The investors increased net-long positions by 19% to 56,084 futures and options in the week ended April 9, the first gain in three weeks, U.S. Commodity Futures Trading Commission data show. That contrasts with a 7.9% decline in bullish wagers across 18 U.S.-traded raw materials, which fell to a five-week low of 431,581 contracts. Holdings in agriculture dropped to the lowest since September 2006.
The turn in the gold cycle is quickening and investors should sell the metal, Goldman Sachs said in an April 10 recommendation that returned 5.4% in three days.
Ten-year U.S. Treasury yields decreased three basis points to 1.69%, the lowest level since Dec. 11. At least dozens of people were seriously injured in the marathon explosion, the Boston Globe reported on its Twitter feed.
The explosions “are giving Treasuries a boost and weighing on the stock market,” said Jason Rogan, director of U.S. government trading at Guggenheim Partners LLC, a New York-based brokerage for institutional investors. “Until we get news on exactly what this is you will see people jumping to buy safe assets on a quiet afternoon.”
Raw material producers lost 3.8% as a group and energy shares slid 3.3% to lead declines in all 10 of the 10 main industries in the MSCI World Index. Freeport-McMoRan Copper & Gold Inc. and Newmont Mining Corp. lost 8.3% and 6.7% to the lowest levels since 2010 and 2008, respectively.
The S&P 500 extended April 12’s 0.3% decline and Canada’s S&P/TSX Composite Index sank 2.7% to bring its two-day slump to 3.8%, its worst slide since October 2011. Commodity and energy producers make up 39% of the Canadian benchmark.
The Fed Bank of New York’s general economic index dropped to 3.1 this month from 9.2 in March. Readings exceeding zero signal expansion in New York, northern New Jersey and southern Connecticut. The median projection of 47 economists surveyed by Bloomberg was 7.
Sprint Nextel Corp. jumped 14%, the most since October, after Dish Network Corp. made an unsolicited $25.5 billion offer for the third-largest U.S. wireless carrier, topping a Softbank Corp. bid.
The Stoxx Europe 600 Index fell 0.7% as a gauge of basic-resources producers slid 4.8% to the lowest level since October 2011. Randgold Resources Ltd., a miner of the precious metal in West Africa, and Kazakhmys Plc, Kazakhstan’s biggest copper producer, lost more than 8% in London trading.
European Central Bank President Mario Draghi said monetary policy can’t address the root cause of the sovereign debt crisis and it’s up to governments to enact structural reforms.