Monday, November 8, 2010

20101108 0948 Global Market News.

OIL: Crude rises above $87/bbl to near 2-yr high
TOKYO, Nov 8 (Reuters) - U.S. crude futures extended gains for a sixth day to near a two-year high above $87 a barrel on Monday, getting support from a stronger-than-expected U.S. jobs report that restored confidence in the world's top oil consumer.
Oil was trading near $87.43 hit on Friday, the highest intraday price since $89.82 struck on Oct. 9, 2008. Prices rose $5.42, or 6.6 percent, last week, the biggest percentage gain since the week to Feb. 19.

COMMODITY MARKETS: Gold hits record high on inflation outlook
NEW YORK/LONDON Nov 5 (Reuters) - Gold hit a record peak on Friday and industrial metals and oil pushed higher as investors took a surprisingly robust U.S. jobs report as a hint that the economy was in better shape than previously thought.
"We will see the dollar in a protracted secular bear market and see commodities rise across the board," said Michael Pento, senior economist with Euro Pacific Capital in New York.

GLOBAL MARKETS: Dollar jumps, stocks hold gains on US jobs data
NEW YORK, Nov 5 (Reuters) - The dollar soared and stocks posted modest gains on Friday after better-than-expected U.S. jobs data fueled hopes of faster economic recovery.
"It's both better than people had been looking for, and it's another nail in the coffin of a double dip," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, referring to fears the economy would slide back into recession.

China belittles U.S. initiatives ahead of G20
BEIJING/BERLIN, Japan, Nov 5 (Reuters) - China rebuffed on Friday a U.S. plan to set target limits for trade imbalances and Germany dubbed the Fed's money-printing policy "clueless", setting the stage for what could be a fractious G20 summit next week.
Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world's second-largest economy.

BOJ holds fire after Fed, gets asset buying plan going
TOKYO, Nov 5 (Reuters) - The Bank of Japan refrained from  further monetary easing on Friday, resisting for now any temptation to boost its asset buying scheme to keep pace with the Federal Reserve's new economic stimulus.
The BOJ is the third major central bank to hold fire after the Fed's Nov. 3 move to pump $600 billion more into the struggling U.S. economy by buying government bonds.

Singapore vies for London's shipping crown
LONDON/SINGAPORE, Nov 4 (Reuters) - London's position as the world's top shipping hub is being challenged by emerging contenders such as Singapore and possibly Shanghai as rising Asian economic powerhouses China and India suck in goods.
Chinese commodity demand is an increasingly pivotal factor driving freight market activity eastwards, while Asia dominates shipbuilding. Indian appetite for raw materials is also set to grow in the coming years, all enabling Singapore to set out its stall as a centre for the ship industry.

PRECIOUS-Gold dips as economic sentiment improves post-Fed
LONDON, Nov 5 (Reuters) - Gold hit a fresh record around $1,394 an ounce on Friday, before turning lower as the dollar firmed and the U.S. Federal Reserve's decision to buy more government bonds earlier this week improved risk sentiment.
Spot gold  traded at $1,383.30 an ounce at 1036 GMT, against $1,392.25 late in New York on Thursday. U.S. gold futures for December delivery  traded at $1,383.2.

FOREX-Dlr near lows, jobs data unlikely to offer succour
LONDON, Nov 5 (Reuters) - The dollar was mired near 11-month lows against a basket of currencies on Friday, while the Australian dollar hit 28-year highs as the Federal Reserve's stimulus package spurred investors appetite for risk.
Investor focus now turns to U.S. monthly jobs data and traders said any upside surprise from the numbers is likely to offer only a fleeting respite to the dollar. A weaker number could see the dollar-selling trend gather pace.

Bulls rule as stocks, commodities climb
HONG KONG, Nov 5 (Reuters) - Asian stocks rose for a fifth day, with commodity-related shares helping regional markets outperform other parts of the world this week after U.S. Federal Reserve action revived a move into riskier assets.
"What QE2 has done is that it added confidence to our view," said Shane Oliver, director of investment strategy and chief economist for AMP Capital in Sydney.

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