Monday, October 25, 2010

20101025 0858 Global Market News.

OIL: Crude climbs ahead of Bernanke speech
SINGAPORE, Oct 25 (Reuters) - Oil rose on Monday as the dollar weakened ahead of a speech by Fed chief Ben Bernanke, where he could outline details of an expected new round of U.S. monetary stimulus, after G20 finance ministers agreed to shun competitive currency devaluations.
Market players were keenly waiting to see if Federal Reserve Chairman Bernanke would indicate how much Treasury bonds the U.S. central bank is likely buy, in a highly anticipated move to pump more money to shore up a faltering economy. Bernanke is due to speak at a conference at 1230 GMT.

COMMODITY MARKETS: Risk assets focus on Fed after G20 nod
LONDON, Oct 24 (Reuters) - Copper and other growth-linked commodities are likely to stay focused on future U.S. policy easing as a driver, although the G20's hardened stance towards exchange rates could help unsettle an amply-supplied oil market.
"There's some token partnership in working together, but there's nothing formal that's going to change the amount of liquidity," said Patrick Armstrong of London-based Armstrong Investment Managers.

GLOBAL MARKETS: Dollar slides, commodities rise after G20
HONG KONG, Oct 25 (Reuters) - The dollar slid against yen and other Asian currencies on Monday after a Group of 20 meeting produced enough agreement to keep a status quo trade of selling the U.S. currency and buying equities and commodities such as gold.
While the international meeting did not reach a consensus on details such as numerical targets for a country's economic imbalances, the G20 found common ground on the need for more "market oriented" exchange rates and concluded with a shift in power to developing economies in the International Monetary Fund -- enough to avert an all-out currency war, for now.

BP to miss Big Oil's bumper Q3 due to oil spill
LONDON, Oct 22 (Reuters) - BP's  Gulf of Mexico oil spill meant it missed out on an industry-wide trend of higher profits and rising production in the third quarter, according to a Reuters poll.
BP's third-quarter replacement cost profit was forecast down 2 percent to $4.60 billion despite a 12 percent rise in crude prices, a 29 percent hike in U.S. natural gas prices and a doubling in British gas prices, the poll found. 

PRECIOUS-Gold hits 2-1/2 week low as dollar steadies
LONDON, Oct 22 (Reuters) - Gold hit its lowest in more than two weeks in Europe on Friday as the dollar steadied amid wariness over whether any clear agreement to tackle currency imbalances will be reached at this weekend's G20 meeting.
"The main pressure is the dollar, but also profit-taking," said Commerzbank analyst Eugen Weinberg.

FOREX-Dlr steadies as caution sets in ahead of G20 meeting
LONDON, Oct 22 (Reuters) - The dollar steadied on Friday as investors hesitated about extending bearish bets against the greenback on uncertainty over whether any agreement would be reached at a weekend meeting of Group of 20 finance leaders.
"A new currency accord will be hard to achieve in principle and even harder to push through in practice, over the hurdles of domestic political pragmatism," said Lena Komileva, head of G7 market economics at Tullett Prebon.

Dollar slides before G20, gold and oil rise
HONG KONG, Oct 22 (Reuters) - The dollar fell on Friday on speculation a U.S. plan that included letting undervalued currencies strengthen would gain support at a contentious weekend Group of 20 meeting, lifting gold and oil prices.
"We believe that timing is right to add additional short USD exposure vs. EUR," they said in a note. "Since we believe that apparent widespread expectation for coordinated action to manage the USD's decline will not be met, we suspect that disappointment could translate into a further broad based decline in USD."

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