The iShares MSCI Emerging Markets Index exchange-traded fund fell from a four-month high, defying a rally in the benchmark for developing nations, after the gap to its net asset value swelled to the widest since 2008.
The Standard & Poor’s 500 Index retreated from a record amid concern the Federal Reserve will scale back its stimulus efforts. Gold and silver advanced as Moody’s Investors Service warned the U.S. rating may be cut. The yen rebounded from the weakest level since 2008.
Chinese stocks in the U.S. are trading at the smallest premium to emerging-market equities in two months after slumping in November, a signal to Stifel Nicolaus & Co. that they will rebound as the economy recovers.
Gold and silver futures rebounded after Moody’s Investors Service said U.S. policy makers must address debt woes to avoid a credit-rating downgrade this year, boosting the appeal of the metals as a haven.
Gold futures rose for the second straight day as a government report showed U.S. unemployment remains above a target set by the Federal Reserve, signaling the central bank will continue stimulus measures.
Stocks rallied amid growth in U.S. home sales, better-than-forecast earnings and speculation the European Central Bank will cut interest rates. U.S. equities recovered after briefly erasing gains following a false report of explosions at the White House.