Tuesday, September 14, 2010

20100914 0857 Global Market News.

Asia stocks keep global rally alive; yen rises
HONG KONG, Sept 14 (Reuters) - Asian stocks edged up while the yen rose to a 15-year high ahead of a decisive vote in Japan, leaving unclear whether a rally that lifted global equities to the highest in four months can stay alive.
"Although better data in the U.S. and China and the agreement in Basel on new regulations have boosted risk appetite, the moves are already beginning to look exhausted," Mitul Kotecha, global head of foreign exchange strategy at Credit Agricole CIB, said in a note.

China economy shows inner strength in buoyant data
BEIJING, Sept 11 (Reuters) - Chinese factories ramped up production in August and money growth easily topped expectations, showing that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.
Investment was also resilient, while inflation sped to its fastest pace in 22 months, though the bulk of price rises stemmed from higher food costs, which analysts have said should be transitory after a spell of bad weather across China this summer.

IMF says risks to global growth have intensified
WASHINGTON, Sept 10 (Reuters) - The International Monetary Fund said on Friday that downside risks to global recovery have intensified due to recent turbulence in sovereign debt markets and continued weakness in the financial sector.
The IMF, in a briefing note prepared for Group of 20 deputy finance ministers, said global growth had been somewhat stronger than expected during the first half of 2010, "but is projected to slow temporarily during the second half of 2010 and the first half of 2011."

PRECIOUS-Gold steady near highs; consumers offset risk demand
LONDON, Sept 13 (Reuters) - Gold steadied within about 1.0 percent of record highs on Monday, as improving consumer demand helped cushion the impact of upbeat Chinese economic data on investors' desire for the safe-haven asset.
"It seems risk is a bit back on the table, with China looking okay and Basel swinging the whip, but so far ahead that it's going to take quite a few years for the banks to implement (the rules)," Ole Hansen, senior manager at Saxo Bank, said.

FOREX-New bank rules, Chinese data boost euro
LONDON, Sept 13 (Reuters) - The euro rose more than 1 percent against the dollar on Monday as relief at new global banking regulations and upbeat Chinese data lifted investor appetite for currencies seen as higher-risk.
"Better risk appetite is putting the dollar under pressure and the euro and currencies like the Australian dollar have been holding up very well," said Niels Christensen, currency strategist at Nordea in Copenhagen.

Robust Chinese data lifts metals, oil; gold flat
LONDON, Sept 13 (Reuters) - Upbeat economic data from commodity consuming giant China boosted key raw materials copper  and oil  , while capital protection vehicle gold  eased as attitudes towards risk brightened.
"The Chinese data was instrumental, especially as the market had also heard rumours the Chinese were to hike interest rates," Commerzbank commodities analyst Eugen Weinburg said.

Wave of calming news lifts stocks, hits dollar
LONDON, Sept 13 (Reuters) - World stocks surged  and Wall Street looked set to join in, driven by robust economic news from China and relief that new global bank rules would not mean a rush to raise billions of dollars in extra capital.
"Risks of double dip (recession) straight away are clearly low. People have probably got over-worried in August that the end of the world is nigh," said Michael Dicks, head of research and investment strategy at Barclay's Wealth.

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