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.
