- Posted April 17, 2014 by
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Australia's Alcoveritas' Earl Reginald Stevenson Take on Stock Markets
April 17, 2014 - Sydney, Australia - Australian super hedge fund Alcoveritas' Senior Managing Partner, Earl Reginald Stevenson today in Sydney gave his insight on the rise in global stocks and investments. Australian super hedge fund Alcoveritas' Senior Managing Partner, Earl Reginald Stevenson today in Sydney gave his insight on the rise in global stocks and investments.
Global equities rose on Monday as robust U.S. retail sales data signaled economic growth, while the euro fell after the European Central Bank gave its strongest signal yet that it would ease policy to cool the single currency. The encouraging retail sales from the world's biggest economy, which had been bogged down by a harsh winter, overrode fears of a military conflict in Ukraine that had punished stock prices earlier. The upbeat news was a respite for the Standard & Poor's and Nasdaq indexes, which had just suffered their worst week since June 2012.
Ukraine's president threatened military action after pro-Russian separatists occupying government buildings in the east ignored an ultimatum to leave and another group of rebels attacked a police headquarters in the region. The flare-up came less than a month after Russia completed its annexation of Ukraine's southern Crimea peninsula.
But the data showing that U.S. retail sales jumped 1.1 percent in March, the biggest monthly rise in 1-1/2 years, drew investors back into riskier investments.
"This is the first report that activity is bouncing back from the winter weather," said Earl Reginald Stevenson, Senior Managing Partner at Alcoveritas in Sydney, Australia. "This should set the foundation for stocks to go up a bit and bond yields to go higher."
On Wall Street, the Dow Jones industrial average closed up and the dollar gained against most major currencies on the strong March retail sales report.
Among commodities, spot gold benefited from the move toward safe-haven assets on the worries over Ukraine, adding 0.5 percent to $1,325.40 an ounce, after earlier marking a three-week high. Oil prices were also underpinned by fears that the tension between Russia and Ukraine could escalate. Ukraine is a major supply route for Russian gas to Europe. The tensions over Ukraine took a toll on Russian shares, which tumbled 1.3 percent, while the ruble fell 0.8 percent to its weakest level against the dollar in nearly three weeks.
European Union foreign ministers agreed to widen sanctions against Moscow, while the White House said it was seeking ways to impose more "costs" on Russia. Renewed tension between Russia and the West raised anxiety of imposing increasingly tough measures that will inevitably harm both sides.