Tuesday, October 26, 2010

20101025 0846 Global Market News.

Gold steady ahead of Fed move; spot trade thin
SINGAPORE, Oct 26 (Reuters) - Gold was steady as investors turned focus on expectations of more monetary easing by the Federal Reserve, and physical buyers were on the sidelines awaiting a clear direction on prices.
"People are waiting for next week's Fed meeting to see how much money they are going to pump into the market," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers.

Asian stocks slip as dollar fights higher
HONG KONG, Oct 26 (Reuters) - Asian stocks slipped but were near a 28-month high, while the dollar edged up against the euro as dealers took some profits with debate about the outcome of the next Federal Reserve meeting clouding the near-term outlook.
After no major policy initiatives emerged from a Group of 20 finance ministers meeting over the weekend, investors had kept selling the dollar on expectations that further asset-buying from the Fed will lead to debasement of the U.S. currency. 

Oil under pressure from dollar as currency link deepens
SINGAPORE, Oct 26 (Reuters) - Oil fell towards $82, under pressure from an expected gain in U.S. crude stockpiles for three out of four weeks and a stronger dollar, as the currency's volatility exposed the market to price swings.
"It could be the oil market is just taking a breather and will just trade range-bound today," said Serene Lim, a Singapore-based oil analyst at ANZ.

China raises fuel prices 3 pct
BEIJING, Oct 25 (Reuters) - China will raise retail fuel prices by about 3 percent from Tuesday in its first hike in 7 months, a move bringing prices back to near record highs but unlikely to dampen oil demand in the world number-two consumer.
Retail ceiling prices for gasoline will increase by 230 yuan ($34.54) per tonne and diesel by 220 yuan, the government said on Monday, confirming an earlier Reuters report. 

OIL: Oil pares losses as dollar retreats
SINGAPORE, Oct 26 (Reuters) - Oil pared early losses on Tuesday as the dollar retreated from session highs, but prices remained capped by forecasts showing U.S. crude inventories rose for the third time in four weeks last week.
The inverse correlation between the dollar and oil has become deeply entrenched over the past few days as investors buy emerging-market shares whenever the greenback drops.

COMMODITY MARKETS: Up broadly as dollar slides without G20 help
NEW YORK/SINGAPORE, Oct 25 (Reuters) - Commodities surged on Monday as the dollar tumbled on market perceptions that the Group of 20 countries at their weekend meeting did not agree on concrete steps to stop competitive currency devaluations.
"The differences still persist between countries as to what constitutes proper monetary and currency policy," said Daniel Briesemann, analyst at Frankfurt-based Commerzbank.

GLOBAL MARKETS: Absence of firm G20 pact sends dollar lower
NEW YORK, Oct 25 (Reuters) - Investors on Monday continued a familiar pattern of heavily selling dollars and buying emerging-market shares, calculating that a Group of 20 meeting that produced no firm policy initiatives would leave market trends unchanged.
"By demanding 'market determined exchange rates' (at the G20) the U.S is opening the floodgates for a further dollar depreciation due to the ultra-expansionary monetary policy in the U.S.," Commerzbank analysts said in a note.

China raises fuel prices 3 pct, to tweak scheme
BEIJING, Oct 25 (Reuters) - China will raise retail fuel prices by about 3 percent from Tuesday in its first hike in 7 months, a move bringing prices back to near record highs but unlikely to dampen oil demand in the world number-two consumer.
Retail ceiling prices for gasoline will increase by 230 yuan ($34.54) per tonne and diesel by 220 yuan, the government said on Monday, confirming an earlier Reuters report.

PRECIOUS-Gold up, palladium highest since 2001 on dollar
LONDON, Oct 25 (Reuters) - Gold rose more than one percent on Monday and palladium hit its highest in nearly a decade, as the dollar fell after weekend comments at the G20 meeting and investors awaited a speech by the Federal Reserve Chairman.
"This is to do with the fact that the G20 communique failed to produce anything concrete on the coordinated exchange rates policy," Andrey Kryuchenkov, analyst with VTB Capital, said of the dollar's loss and gold's subsequent rise.

FOREX-Dollar's woes resume after G20, Fed in focus
LONDON, Oct 25 (Reuters) - The dollar dropped broadly on Monday, hitting a 15-year low versus the yen, as a Group of 20 agreement to shun competitive currency devaluations was taken as a green light to resume dollar-selling by investors.
"The G-20 was seen as a hurdle by some and now that is over, investors are back to do what they are most comfortable with -- dollar-selling," said Ankita Dudani, G-10 currency strategist at RBS.

Absence of firm G20 pact sends dollar lower
LONDON, Oct 25 (Reuters) - Investors ploughed a familiar furrow of selling dollars and buying emerging shares, concluding a Group of 20 meeting that produced lots of noise but no firm policy initiatives had left market trends unchanged.
"By demanding "market determined exchange rates" (at the G20) the U.S is opening the floodgates for a further dollar depreciation due to the ultra-expansionary monetary policy in the U.S," Commerzbank said.

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