“Global Stocks HIGHER”: Reuters

The title of a recently released Reuters article is “Global stocks HIGHER, safe-haven U.S. debt SLIDES” (Web-site/URL: http://www.reuters.com/article/2013/01/24/us-markets-global-idUSBRE88901C20130124).

“World stock markets ROSE on Thursday (January 24 2013) and U.S. stocks EXTENDED A SIX-DAY RALLY, SAILING THROUGH the headwind of a revenue miss from Apple, while the yen resumed its DROP and oil prices GAINED.

“The broad S&P 500 and the Dow Jones industrials stock market indices both ADVANCED. The Nasdaq composite index was lower, but the entire loss – and more – was due to the drag from a 9.8 percent drop in the value of Apple”. Well “a 9.8 percent drop” is a HUGE “drop”.

“MSCI’s world equity index .MIWD00000PUS rose 0.28 percent and Europe’s FTSE Eurofirst 300 index .FTEU3 gained 0.25 percent”.

“Business surveys released on Thursday showed GROWTH in Chinese manufacturing ACCELERATED to a two-year high in January (2013) and A BUOYANT Germany was leading the euro zone TOWARD recovery. BUT hey also revealed France was SLIDING BACK INTO recession”. “toward recovery” is where WE WANT TO GO whereas “sliding back into recession”, of course, is NEVER a good thing.

“The Dow Jones industrial average DJIA was UP 79.69 points, or 0.58 percent, at 13,859.02. The Standard & Poor’s (S&P) 500 Index SPX  was UP 5.33 points, or 0.36 percent, at 1,500.14. The Nasdaq Composite Index .IXICwas down 5.09 points, or 0.16 percent, at 3,148.58.

“The stock market’s continued strength and news that the number of Americans filing new claims for jobless benefits HIT A FIVE-YEAR LOW last week weighed on safe-haven U.S. debt”.

“The benchmark 10-year Treasury note, up 4/32 in price before the jobless claims report, subsequently FELL 10/32, yielding 1.8631 percent, as investors moved funds into stocks”.

According to Todd Colvin, “senior vice president of global institutional sales with R.J. O’Brien & Associates in Chicago”, “It’s a REACH FOR return in the equities market”implying that this “return” MIGHT NOT BE THERE.

According to Marco Valli, “chief euro zone economist at UniCredit”,.”The main story is that the pace of recession is clearly EASING. REALLY? This is what Valli BELIEVES/this is his INTERPRETATION (Web-site/URL: http://www.youtube.com/watch?v=NgnAY_eXYbI).

According to Ken Wattret, “chief Euro zone economist at BNP Paribas”, “The current gap between the German and French composite PMI indices IS UNPRECEDENTED“.

Finally, “Traders cited reports quoting Deputy Economy Minister Yasutoshi Nishimura as saying the yen’s decline IS NOT over and a dollar/yen level of 100 WOULD NOT be a concern“. According to Bob Lynch, “chief currency strategist at HSBC in New York”, “(Nishimura) represents another official voice favoring further yen WEAKNESS and the remarks probably supported the latest BOUNCE in (the) dollar/yen (exchange rate), which began overnight” (January 23, 2013)”.

So, “US stocks (have extended) A SIX-DAY RALLY. IS THE ECONOMY RECOVERING? This is surely something that we’ll have to watch closely/keep an eye on.

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