Broadgate: Market News 2/4
2 April 2012
Euro-area finance ministers decided in Copenhagen on March 30 to increase rescue funds for indebted nations, bringing the size of the firewall to 800 billion euros ($1.07 trillion) against the region’s debt crisis. The 17-nation euro economy is expected to contract for three consecutive quarters through September, according to the median estimates of 15 economists.
Crude oil declined 3.6 percent in New York trading, retreating for a third consecutive week. Bearish bets on natural gas increased to the most since December as prices slumped 6.6 percent and reached their lowest in a decade.
Japanese and Australian stock futures gained as stronger-than-forecast U.S. consumer sentiment and spending boosted optimism in the world’s largest economy. “U.S. economic data has been solid and that’s helping to buoy confidence in the global economy,” said Toshiyuki Kanayama, a Tokyo-based market analyst. He predicted that investors will buy Chinese-related shares today.
Gains in S&P 500 futures indicated that U.S. stocks may rise for a second day when trading begins.
Goldman’s commodity research team, led by Jeffrey Currie in London, said it was reducing the three-month futures recommendation because prices have already reached targets. Although raw materials may drop or be little changed in the near term, they probably will gain 10 percent over the next 12 months, according to the analysts. Goldman’s target for crude oil is $123.50 a barrel, 20 percent higher than the close on March 30, and gold may reach $1,940 an ounce, up 16 percent.
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