Gold edged higher, recovering early losses, as stocks came under pressure from renewed concerns over the euro zone economy, and on caution ahead of a European Central Bank meeting later this week
Pro trader Rich Ilczyszyn looks at important technical indicators for the yellow metal.
Euro zone equities sank to two-month lows on Wednesday, with investors locking in profits on a half-year rally.
Stock inflows do not seem to be at the expense of fixed-income, bond dealer Bill Gross told CNBC.
Japan posted its biggest daily gain in nearly two years, moving up 3.8 percent to close at its highest level since October 2008.
Asian shares gained on Wednesday as solid euro zone data helped sentiment, while the prospect of a dovish new governor for the Bank of Japan sent the country's stocks surging.
Record high unemployment mean the European Central Bank has scope to lower interest rates in order to weaken the spiraling euro, ING Senior Economist Carsten Brzeski said.
The recent strength in the euro is reigniting concerns over the health of the euro zone, with analysts questioning whether too strong a currency could derail Europe's recovery by dampening export demand.
With volatility low and complacency high, traders are searching for the spark that could trigger a market pullback.
The euro rose against the dollar and yen Tuesday as better-than-expected euro zone data affirmed expectations that the European Central Bank will keep policy steady when it meets this week.
Oil prices resumed their three-week rally, boosted by positive economic data in Europe that reignited the upward momentum in stock markets.
Gold retreated from an initial rally as solid gains in U.S. equities and an improving economic outlook weighed on the metal's safe-haven appeal.
U.S. Treasurys prices fell on Tuesday as a rebound in Wall Street stocks and less gloomy data on European business activity cut the appetite for safe-haven government debt, pushing benchmark yields back above 2 percent.
European shares rose on Tuesday as signs of economic recovery in the euro zone helped soothe investors' worries a day after the return of political risks in Spain and Italy sparked a selloff in stocks.
The Fed's easy money for "as far as the eye can see" and will continue to boost U.S. stocks, noted economist Nouriel Roubini told CNBC.
U.S. stock index futures climbed Tuesday, a day after major averages logged their worst one-day performance in nearly three months, tracking gains in European shares and ahead of a key services sector report.
Despite Monday's sharp pullback, risk can rally further in the medium term and the S&P500 could break through 2007 record levels, Nomura Strategist Bob Janjuah said on Tuesday.
U.S. stock market momentum for the rest of 2013 looks "very favorable," Jim O'Neill, Goldman Sachs Asset Management chairman, told CNBC.
Investors should brace for a pullback in equity markets and should book profits now, Stewart Richardson, chief investment officer at RMG Wealth Management said on Tuesday.
Asian shares slumped on Tuesday with discouraging U.S. factory orders and political ructions in Spain and Italy keeping investors cautious.
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