Tuesday, 16 April 2013

FKLI Related News (Wed, Apr 17)

NEW YORK, April 16 (Reuters) - U.S. stocks jumped more than 1 percent on Tuesday, a day after their worst decline since November, as gold prices rebounded and earnings from Coca-Cola and Johnson & Johnson improved the outlook for first-quarter results. Inflation data, which reinforced expectations that the Federal Reserve will keep its stimulus plan in place, added to bullish sentiment.
The price of gold jumped after its record daily drop in dollar terms on Monday. The SPDR Gold Shares ETF, which fell 8.8 percent on record volume Monday, rose 1.1 percent to $132.80. The S&P 500 materials index climbed 1.9 percent, leading the index higher. The market's advance followed the S&P 500's drop of more than 2 percent drop on Monday, giving the index its worst one-day percentage loss since Nov. 7. The S&P 500 is up 10.4 percent since the start of the year after enjoying a strong first-quarter run, partly as a result of the Fed's continued stimulus efforts.
Coca-Cola Co shares rose 5.7 percent to $42.37, after rising intraday to $42.48, their highest since 1998, and giving the Dow its biggest boost. The Dow Jones industrial average jumped 157.58 points, or 1.08 percent, to 14,756.78 at the close. On Monday, a drop in the price of gold and other commodities triggered a sharp selloff in stocks. But stocks fell further late in the session after news of two fatal explosions near the finish line of the Boston Marathon. The S&P 500's slide on Monday took the index back to a range it had held for about a month. Yet the index on Tuesday closed above its 14-day moving average.
Analysts' positive views on basic materials companies also helped the sector. Further supporting stocks, data showed the U.S. Consumer Price Index fell in March for the first time in four months, giving the Federal Reserve room to maintain its monetary stimulus to speed up economic growth. A separate report showed housing starts rose 7.0 percent last month to an annual rate of 1.04 million units, the highest in nearly five years. An index of housing stocks jumped 2.6 percent. Among other earnings, Goldman Sachs reported higher quarterly profit but said revenue from client trading fell 10 percent, raising questions about the health of its biggest money maker.           [Reuters]
Bursa Malaysia closed off its lows yesterday as the KLCI regained lost ground to close in positive zone spurred by local buying support, despite global sentiment being spooked by the Boston Marathon bomb blast, coupled with the disappointing economic growth in China. FKLI spot month contract opened higher this morning at 1,703 following Wall Street’s rebound, boosted by gold, earnings and data.
Today’s Support and Resistance for April contract is located around 1,690 and 1,710 respectively.

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