Market Rebounds after Yesterday’s 266 Point Drop

by Marilou Long on April 16, 2013

in Earnings,Economic Indicators,Geopolitical,gold

The market fell 266 points yesterday on disappointment over China’s GDP growth, the weakness in gold and metals, and then the attack on Boston.  Gold fell over 125 points after being weak on Friday as well.  There was some speculation that some large funds were being forced to liquidate their gold holdings.

Housing starts were strong this morning at 7.0%, and earnings announcements so far have been good.  This is helping offset the weakness abroad.  The IMF cut growth estimates across the globe by 0.2% to 3.3%, but the outlook going forward shows stabilization in activity in advanced economies and acceleration in emerging economies.  From the linked report:

Global economic prospects have improved

again but the road to recovery in the

advanced economies will remain bumpy.

World output growth is forecast to reach

3¼ percent in 2013 and 4 percent in 2014. In

advanced economies, activity is expected to gradually

accelerate, starting in the second half of 2013. Private

demand appears increasingly robust in the United

States but still very sluggish in the euro area. In

emerging market and developing economies, activity

has already picked up steam.

 

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