2012.04.13 - Stocks  Copper Decline as Treasuries Rise on China Growth- Bloomberg
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2012.04.13 - Stocks Copper Decline as Treasuries Rise on China Growth- Bloomberg

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13/04/12 15:44Stocks, Copper Decline as Treasuries Rise on China Growth- Bloomberg

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Stocks, Copper Decline as Treasuries Rise on China Growth
By Andrew Rummer and Rita Nazareth
Abril 13, 2012 1:05 PM EDT

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Stocks fell, driving Spanish shares down the most since November and pushing
U.S. equities toward the longest slump in four months, as commodities slid and
Treasuries rose after China posted slower-than-forecast economic growth and
American consumer confidence weakened.
The Standard & Poorʼs 500 Index (SPX) lost 0.8 percent to 1,376.62 at 1:01 p.m. New York time,
heading for the first two- week drop since November. The Stoxx Europe 600 Index fell 1.5
percent, completing a four-week slump, as Spainʼs IBEX 35 sank 3.6 percent to the lowest level
since March 2009. The S&P GSCI Index (SPGSCI) of 24 raw materials slid 0.7 percent as
copper fell 2.6 percent. Yields on 10-year Treasuries decreased six basis points to 1.99 percent.
The cost of insuring against a Spanish default reached a record high.
China said gross domestic product increased 8.1 percent in the first quarter, the smallest gain
since 2009 and less than the 8.4 percent median growth projection in a Bloomberg survey.
JPMorgan Chase & Co. (JPM), Google Inc. (GOOG) and Wells Fargo & Co. fell even after they
beat profit estimates. Equities also retreated after a gauge of U.S. consumer confidence fell.
“Itʼs a very fragile market,” Mark Bronzo, who helps manage about $125 billion at Guggenheim
Investments in Irvington, New York, said in a telephone interview. “Youʼre seeing China slowing
down. Thereʼs concern that the worst is not over in Europe. The U.S. economy has done a bit
better. Yet the question is: Is it sustainable?”
Weekly Slump
The S&P 500 has retreated 1.5 percent this week. The measure fell 3 percent since reaching a
four-year high on April 2. The Stoxx 600 (SXXP) dropped 2.1 percent this week and posted the
longest stretch of weekly losses since August.
Benchmark stock indexes for Spain, Italy, France, Germany, Austria and Sweden declined at
least 2 percent today, the most among developed-market nations, according to data compiled by
Bloomberg. Spainʼs IBEX 35 posted the biggest loss since Nov. 1.
The cost of insuring against a Spanish default reached a record high as Prime Minister Mariano
Rajoy struggles to prevent the nation from becoming the fourth euro-region member to need a
bailout. Credit-default swaps on Spain rose to 498, topping the all-time high of 493 set Nov. 23

13/04/12 15:44Stocks, Copper Decline as Treasuries Rise on China Growth- Bloomberg

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according to CMA.
JPMorgan, the largest U.S. bank, declined 2.7 percent even after reporting first-quarter profit of
$1.31 a share, topping the average analyst estimate of $1.17 a share in a Bloomberg survey.
Mortgage revenue surged and trading almost doubled from the fourth quarter.
Wells Fargo, Google
Wells Fargo (WFC), the biggest U.S. home lender, retreated 2.2 percent. It beat the average
analyst earnings projection by 2 cents, reporting profit of 75 cents a share.
Google lost 3.7 percent. First-quarter profit, excluding certain costs, was $10.08 a share.
Analysts had projected $9.64 on average, data compiled by Bloomberg show. The Internet
search engine unveiled a plan yesterday that lets it issue new shares without diluting the
foundersʼ voting power.
Crude oil futures declined 0.6 percent to $103.02 a barrel and copper futures slipped to $3.625 a
pound. China is the biggest buyer of the metal and largest energy consumer. Natural gas
advanced 0.3 percent $1.988 per million British thermal units after yesterday falling to a 10-year
low of $1.971. Gold futures retreated 0.8 percent to $1,667.10 an ounce.
The 30-year Treasury bond yield dropped seven basis points to 3.14 percent. The Federal
Reserve is scheduled to buy as much as $2 billion of Treasuries.
U.S. government debt is approaching the most expensive levels in almost five weeks, according
to the term premium, a model created by Fed economists. The figure reached minus 0.64
percent today after touching negative 0.65 percent on April 10.
The won strengthened versus 15 of 16 major counterparts after North Koreaʼs rocket launch
failed. South Koreaʼs Kospi Index increased 1.1 percent. North Korea launched the rocket in
defiance of international pressure including U.S. warnings that it would nullify a food-aid deal.
The U.S. military said the rocket fell harmlessly into the sea.
To contact the reporters on this story: Andrew Rummer in London at arummer@bloomberg.net;
Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net

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