S&P 500 Posts 6th Straight Gain Despite Weak Chinese Exports

Published 08/13/2012, 09:13 AM
Equities

Asian markets declined on Friday, ending a 4-day winning streak, pressured by weak Chinese data. The Shanghai Composite slipped .2% to 2169, as exports grew by just 1%, sharply below forecasts for an 8.6% gain. The Hang Seng fell .7% to 20136, the Nikkei slumped 1% to 8891, and the ASX 200 sank .7% to 4277. Bucking the trend, Korea’s Kospi rose .3%, as LG Display rallied 3%, thanks to an analyst upgrade.

European markets eased as well, taking a break from the recent rally. The CAC40 dropped .6% to 3435, the DAX declined .3% to 6945, and the FTSE eased .1% to 5847.

In the US, the leading indexes rose modestly, and the S&P 500 clinched its 6th straight gain, edging up .2% to 1406. The Dow advanced 43 points to 13208, and the Nasdaq inched up .1% to 3021. The VIX fell 3.1% to 14.81, a confirmation of investor calmness.

Currencies
The Dollar settled mixed against global currencies, as the pairs traded in fairly narrow ranges. The Euro declined .1% to 1.2290, the Pound climbed .3% to 1.5688, and the Yen rallied .4% to 78.28. The Australian Dollar and the Canadian Dollar both settled little changed.

Economic Outlook
US import prices unexpectedly declined .6% last month, versus forecasts for a .1% gain. The Federal budget deficit increased by $69.6 billion, significantly below forecasts for $103 billion increase.

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