‘Met With Buyers’
Today’s advance trimmed the S&P 500’s retreat from a record on April 11 to about 1.3%.
“Over the last few weeks, every down move has been met with buyers that have come in,” Brad Sorensen, director of market and sector analysis at San Francisco-based Charles Schwab Corp., said by telephone. His firm has $2.08 trillion in client assets. “People on the sidelines are waiting for a pullback to get into the market that they’ve missed for the past six months. We’re seeing more of that today.”
Housing starts climbed 7% to a 1.04 million annual rate, the most since June 2008, following a revised 968,000 annual rate in February that was larger than previously reported, according to Commerce Department figures. The median estimate of 80 economists surveyed by Bloomberg called for 930,000. Another report showed industrial production increased 0.4%, twice as much as forecast.
The cost of living in the U.S. declined in March for the first time in four months as cheaper gasoline and clothing kept inflation in check. The consumer-price index dropped 0.2% after a 0.7% jump in February, the Labor Department said today. The median forecast in a Bloomberg survey called for no change. The core measure, which excludes volatile food and energy costs, rose 0.1%, less than forecast.
The Stoxx 600’s decline extended the drop over three days to 2.3%. Michael Page International Plc slid 5% after the U.K. recruiter reported lower profit. LVMH Moet Hennessy Louis Vuitton SA retreated 3.8% as revenue growth slowed. Danone rallied 2.2% as the food company reported first-quarter sales growth that beat analysts’ estimates.
Confidence in Germany’s outlook fell more than economists forecast in April, according to the ZEW Center for European Economic Research.
The MSCI Emerging Markets Index rose for the first time in three days, adding 0.8%. Benchmark gauges in South Africa, Indonesia and India gained at least 1%.
India’s Sensex index jumped 2.1%, the most since September, on speculation declining commodity prices will help the government curb a record current-account deficit.
European Union emission permits fell the most ever after the European Parliament rejected a plan to reduce an oversupply in the world’s biggest carbon market. Carbon prices for December dropped as much as 45% to 2.63 euros a metric ton on ICE Futures Europe in London.
The yen declined 2% to 128.70 per euro after surging 3.5% during the previous two days. Japan’s currency dropped 0.9% to 97.63 per dollar. The dollar fell 1.1% to $1.3184 per euro, after gaining 0.6% yesterday. New Zealand’s dollar strengthened for the first time in three days, climbing 1.1% to 85.01 U.S. cents.
German 10-year bund yields rose three basis points to 1.28% and the rate on similar-maturity Italian bonds fell three basis points to 4.31%.
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