Gold Rebound Leads Stock Rally (Bloomberg)
Today, gold bounced back from its worst slump in thirty years, leading U.S. stocks to rally. In other market action, Treasuries fell and housing starts did better than expected. “The outlook for gold for us is really positive in the long term,” Catherine Raw, a fund manager in London at BlackRock, said. “The probability of inflation over the next five years is higher not lower than it was last year. Other things such as cash losing money, the Cyprus event, savings being targeted means people are looking for alternatives.”
News on Boston Explosions Could Hit Market (CNBC)
Although stocks rose today in the aftermath of yesterday’s attack on the Boston Marathon, information which investigators uncover on the culprit may impact the market. “It depends on what it is…If it’s just one disgruntled soul then you pray for the people who were affected, but know life will go on,” said Ward McCarthy, chief financial economist at Jefferies. “If there’s some kind of cell here or something, and this is planned to be the first of a series of things then it’s going to add to market anxieties.”
Yen Resumes Decline (Reuters)
While the yen increased in value recently due to its status as a safe haven for investors fleeing from falling gold, the precious metal’s rise today caused the Japanese currency to lose those gains. The yen fell against both the dollar and the euro, as Japan’s aggressive easing policies drove the yen’s value down. “The fundamental picture still remains supportive of a weaker yen going forward as the recent rebound over the last couple of days is unlikely to prove sustainable,” said Lee Hardman, currency economist at BTMU.