Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: China Growth Slows; Precious Metals Plunge


The gold sell-off accelerates.

Stocks are heading down this morning after the Chinese economy grew slower than expected.

Despite encouraging data on exports and imports, China's economy only grew at an annualized pace of 7.7% in the first quarter, missing forecasts of 8%. In the fourth quarter of last year, China's gross domestic product rose 7.9% over the year-earlier period. Beijing also released data showing that industrial production grew slower in March than in the previous two months, rising 8.9%, while retail sales were up 12.6% from the year earlier, a slight improvement over January and February.

The disappointing Chinese data rocked commodities and global equities this morning. West Texas Intermediate oil futures are down 2.41% at $89 per barrel and copper dropped 3.4% to $323/lb. European and Asian stock markets are in negative territory and US stock futures also declined. Dow (INDEXDJX:.DJI) futures are down 0.29% at 14,741 and S&P (INDEXSP:.INX) futures sank 0.40% to 1,575.50. Nasdaq (INDEXNASDAQ:.IXIC) futures retreated 0.37% to 2,835.75.

Precious metals futures continued to drop today. Gold fell 6.37% to $1,410.30 an ounce and silver declined by 9.4% to $23.58 per ounce. The sell-off of gold might be due to the Eurogroup's pressure on Cyprus to sell its gold reserves to help pay for the bailout.

The bearish sign from China also hit mining companies that supply industrial commodities. Freeport-McMoRan (NYSE:FCX), the largest publicly traded copper miner, declined 4% this morning.

Citigroup (NYSE:C) reported this morning that it earned more than expected in the first three months of 2013. The bank earned $1.23 per share on $20.5 billion in revenue as it cut costs and saw strong loan demand and an increase in investment banking profit.

Dish Network (NASDAQ:DISH) placed a bid for Sprint Nextel (NYSE:S) to challenge a previous bid by Japan's Softbank (TYO:9984). The satellite TV company offered $25.5 billion, or $7 per share in cash and stock, for 32% of Sprint. This is a much higher premium for Sprint's shares than Softbank's $20 billion offer for 70% of shares. In pre-market trading, Sprint rose $15.59% to $7.19.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos