Monday, December 17, 2012
20121217 1108 Global Markets & Energy Related News.
GLOBAL MARKETS-Yen fall boosts Nikkei, Asian shares pause on "fiscal cliff"
TOKYO, Dec 17 (Reuters) - The Liberal Democratic Party of Japan's electoral triumph propelled the yen to a 20-month low that saw the Nikkei stock average open up 1.6 percent on expectations of much better export earnings.
"I think that the policies that Abe plans to introduce will only serve to weaken the yen even further. If there is an unwinding opportunity, it will likely be short lived, maybe falling back to 82 or so on the USD/JPY," said Neal Gilbert, market strategist at GFT Forex.
FOREX-Yen slumps to 20-mth low following LDP victory
SYDNEY, Dec 17 (Reuters) - The yen slumped to its lowest in over a year-and-a-half against the U.S. dollar as part of a broad skid after Japan's conservative LDP party, pledged to hyper-easy monetary policy, won a landslide victory at an election.
"Our view is that PM Abe is unlikely to sound as aggressive as he came across as the leader of the opposition. We also believe markets are putting too much emphasis on the BoJ policy and too little on the Fed's, especially after the latter fully delivered last week," strategist Vassili Serebriakov wrote in a report.
Boehner opens door to tax hikes, shifts US fiscal cliff talks
WASHINGTON, Dec 16 (Reuters) - U.S. House of Representatives Speaker John Boehner's offer to accept a tax rate increase for the wealthiest Americans knocks down a key Republican road block to a deal resolving the year-end "fiscal cliff."
The question now boils down to what President Barack Obama offers in return. Such major questions, still unanswered so close to the end of the year suggest, however, that no spending and tax agreement is imminent.
Oil rises on China data as January Brent nears expiry
NEW YORK, Dec 14 (Reuters) - Oil prices rose on Friday on expectations for improved demand in China after data showed the manufacturing sector of the world's No. 2 oil consumer expanded in December at its fastest pace in more than a year.
"Oil is particularly dominated by Chinese potential demand, and any sign of an upturn in China tends to have a positive effect on oil," said Tony Machacek, a broker at Jefferies Bache in London.
Posted by MW Chong at 11:08 AM