U.S. stocks are poised to extend a rally relative to gold that was interrupted at midyear when the precious metal’s price climbed, according to Tobias Levkovich, Citigroup Inc.’s chief U.S. equity strategist.
European stocks have risen half as much as global benchmarks this year, leaving them cheaper than equities in the U.S. and Asia as the region’s economy starts to recover from the longest recession on record.
Credit Suisse Group AG’s Andrew Garthwaite lifted his 2012 forecast for the Standard & Poor’s 500 Index to 1,400, citing the European Central Bank’s refinancing plans for banks as a “potential game changer.”
Stocks slid with Treasuries and gold while the dollar rallied as better-than-forecast data on business activity and consumer confidence fueled speculation the Federal Reserve will scale back its bond purchases. The Standard & Poor’s 500 Index trimmed a seventh straight monthly gain.
U.S. stocks retreated, snapping a four-day rally for the Standard & Poor’s 500 Index, as euro- region governments braced for credit downgrades by S&P and after JPMorgan Chase & Co.’s profit slumped 23 percent.