Stocks started lower today as investors worry over a
report showing slower than expected growth in China. On Friday, China reported its gross domestic
product for the first quarter of 2012 rose 8.1%, less than the 8.4% expected by
analysts. Concern over China’s growth
prospects rattled markets worldwide, with US indices taking back 0.75% and
European stocks also retreating anywhere from 1%-2%. In economic news, the US Labor Dept. reported
cost of living rose in March. The
consumer price index (CPI) climbed 0.3% in March, slightly higher than
expected. Excluding volatile food and
energy prices, the Core CPI climbed 0.2% in March. The Thomson Reuters/University of Michigan
Consumer Sentiment gauge for April fell to 75.7 from 76.2 at the end of last
month. Economists expected a reading of 76.2
to start April. As a comparison, the
consumer sentiment gauge averaged a reading of 89 in the 5 years leading up to
the recession in 2007. In Europe, stocks
retreat on Chinese GDP data and concern over Spain. Spanish stocks plunged to a 3 yr. low as data
showed Spanish banks increased borrowing from the European Central Bank, nearly
doubling the funds borrowed in March than in the prior month. Spain continues to battle to avoid becoming
the 4th euro-area nation to receive bailout. Oil prices dipped 0.44% to 103.18 and gold
also retreated 0.79% to 1667.40. The US
dollar climbed against most currencies.
30 yr. mortgage rates remained around 3.90%. The 10 yr. treasury yield fell5 basis points
to 1.99% and the volatility index climbed 3.90% to 17.87.
