Index ETFs Continue Record Run As S&P Nears Record High; Europe Eases On Italy

Ulli Market Commentary Contact

Mon pic

[Chart courtesy of]

US indexes continued their record run Monday with the S&P 500 rising within nine points of the all-time high, while a gauge of market volatility slipping to the lowest level in six years as banks rallied and Apple Inc gained.

Stocks tumbled earlier after National Bureau of Statistics data showed Chinese industrial output grew 9.9 percent from a year earlier in the first two months of the year while retail sales gained 12.3 percent, both falling short of expectations. Consumer inflation rose 3.2 percent in February, up from 2 percent in January and the highest increase since April last year.

The CBOE Volatility Index, known as the VIX, shed 8.2 percent to 11.56, the lowest since February 2007.

The Dow Jones Industrial Average (DJIA) hit another record high, its fifth in a row. The winning streak is the longest since March 15, last year.

The S&P 500 Index (SPX) added 5 points, its highest since October 2007. Banks, materials and healthcare firms surged the most while telecommunications was the sole laggard among its 10 business group.

Treasury prices edged lower, pushing yields higher Monday even as euphoria over last week’s upbeat jobs report continue to moderate demand for safer assets.

The US dollar, meanwhile, eased up against major rivals on Monday as investors wondered whether the rally following last week’s strong US jobs data was overdone.

Across the Atlantic, European equity averages retreated from a 4-1/2 year high after shares edged mostly lower Monday, as markets turned jittery following a weak batch of Chinese data and a downgrade for Italy that came at the end of last week.

The Stoxx Europe 600 index fell 0.1 percent to 295.26, snapping its three-day winning streak and trimming this year’s gain to 5.6 percent.

National benchmark indexes tumbled in 10 of the 18 European markets with banks from the peripheral nations leading the day’s declines.

Our Trend Tracking Indexes (TTIs) headed deeper into bullish territory with the Domestic TTI now sitting at +3.41% above its long-term trend line, while the International TTI picked up some speed and settled at +10.73%.

Contact Ulli

Leave a Reply