20101014 0912 Global Market News.

OIL: Crude rallies as dollar slides further
SINGAPORE, Oct 14 (Reuters) - Oil rose for a second day on Thursday, approaching five-month highs, dragged higher by a broad-based rally in commodities as investors dump the dollar in a flight to value-preserving assets. U.S. crude inventories fell unexpectedly last week, partly because of the closure of the Houston Ship Channel, shedding 4 million barrels compared to an expected increase of 1.1 million, the American Petroleum Institute (API) said on Wednesday. 

COMMODITY MARKETS: Copper, gold jump as dollar drops; CRB hits 300
NEW YORK, Oct 13 (Reuters) - Copper hit 27-month highs and gold returned to record peaks on Wednesday, propelling a widely watched commodity index to a two-year high as the dollar weakened again on expectations that the U.S. Federal Reserve will soon start a new round of monetary easing.
"The CRB is looking all vertical now and so are many commodities and this is great for market bulls, but the truth is we are close to exhaustion on many of these rallies," said Shawn Hackett, president at Hackett Financial Advisors, a money manager in soft commodities in Boynton Beach, Florida.

GLOBAL MARKETS: Stocks at 6-month high, gold hits record on Fed
NEW YORK, Oct 13 (Reuters) - World stocks jumped to a six-month high, gold hit another record, and the dollar weakened on Wednesday on expectations that the Federal Reserve will further loosen monetary policy, boosting risk appetite.
Gold prices reached an all-time high of $1,374.15 an ounce as investors sought protection against a sinking dollar. Other commodities also climbed -- oil prices shot up 1.6 percent to close just above $83 a barrel.
"The Fed minutes certainly induced a rally right across the board," said Peter Cardillo, chief market economist at Avalon Partners in New York.

PRECIOUS-Gold at 1-wk high as Fed signal sinks dollar
LONDON, Oct 13 (Reuters) - Gold held at its highest in nearly a week on Wednesday after the Federal Reserve signalled the U.S. economy may need extra stimulus, which hit the dollar, while evidence of strong investment demand lifted palladium.
"We're still very bullish. In May, we outlined $1,600 was our target. I guess that was quite aggressive at the time and now we see everybody migrating towards that level," said Deutsche Bank analyst Michael Lewis.

FOREX-Dollar falls, euro up on contrasting policy views
LONDON, Oct 13 (Reuters) - The dollar came under broad selling pressure on Wednesday, with investors pushing it towards key lows against the euro, the Swiss franc and a basket of currencies on more signs pointing to U.S. monetary easing.
"Little has changed on the dollar front, but more QE from the Fed has now become more of a likely reality," said Neil Mellor, currency strategist at Bank of New York Mellon.

World stocks hit 5-month high after Fed
LONDON, Oct 13 (Reuters) - World stocks hit a five-month high on Wednesday while emerging market equities held near a recent 27-month peak, driven by expectations of more money printing in the United States and upbeat corporate reports.
"We saw from the FOMC minutes that there is little doubt that a further round of (quantitative easing) is likely to happen at the next meeting," David Morrison, market strategist at GFT Global said.