Thursday, October 7, 2010

20101007 1003 Global Market News.

OIL: Crude steady near 5-month high, awaits U.S. jobs cue
SINGAPORE, Oct 7 (Reuters) - Oil steadied within a dollar of five-month highs on Thursday, supported by falling U.S.fuel stockpiles and expectations central banks will ease monetary policy to shore up sluggish economies.
The prospect of a second round of expansionary monetary policy, known nowadays as quantitative easing stage two, or QE2,hangs upon key U.S. employment reports, with weekly statistics due on Thursday and a more comprehensive monthly set of data on Friday.

COMMODITY MARKETS: Gold leads broad rally on dollar, job worries
NEW YORK, Oct 6 (Reuters) - Gold resumed its charge forward on Wednesday as worry over a forthcoming U.S. jobs report and expectations of monetary easing again hit the dollar, taking the safe haven to a new record that led the commodities rally.
"The second round of the commodity bull-run has already started. I'm quite positive it will last possibly until 2016," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

GLOBAL MARKETS: Dollar, gov't yields fall on stimulus hopes
NEW YORK, Oct 6 (Reuters) - The prospect of more cheap money from world central banks fueled a rally in global bond prices on Wednesday and pushed the dollar to a 15-year low against the yen and an 8-1/2-month low against major currencies.
"Investors continue to dance to the tune of quantitative easing and its intended inflation of asset prices," hedge fund manager Doug Kass of Seabreeze Partners told clients.

Currency tensions flare as Brazil, Japan take action
LONDON, Oct 5 (Reuters) - A drive by many of the world's economies to cap the strength of their currencies is gaining momentum, with Brazil firing the latest shot just days before world finance leaders meet in Washington. Ultra-low interest rates in Europe and Japan and concerns that the U.S. Federal Reserve is about to embark on another round of money printing that could weaken the dollar have pushed currencies to the top of the agenda for the gathering of finance chiefs from the Group of Seven rich nations on Friday.

China's next 5-yr plan to alter commodity demand-economist
LONDON, Oct 5 (Reuters) - China's next five year plan covering 2011 to 2015 will focus on domestic demand and high tech industry and that will alter the make-up of its commodities demand, an industry conference heard on Tuesday.
Larry Brainard, chief economist at research firm Trusted Sources said the growth in China's commodity demand is slowing, but will remain relatively strong as a new development strategy is rolled out later this month.

China property to sustain growth, steel-funds
LONDON, Oct 5 (Reuters) - Property will be a major driver of growth in China over the next few years, helping sustain steel demand and prices, despite government attempts to rein in the sector, an industry conference heard on Tuesday.
Chinese government measures to curb property prices recently have raised the prospect of lower demand growth for steel and other metals such as copper used in power and construction.

PRECIOUS-Dollar pushes gold to record; palladium at 9-yr high
LONDON, Oct 6 (Reuters) - Gold rose to a second successive record high on Wednesday, boosted by investors seeking to profit from weakness in the dollar and the U.S. economy, while palladium hit its highest level in nine years.
"We've seen this huge move in the euro because, essentially, it's thought the U.S. will do more quantitative easing, the ECB is trying to pull back from that and headlines such as 'IMF warns of currency wars' is all grist for the mill for gold really," said Matthew Turner, analyst at Mitsubishi.

FOREX-Dollar plumbs 8-1/2 mth lows as QE prospects weigh
LONDON, Oct 6 (Reuters) - The dollar fell on Wednesday to an 8-1/2 month low against a basket of currencies and edged towards a 15-year trough versus the yen, hurt by expectations the U.S. Federal Reserve will further ease monetary policy.
"Given all the talk of more QE by the Fed, the trend for the dollar index is lower and it can fall another 3-4 percent from these levels," said Neil Mellor, currency strategist at Bank of New York Mellon.

Metal prices soar on central bank easing hopes
SINGAPORE, Oct 6 (Reuters) - Gold hit a fresh record high , the eighth in nine sessions, and base metals surged, riding a wave of optimism that central banks will open the taps and flood markets with cheap money to keep growth from stalling.
"The second round of the commodity bull-run has already started. I'm quite positive it will last possibly until 2016," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.

Stocks, metals and JGBs jump on easing hopes
SINGAPORE, Oct 6 (Reuters) - Stocks and metals rose  while the dollar and Japanese bond yields fell after monetary easing moves by the Bank of Japan spurred expectations of a new round of central bank action to boost feeble economies.
"It's really going to be a struggle between Fed easing and BOJ easing, and whoever wins that contest is going to dictate the direction of dollar/yen," said Gareth Berry, a currency strategist at UBS in Singapore.

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