The World Bank upgraded its growth forecasts for 2014 this morning.
It now sees global growth at 3.2% year-to-year from its estimate of
3.0% in June of last year. The World Bank warned that emerging
market economies could see capital flows drop by 80% if developed
markets' central banks moved too quickly with regards to removing
monetary stimulus. If the removal caused rapid interest rate
adjustments, countries with large current account deficits or high
local debt levels would be most vulnerable to slowdowns. Its
developing countries forecast was lowered to 5.3% from 5.6% in
June, the EU was raised to 1.1% from 0.9%, and China was cut to
7.7% from 8%.
US equities continued their rally from yesterday. The
(INDEXRUSSELL:RUT) broke to new record highs. The former rose
0.52%. The S&P was led by strong performances from telecom,
tech, and financial stocks. Financials were buoyed by strong
fourth-quarter results from Bank of America (
). Energy-, health care-, and utility-sector stocks all declined.
US producer prices rose 1.2% from a year ago, breaking their
two-year trend of falling prices. The economist estimate had been
for a 1.1% increase, up from 0.8% in the month prior. The New York
regional manufacturing survey rose to an index reading of 12.51 in
January, up significantly from 2.22 in the month prior. The survey
showed strong gains in new orders, employment, and unfilled orders,
all of which indicate strong activity in the new year.
oil futures rose 1.68% after weekly inventories saw a surprise draw
of 7.7 million barrels vs. an estimated draw of 673,000, according
to the DoE. Last night's API inventories saw a draw of 4.14 million
barrels, which caused some positive momentum in overnight trading.
) rejected the $3.08 billion acquisition offer from Elliott
Management that would have amounted to $19 per share. Riverbed saw
the offer as undervaluing the company and not in the best interest
of the shareholders. The stock added another 1% in today's trading,
closing at $20.25.
The US will release the December 2013 consumer price index tomorrow
morning. Economists estimate that prices rose 1.5% from a year ago
after rising 1.2% in the month prior. Also scheduled for the
morning is November 2013 TIC flows and the Philadelphia regional
manufacturing survey. Lastly, the NAHB survey of builder and real
estate agent sentiment for January will be released in the late
December 2013 eurozone consumer price inflation will be released
tomorrow morning before the US markets open. The final estimate of
inflation is expected to remain unchanged at 1.8%. Also on the
schedule is Australia's employment change and Japanese machine
Fourth-quarter earnings reports will pick up tomorrow. Notable
companies scheduled to report are
, Goldman Sachs
, Capital One
, American Express
, and PNC Financial