today in its annual assessment of the government’s assets and liabilities. Debt held by the public and accrued interest contributed $11.3 trillion to the deficit, up from $10.2 trillion in 2011, according to the report. The government budget deficit for the year ended in September 2012 was $1.09 trillion, the fourth-largest since World War II.
Crude oil prices rose 1.3%, to settle at $95.49 a barrel, a four-month high. Gold rose 0.45%, to settle at $1,690.80 an ounce while silver added 0.85% to $31.81.

The U.K.'s FTSE 100 index rose 0.5% to its highest closing level since May 2008. Germany's DAX rallied 0.6% and France's CAC-40 index advanced 1% to its highest close since July 2011.

China's Shanghai Composite Index dropped 1.1% while Japan's Nikkei added 0.1%. China will release Q4 GDP overnight:
  • China's gross domestic product is expected to rise 7.8% from a year earlier in the final quarter of 2012, up from 7.4% growth in the third quarter, according to the median forecast of 17 economists.

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.