Monday, October 18, 2010

20101018 0853 Global Market News.

Gold falls 1 pct as dollar rebound weighs
SINGAPORE, Oct 18 (Reuters) - Gold fell nearly one percent, weighed down by a rebound in the dollar, after Federal Reserve Chairman Bernanke on Friday gave few details of the much-anticipated easing move being weighed by the central bank.
"For today, gold prices will continue to slip a bit, and the longs liquidate their positions. On Friday gold's performance was lacklustre due to profit-taking, as investors think the gold rally may get beaten up after it reached record prices recently," said Ong Yi Ling, an analyst at Phillip Futures.

Dollar firms, stocks lower after Bernanke
HONG KONG, Oct 18 (Reuters) - The battered dollar rose to edge further away from a 10-month low on Friday, while a rally in Asian stocks paused as investors took some profits ahead of a widely expected easing in U.S. monetary policy.
"The key concern is still the appreciation of the Taiwan dollar, so most technology shares weakened," said Tom Tang, a vice president at Masterlink Investment Advisory.

OIL: Oil falls towards 1-week low as investors ponder stimulus
SINGAPORE, Oct 18 (Reuters) - Oil fell towards one-week lows on Monday as a rebound in the dollar prompted investors to halt their charge into commodities, while waiting for details about U.S. economic stimulus measures.
"QE2, which had been progressively bullish for oil over the course of September and into early October, ran out of steam as a driver for prices, at least for the time being, and probably until it is actually announced, along with details of its implementation," by November 3, when the next Fed meeting concludes, said Mike Wittner, Societe Generale's head of oil market research.

COMMODITY MARKETS: Rally pauses on dollar; CRB up 8th week
NEW YORK, Oct 15 (Reuters) - Most commodities fell on Friday as investors took profits after a week-long rally in gold, oil and grains supported by the notion that the Federal Reserve will soon purchase government debt to stimulate the economy.
"The question is for how much longer the market is prepared to run just on the quantitative easing story," said Ole Hansen, senior manager at Denmark's Saxo Bank, a major European commodities dealer.

GLOBAL MARKETS: Stocks slip, dollar gains after Bernanke
NEW YORK, Oct 15 (Reuters) - World stocks slid and the dollar rebounded on Friday as a growing U.S. foreclosure crisis undermined an initial boost after U.S. Federal Reserve Chairman Ben Bernanke indicated more monetary stimulus was on the way.
"The dollar is somewhat oversold against a number of its key counterparts, but I don't really see much scope for sustained dollar gains ahead of the Fed meeting in November," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc in Washington.

Profits taken, pressure high ahead of Bernanke
HONG KONG, Oct 15 (Reuters) - Investors took profits on gains in Asian equities this week but kept the U.S. dollar close to a 10-month low and commodities near two-year highs ahead of a speech by the head of the Federal Reserve.
"We are concerned that the market is short dollar based on a deep expectation that the Fed Chairman will hint strongly at an aggressive QE programme," Steven Englander, head of G10 foreign exchange stratgey at Citi, said in a note.

PRECIOUS-Gold holds steady below $1,380/oz ahead of Bernanke
LONDON, Oct 15 (Reuters) - Gold held steady near $1,380 an ounce in Europe on Friday, with the precious metal's sharp run higher losing momentum as the dollar steadied, but lingering doubts over the currency continued to support prices.
"A barrage of key economic data, including a most awaited speech from Federal Reserve Chairman Ben Bernanke, is due today, and markets seems to be bracing for any cues on the proposed QE2," said Pradeep Unni, senior analyst at Richcomm Global Services.

FOREX-Dollar under pressure as market seeks Fed policy clues
LONDON, Oct 15 (Reuters) - The dollar hovered near a 10-month low versus a currency basket on Friday as investors seeking more clues on likely U.S. monetary easing waited for Federal Reserve head Ben Bernanke to speak.
"There is growing expectation that he (Bernanke) may provide more clarity on the Fed's proposed QE2 today ... The criteria for perceived success is important to provide a guide as to when it may end," a London-based trader said.

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