Earnings growth in the industrial sector sent China stocks soaring on Monday.
China stocks surged on Monday as earnings growth for the nation’s industrial sector put investors in a “risk off” mode. The Shanghai Composite skyrocketed 2.41 percent to 2,346 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index advanced 0.39 percent to 23,671 (NYSEARCA:EWH).
The major European stock indices were mixed on Monday as anxiety increased in anticipation of unemployment data later this week (NYSEARCA:VGK). Spain has already reported that its unemployment rate increased during the fourth quarter of 2012 to 26.02 percent, with the total number of people out of work rising to 5,965,400 (NYSEARCA:EWP).
As of 11:13 EST, the Euro STOXX 50 Index advanced 0.06 percent to 2,745 – staying well above its 50-day moving average of 2,632. After breaking above its resistance level of 2,700 on January 21, the STOXX 50 is once again attempting a sustained advance above that level, which has been a barrier since the beginning of the new year. Its Relative Strength Index is 67.50 (NYSEARCA:FEZ). The FTSE 100 Index climbed 0.30 percent to 6,303 (NYSEARCA:EWU). The German DAX Index declined 0.22 percent to 7,841 (NYSEARCA:EWG). France’s CAC 40 Index rose 0.10 percent to 3,781 (NYSEARCA:EWQ). Spain’s IBEX 35 Index fell 0.51 percent to 8,680 (NYSEARCA:EWP). Italy’s FTSE MIB Index jumped 0.89 percent to 17,883 (NYSEARCA:EWI).
As of 11:26 EST, the euro declined 0.10 percent against the dollar, trading at $1.3450 (NYSEARCA:FXE).
Spain’s ten-year bond yield spiked to 5.03 percent on Monday from Friday’s closing level of 4.91 percent. Spain’s two-year bond yield jumped to 2.50 percent on Monday from Friday’s closing level of 2.44 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield climbed to 4.22 percent on Monday from Friday’s closing level of 4.16 percent (NYSEARCA:EWI).
February Gold futures declined by $1.20 (0.07 percent) to $1,655.40 per ounce (NYSEARCA:GLD). Equities, Miners and Commodities Nearing Turning Points
In Japan, the Nikkei Stock Average retreated after being ahead by 70 basis points earlier in the day. As the British pound weakened against the yen, Japan’s currency advanced against the euro and the dollar. As a result, Japanese stocks declined (NYSEARCA:FXY). The Nikkei 225 Stock Average sank 0.94 percent to 10,824 (NYSEARCA:EWJ).
American stock index futures trading was in positive territory ahead of Monday’s opening bell following a positive quarterly earnings report from Caterpillar (NYSEARCA:CAT). The March 13 Dow Jones Industrials future climbed 0.23 percent to 13,844 as of 9:14 EST. The March 13 S&P 500 future rose 0.19 percent to 1,498 (NYSEARCA:SPY). The March 13 Nasdaq 100 future advanced 0.14 percent to 2,731.
Bottom line: China’s Shanghai Composite Index made a huge advance on Monday, allowing its 50-day moving average to make a big move toward closing the 43-point gap with its 200-day moving average for a golden cross moment.