US Equity markets are closed for the Martin Luther King holiday. Here’s some other news from around the world …
IMF chief: global recovery stronger than expected
The head of the IMF said China and other developing Asian economies are leading a global recovery that is faster and stronger than expected, but warned that money rushing into emerging markets could lead to asset bubbles.
Dominique Strauss-Kahn, the managing director of the International Monetary Fund, strongly suggested Monday that the IMF would raise its 2010 global growth forecast from the 3.1 percent it projected in October.
Gold Gains in London as Greece Concern and Dollar Boost Demand
Gold, little changed in London today, may climb as concern about the soundness of Greece’s public finances boosts the metal’s appeal as a haven. Palladium and platinum rose to the highest prices in at least 17 months.
European finance ministers meet today to discuss Greece’s budget deficit. The country’s worsening finances last month prompted credit-rating companies to cut its creditworthiness. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, fell as much as 0.3 percent today. Gold typically moves inversely to the dollar.
Corn, Soybeans May Fall as Global Inventories Forecast to Surge
Corn and soybeans may fall on reduced investment demand after the U.S. government predicted that record global production will boost inventories to a nine- year high in 2010.
Crude Oil Gains for First Time in Six Days on China Demand, OPEC Outlook
Oil rose for the first time in six days on forecasts that China will boost imports and after Qatar said OPEC isn’t likely to increase production this year.
A challenge to bubble-spotters
Smart people like you and me can always spot a bubble, right? Well, maybe not. Scott Sumner, a professor of economics at Bentley University in Boston, offers an interesting discussion on his blog, The Money Illusion, that shows how difficult it is to identify a bubble in progress. He points to the Fidelity Latin America Fund, which shot up sevenfold in value from 2002 to 2007, then fell sharply, then regained much of its losses over the past few months. Is this a bubble in progress? Or is this a rational recognition of the region’s progress?
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