Thursday, November 4, 2010

20101104 0929 Global Market News.

OIL: Crude rises as Fed stimulus weakens dollar
SINGAPORE, Nov 4 (Reuters) - Oil rose for a fourth straight day on Thursday, trading near six-month highs, as the dollar weakened after the U.S. Federal Reserve met market expectations with a plan to buy government debt to boost the economy.
The U.S. central bank said it would buy around $75 billion in Treasury bonds per month through mid-2011, totaling around $600 billion.

COMMODITY MARKETS: Gold dives further after Fed; most markets unmoved
NEW YORK, Nov 3 (Reuters) - Gold fell sharply but most commodities barely budged on Wednesday after the U.S. Federal Reserve decided, as expected, to buy billions of dollars in government debt to boost the economy, prompting investors to return their focus to economics and fundamentals.
"The Fed statement today basically removes a large overhang from the markets and the question is what we'll trade off from here," said Adam Sarhan at New York's Sarhan Capital. "To me, the demand equation for most commodities remains strong and supply remains challenging. That'll be the focus going forth."

GLOBAL MARKETS: Dollar steady, Asia stocks climb after Fed
HONG KONG, Nov 4 (Reuters) - Japanese stocks rallied 2 percent on Thursday after the Federal Reserve's new bond buying programme was close enough to expectations to keep investors selling yen and searching for higher-yielding assets.
"By undertaking more Treasury bond purchases, the hope is that risk appetite will provide the catalyst for people to spend, particularly corporates," Sean Darby, Asia strategist with Nomura in Hong Kong, said in a note. 

ANALYSTS VIEW-Commodities seen rising after Fed
NEW YORK, Nov 2 (Reuters) -Commodity and forex markets expectations range from $250 billion to $2 trillion of bond purchases by the Fed in a second round of quantitative easing. Traders are bracing for a quick rise in the dollar -- and commensurate fall in commodities -- if the Fed takes a less aggressive approach.
The dollar has lost about 7 percent against a basket of currencies over the past two months on speculation that the Fed will commence so-called QE2, as signaled by Chairman Ben Bernanke on Aug 27.

PRECIOUS-Gold slips, investors stay away before Fed outcome
SINGAPORE, Nov 3 (Reuters) - Gold inched down on Wednesday despite a weaker dollar as investors stayed on the sidelines before an expected U.S. Federal Reserve decision to pump hundreds of billions of dollars into the sluggish economy.
The outcome of the Fed meeting would be bullish for assets such as gold if the central bank commits to buying at least $500 billion in Treasuries over five months, as per expectations, but dealers are not ruling out surprises.

FOREX-Dollar steadier as Fed decision looms
SYDNEY, Nov 3 (Reuters) - The euro struggled on Wednesday to push higher above $1.4000 against the U.S. dollar, which remained on the backfoot as the Federal Reserve looked set to provide more stimulus to spur a flagging recovery.
Traders said the market was unwilling to make new bets ahead of

US soybeans, corn firm ahead of Fed meeting outcome
SYDNEY, Nov 3 (Reuters) - U.S. soybeans and grain futures posted modest gains as the dollar held steady ahead of the outcome of the U.S. Federal Reserve's policy meeting later in the day.
"Longer term, the market is looking at competition for acres in the United States between corn and soybeans," said Brett Cooper, senior manager markets at FCStone Australia.

Stocks hit 2-yr highs, dlr pressured before Fed
LONDON, Nov 3 (Reuters) - World stocks hit a two-year high while emerging equities rose to their highest level since mid-2008 as investors anticipated more U.S. monetary easing would support the global economy.
"If they deliver a policy, which at the very least is in line with the consensus and potentially offers some hope of a greater eventual number being reached, then you have got your short term catalyst for this market to go up," said Ian Richards, European equity strategist at RBS.

No comments: