By Austin Kiddle, Resource Investor:
After rebounding for three consecutive days, the U.S. Comex gold futures fell 0.87% on Tuesday and ended at $1,408.08. As of Wednesday Asian morning, the gold futures surged close to 1%. The Dollar Index traded above 83 on Tuesday and was up 0.40% in the past two days. The S&P 500 index and the Euro Stoxx 50 Index shot up 1.51% and 3.41% this week after falling 2.11% and 2.21% respectively last week. The CRB Commodity Index continued to fall in the past two days by 0.77% after dropping 1.40% last week.
Grimmer Global Growth Outlook
China kicked off with a weaker-than-expected April flash manufacturing PMI at 50.5 compared to 51.6 in March. According to Deutsche Bank, the slower growth is related to the anti-corruption campaign, the policy tightening in the real estate sector and the onset of the bird flu crisis. However, investment should reaccelerate in 2H of 2013. The April Eurozone composite PMI contracted for the fifteenth month at 46.5, likely pressuring the ECB to boost stimulus. The Bundesbank also projects that Germany’s recovery will be delayed past Q1 due to the weaker industrial production growth and the extreme weather. The April U.S. Markit Preliminary PMI also was weaker than expected at 52 compared to the projected 53.9.
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