Thursday, August 12, 2010

20100812 1127 Global Market News.

OIL: Crude weaker as demand concerns weigh
TOKYO, Aug 12 (Reuters) - U.S. crude futures were weaker on Thursday after falling steeply the day before amid demand worries as data showed a rise in U.S. gasoline stocks and easing weather fears in the Gulf of Mexico.
Global oil demand growth will inch higher over the rest of this year and into 2011, but any rise could be eroded if the economy is weaker than forecast, the International Energy Agency (IEA) said on Wednesday. 

COMMODITY MARKETS: Broad slump on economy fears; grains await USDA
NEW YORK, Aug 11 (Reuters) - Most commodity markets, including oil and industrial metals, fell in volatile trade on Wednesday as investors sold off risky assets when China's factory output slowed a day after the Federal Reserve downgraded its outlook for U.S. economic growth.
"There's just a lot of uncertainty about the report tomorrow," said Brian Basting, commodity research analyst at Advance Trading in Bloomington, Illinois. "We've seen some profit-taking ahead of this report and now people are just evening up positions to see what the USDA says tomorrow."

GLOBAL MARKETS: Stocks plunge, dollar rallies on growth fears
NEW YORK, Aug 11 (Reuters) - Fear roiled global markets on Wednesday, with stocks sinking and the dollar making its biggest one-day gain in nearly two years against most currencies.
"I don't think that we are in for a major correction for the equity market," said Klaus Wiener, head of research at Generali Investments in London. 

Fed's econ view weighs on stocks, dlr/yen
LONDON, Aug 11 (Reuters) - The dollar fell towards a 15-year low against the yen while world stocks hit a 1-1/2 week trough after the Federal Reserve's assessment of the U.S. economy turned more pessimistic.
"It was probably a reflection of divided perceptions on the outlook. The Fed has done little more in terms of action, other than the gentlest of nudges on the tiller," said Jeremy Batstone-Carr, strategist at Charles Stanley.

Fed offers fresh aid to shaky U.S. recovery
WASHINGTON, Aug 10 (Reuters) - The Federal Reserve on Tuesday took a small but significant step to counter a weakening U.S. economic recovery, saying it would use cash from maturing mortgage bonds it holds to buy more government debt.
The decision to reinvest proceeds from the nearly $1.3 trillion in mortgage-linked debt, acquired during the 2008 financial crisis in an effort to keep borrowing costs down, represents a policy shift for the central bank.

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