Mid-morning report: stocks up on Fed hopes

Stockhouse Editorial
0 Comments| November 14, 2013

The TSX composite rose 83.03 points to 13,453.69 in mid-morning trading on Thursday. The Dow was up 53.37 to 15,875.00, while NASDAQ gained 4.15 to 3,969.72.

Kinross Gold Corp. (TSX: T.K, Stock Forum) reported a big drop in third-quarter net earnings amid falling gold prices and higher production costs. Kinross said net income fell to US$49.9 million or four cents per share in the three months ended Sept. 30. Adjusted earnings were $54.4 million or five cents per share, in line with analyst estimates and its shares rose 3.7% to $5.39.

Stock were up amid indications that the next likely leader of the U.S. Federal Reserve, Janet Yellin, will continue stimulus.

Yellin said the economy has regained ground lost to the recession, but unemployment remains too high.

Yellen reiterated the U.S. economy must show continued signs of improvement before the Fed starts tapering off its US$85 billion of monthly bond purchases.

A strong rally on markets during October has largely stalled this month on concerns that the Fed could start tapering as soon as next month.

The Fed's bond purchases have kept long-term rates low and supported a strong advance on many markets.

Meanwhile, official figures showed that the recovery from recession in the 17-country eurozone continued in the third-quarter of the year _ but only just. Eurostat, the EU's statistics agency, says Thursday that the region posted economic growth of 0.1% during the July to September period compared with the previous three-month period. That was in line with market expectations but below the previous quarter's 0.3% growth.
The price of gold gained US$11.26 to US$1,292.79 an ounce, while silver was up US$0.23 to US$20.85 an ounce.

Tags: GOLD

Rate this article
0 stars




No comments yet. Be first to comment!

Leave a Message

You must be logged in to access this feature.