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Global Market Wrap-Up - January 22, 2013

Tuesday, January 22, 2013
Mark Hanna
U.S. stocks continued to rally Tuesday after a one day holiday, even as economic data released was nothing to write home about. The S&P 500 gained 0.4% and the NASDAQ 0.3%; investors seemed more focus on earnings reports rather than macro data. After the bell both Google (GOOG) and IBM (IBM) reported and satisfied investors; both stocks were up 4-5% in the after hours session.
  • The National Association of Realtors said existing home sales surprisingly declined in December to an annual rate of 4.94 million from the previous month.
  • The Richmond Fed index plunged to -12 in January from last months' reading of 5. The new orders sub-index plummeted to -17 from +10 in December.
Oil gained 0.7% to $96.24, while gold added 0.4% to $1693.20 and silver popped 0.8% to $32.18.

Britain was fractionally lower while Germany fell 0.7%, and France dropped 0.6%.
  • The German ZEW indicator for economic sentiment jumped by 24.6 points to a level of 31.5 in January, exceeding expectations for a result of 9.5.
Japan dropped 0.35% and China 0.6%. As expected the Bank of Japan moves to "unlimited QE" as the world's central bankers race to trash their currencies in a "race to the bottom", and went to a 2% inflation rate under pressure from their newly elected Prime Minister. However, markets had been anticipating this for weeks so the Pavlovian response to central banker easing was short lived. (The yen had already fallen 10% the past two months)