Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

Top things I learned about life while day trading millions

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

A Saudi-Iran oil war could break up OPEC
Advertisement
more Volatility>>

Volatility

Implied vs. Realized Volatility & the VIX
more Financials>>

Financials

Making drones work for you
more Financials>>

Financials

Perspective: S&P 500 short side off highs

Advertisement

Dow Average rises to record, metals climb on economic stimulus

By Stephen Kirkland and Inyoung Hwang, Bloomberg

March 5, 2013 • Reprints

‘Main Driver’

“Monetary easing has been a main driver of equity markets,” Fabrice Seiman, co-chief executive officer of Lutetia Capital in Paris, who helps oversee about $200 million, said in a phone interview today. “When those accommodative policies will be withdrawn, they will be withdrawn only gradually. Equities at the moment offer you capital appreciation but also a dividend yield.”

Dow Valuation

While the Dow has more than doubled in the four years since its bear-market low, its valuation remains about 19% less than the price-earnings ratio at the previous peak and about 14% below its 20-year average. Bulls say that’s a signal stocks have room to keep rallying, while to bears it shows a lack of confidence in earnings growth and concern over the Fed’s ability to continue spurring the economy. At 2.5%, its dividend yield is higher than the yield on 10-year Treasuries, which rose 2 basis points to 1.90% today.

American Express Co., Caterpillar Inc. and Home Depot Inc. have led the Dow’s rally since its 2009 low, climbing more than 275% as the economy recovered from the worst recession in seven decades. Hewlett-Packard., the largest personal computer maker, is the only stock still in the 30-company gauge to fall since March 9, 2009.

The Stoxx 600 climbed to its highest level since June 2008. A gauge of banks contributed the most to the equity benchmark’s rally as Standard Chartered Plc gained 3.2% after reporting pretax profit for 2012 that exceeded analysts’ estimates. Profit set a record for a 10th consecutive year. Glencore International Plc rose 5.7% after saying it will complete the takeover of Xstrata Plc by April 16. Xstrata added 6.8% after also posting net income that beat estimates.

Serco Group Plc surged 8.9% after the operator of London’s Docklands Light Railway increased its dividend by 20%.

Service, Retail Data

European equities also rallied after euro-area services output shrank less than initially estimated in February and retail sales rose the most in three years in January.

The yield on Portugal’s 10-year bond fell 23 basis points to 6.16%. Spain’s 10-year bond yield fell for a fifth day, dropping five basis points to 5.04%. German bund yields climbed three basis points to 1.45% amid reduced demand for Europe’s benchmark government debt.

European finance chiefs may next month commit to giving Ireland and Portugal more time to repay bailout loans, Economic and Monetary Affairs Commissioner Olli Rehn said yesterday.

The cost of insuring against default on corporate debt also declined, with the Markit iTraxx Europe index of credit-default swaps linked to 125 investment-grade companies falling four basis points to 112.6, the lowest in more than a week.

Australia’s currency rallied 0.5% to $1.0247 after the Reserve Bank kept interest rates on hold.

Commodities

The S&P GSCI gauge rose the most since Feb. 25 after falling 2.8% the past five days. West Texas Intermediate oil rose 0.8% to $90.86 a barrel after yesterday dipping below $90 for the first time this year. Brent crude traded in London jumped 1.5% to $111.73 as a pipeline system shut after a platform leak, boosting the European benchmark. Copper gained for a second day. China is the biggest buyer of energy and industrial metals.

China will keep its economic growth target at 7.5% for this year and plans a 10% jump in fiscal spending, the government said during the start of the National People’s Congress today.

The MSCI Emerging Markets Index rose 0.9%, snapping a two-day retreat. The Shanghai Composite Index rallied after falling 3.7% yesterday, its biggest decline since August 2011. India’s Sensex climbed 1.4%, the most in three months, while Russia’s Micex index added 1.4% and Brazil’s Bovespa gauge decreased 1%.

Bloomberg News

<<< previous
Page 2 of 2

About the Author

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Related Articles
Making drones work for you
Daily Price Action: S&P 500
Powell pontificates, but pulls his punches as predicted
Is S&P at major top? Major Market Ranges for the Week of Aug. 27
Daily Price Action: E-mini S&P 500
Previous
Canada dollar weakens on speculation BOC may signal rate easing
Next
The Fed’s 100th year birthday
Related Terms
US Federal Reserve 8527Gold 7715oil 6597bank 6455Bloomberg 5254energy 3806Metals 3360European Central Bank 3208financials 2975stocks 2123Standard & Poor 2008Congress 1894equities 1690Federal Government 965retail sales 850Stock indexes 843Janet Yellen 621New Jersey 590Institute for Supply Management 296Dow Jones 192the U.S. central bank 150Caterpillar Inc. 115Standard Chartered Plc 76Hewlett-Packard 67Stifel Nicolaus & Co. 64non-manufacturing index 62Home Depot Inc. 61finance chiefs 48Cisco Systems Inc. 44Olli Rehn 41Xstrata Plc 40American Express Co. 35United Technologies Corp. 32Park 30Glencore International Plc 29J.C. Penney Co. 27Internet bubble 21Stoxx Europe 20Kevin Caron 9BMC Software Inc. 5personal computer maker 5American Apparel Inc. 2Lutetia Capital 1Serco Group Plc 1Fabrice Seiman 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images