Wednesday, February 23, 2011

20110223 0914 Global Market Related News.

ECB policymakers ratchet up inflation warnings
HONG KONG/FRANKFURT, Feb 21 (Reuters) - ECB policymakers sent a fresh round of inflation warnings on Monday, as euro-zone data showed the region's economic recovery remained robust and likely to keep upward pressure on prices.
ECB policymakers have sounded increasingly aggressive on inflation this year since it topped the bank's target of just under two percent.

Yuan convertibility may quicken - PBOC official
HONG KONG, Feb 22 (Reuters) - The pace of the yuan's convertibility may accelerate as global demand grows for trade settlement in the Chinese currency, a Chinese central bank official said.
"If you look at the history and the progress of international use of our renminbi (yuan), you find that sometimes demand grows very quickly," said Xing Yujing, deputy director general of the monetary policy department of the People's Bank of China.

PRECIOUS-Gold eases from 7-wk peak, Middle East in focus
LONDON, Feb 22 (Reuters) - Gold fell on Tuesday following six days of gains, as a rising dollar outweighed safe-haven demand arising from violence in the Middle East, and silver was set for its largest slide in a month.
Deadly protests in Libya pushed oil prices to 2-1/2 year highs, fanning fears of inflation and undermining investor confidence in the global economic outlook.

FOREX-Euro down, 'safe-haven' FX rallies on Libya
LONDON, Feb 22 (Reuters) - The euro fell on Tuesday while the dollar rallied broadly after escalating political tension in Libya prompted selling in higher-yielding assets for the safety of the U.S. currency and also the Swiss franc.
The New Zealand dollar hit a near two-month low against its U.S. counterpart on speculation that the economic damage caused by an earthquake which rocked the country's second biggest city may increase the chance of an interest rate cut.

Oil surge prompts stock sell-off, dollar rally
LONDON, Feb 22 (Reuters) - World stocks fell nearly 1 percent as revolt in Libya drove oil prices sharply higher, prompting fears of disruption to global economic growth.
"Investors are scaling down on exposure across the board," said Richard Falkenhall, currency strategist at SEB in Stockholm. "Libya is the first major oil exporting country to be affected ... if this spreads to other oil exporting countries, it will not be a good sign."

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