FKLI Related News (Tues, Apr 16)

Stocks tumbled as steep declines in gold and other commodity prices fueled a selloff after worse-than-expected data on Chinese and U.S. economic growth. The plunge on Monday began during Asian hours and spread around the globe. Late in the day, news of explosions at the site of the Boston Marathon added to market jitters. But for most of the day, attention was centered on the dive in gold prices. For the second straight session, gold plummeted, losing $140.40, or 9.4%, to settle at $1360.60 a troy ounce. The drop was the largest one-day percentage fall since February 1983. Traders reported talk of investors selling stocks to raise cash in response to losses on gold positions.

The Dow Jones Industrial Average sank 265.86 points, or 1.8%, to 14599.20. The Standard & Poor's 500-stock index slipped 36.49 points, or 2.3%, to 1552.36, and the Nasdaq Composite Index fell 78.46 points, or 2.4%, to 3216.49. Total stock-trading volume across all major U.S. exchanges was its highest this year, with 8.36 billion shares changing hands, the most since Dec. 21. Declines in commodity-linked sectors far outpaced losses in other categories on Monday. Shares in the materials and energy sectors both declined 3.9%. Mining company Freeport-McMoRan Copper & Gold FCX -8.30%was the biggest decliner in the S&P 500, shedding $2.65, or 8.3%, to $29.27.

The selloff began in Asia and spread around the globe, sparked by disappointing Chinese data. Above, traders at the Big Board on Monday. Helping kick off the selling was data showing China's economy expanded 7.7% in the first quarter. That fell short of expectations of 8%. "Commodities can't appreciate without China being strong," said Jeffrey Sica, chief investment officer and founder of SICA Wealth Management, which invests in gold. He said he was sitting on his positions but "wouldn't want to be among the first to try to call a bottom here." He said the corresponding selloff in stocks could be a sign that large investment funds are selling stockholdings to cover losses. "What's important to realize is how much gold is used as collateral," he said.

Crude oil also declined, with prices slumping 2.8%, to $88.71 a barrel. The dollar rose against the euro and fell against the yen. Meanwhile, demand rose for the haven 10-year Treasury note, pushing the yield down to 1.702%. Also weighing on stocks were two reports on the U.S. economy that came in worse than expected. The Federal Reserve Bank of New York reported that manufacturing barely expanded in the New York region this month, as the business-conditions index declined more than expected. Separately, home builders' confidence fell for the third straight month, on expectations of a rise.          [Wall Street Journal]

Stocks on Bursa Malaysia closed broadly lower yesterday, in quiet trading, amid weak regional sentiment with prices moving sideways as investors await the release of some corporate results. FKLI spot month contract opened lower this morning following concerns over slowing growth in China and the U.S. Today’s Support and Resistance for FKLI April contract is located around 1,680 and 1,700 respectively.