Monday, August 30, 2010

20100830 1005 Global Market News.

Yen pares losses as BOJ disappoints,stocks up
HONG KONG, Aug 30 (Reuters) - The yen trimmed losses and Japanese shares gave up some of their strong early gains after the Bank of Japan made only minor tweaks in policy, disappointing markets which had been looking for more aggressive action against deflation.
"If the BOJ really wanted to do something about the strength of the yen, they should have done something about deflationary pressures. The current policy of doing nothing simply isn't working," said Robert Rennie, currency strategist at Westpac in Sydney. 

OIL: Crude gains 4th day on U.S. economy, storms
SINGAPORE, Aug 30 (Reuters) - Crude rose for a fourth day on Monday on sustained momentum from Federal Reserve Chairman Ben Bernanke's speech and increased hurricane activity in the Atlantic Ocean, with storms expected to follow paths closer to the United States.
Along with oil, corn, coffee, base metals like copper and many other commodities posted sharp gains on Friday, lifted by a downward revision to U.S. growth that was not as severe as anticipated.

COMMODITY MARKETS: Bernanke's reassuring talk boosts oil, copper, corn
NEW YORK, Aug 27 (Reuters) - Oil, corn, coffee and base metals like copper, along with many other commodities, posted sharp gains on Friday, lifted by a revision to U.S. growth that was not as severe as anticipated and following comments by Fed chief Bernanke that calmed fears of double-dip recession.
"Especially with the good GDP numbers today, Bernanke and other Fed members are singing to the same tune that yes, we are going through a soft patch, but a double dip is not likely," said Peter Cardillo, chief market economist at Avalon Partners in New York.

GLOBAL MARKETS: Bargain hunters boost shares, euro flat
NEW YORK, Aug 27 (Reuters) - Global stocks rose on Friday, as bargain hunters erased early losses sparked by downbeat remarks on the economy from Federal Reserve Chairman Ben Bernanke and a warning of lower revenues by bellwether Intel.
"We're sitting on important support and in thin markets you don't want to be leaning too far in one direction coming into a very low volume week," said Richard Ross, global technical strategist at Auerbach Grayson in New York.

Asia Dry Bulk-Capesize rates to fall on weak iron ore demand
SINGAPORE, Aug 27 (Reuters) - Freight rates for large dry bulk carriers on key Asian routes are expected to decline next week on concerns Chinese demand for iron ore will slow, shipbrokers said on Friday.
In the panamax freight market, rates are seen trading in a tight range as traders balance strong Chinese demand for U.S. soybean shipments and the large surplus of available tonnage.

FOREX-Yen dips; market wary of possible Japan action
LONDON, Aug 27 (Reuters) - The yen dipped against the dollar and the euro on Friday as a nervous market trimmed long positions and Japan's prime minister reiterated a threat to take steps to stem the currency's steady rise.
"I don't think we'll see intervention around current levels unless we get a disorderly move where dollar/yen falls sharply, say by 3 yen, during one day," said Gavin Friend, currency strategist at nabCapital.
Stocks hold above 7-wk low before Bernanke

LONDON, Aug 27 (Reuters) - World stocks hovered above a recent seven-week low on Friday while oil slipped as investors braced for an update on the U.S. economic outlook from the chairman of the Federal Reserve, following a run of weak data.
The yen slipped against the dollar as speculation rose that Tokyo might take steps to stem export-damaging strength in the Japanese currency.

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