Dollar falls, commodities jump after G20
HONG KONG, Oct 25 (Reuters) - The dollar fell broadly after a Group of 20 meeting produced enough agreement despite discordant policies to keep the status quo on the trade of selling the U.S. currency and buying stocks and commodities such as gold.
"It looks like the market has taken the G20 as a green light to continue with the trends up to that point, which have been towards U.S. dollar weakness," said Sue Trinh, senior FX strategist at Royal Bank of Canada in Hong Kong.
OIL: Crude gains; U.S. data shows stimulus needed
SINGAPORE, Oct 22 (Reuters) - Oil rose on Friday after jobs and business activity data signalled the U.S. economy would require additional stimulus, while G20 finance ministers meet in South Korea as dollar volatility rattles commodities markets.
A batch of new U.S. data on Thursday painted a picture of an economy stuck in slow-growth mode, reinforcing views the Federal Reserve will ease monetary policy further next month to try to reinvigorate the recovery.
COMMODITY MARKETS: Most markets slump as dollar rises; coffee jumps
NEW YORK, Oct 21 (Reuters) - Oil, gold and grains slumped on Thursday, pressured by the dollar's rebound in a volatile week during which most commodities took their direction from the currency.
"There is little on the horizon that has the potential to derail the short dollar/long commodity trade that still seems to be the driving force behind most strategies," said Edward Meir, energy and metals analyst at MF Global in New York.
GLOBAL MARKETS: Dollar rebounds, stocks edge up ahead of G20
NEW YORK, Oct 21 (Reuters) - The dollar rebounded from earlier losses in volatile trade on Thursday amid questions about the extent of the Federal Reserve's economic stimulus measures, while world stocks edged higher in tandem with the U.S. currency's turnabout.
"Since it is clear that the direction is toward an expansion of quantitative easing (in the United States), it is hard to expect a sustained rebound in the dollar," said Taisuke Tanaka, FX strategist at Nomura Securities in Tokyo.
Stocks up, dollar down as G20, earnings awaited
LONDON, Oct 21 (Reuters) - World stocks ticked higher and the dollar slipped against a backdrop of nerves about political currency machinations as well as caution about corporate earnings.
"Since it is clear that the direction is toward an expansion of quantitative easing (in the United States), it is hard to exsustained rebound in the dollar," said Taisuke Tanaka, FX strategist at Nomura Securities in Tokyo.
ANALYSIS-China rate hike seen calming, not cooling, commodities
BEIJING, Oct 20 (Reuters) - China's interest rate hike on Wednesday could signal a period of slower, steadier growth for commodities prices, as the central bank tightens just enough -- but not too much.
The rate hike by the People's Bank of China was both a vote of confidence in the economic recovery and an antidote to speculation, which is booming because inflation is higher than interest rates, encouraging people to park their savings in hard assets.
China's port of Shenzhen shut ahead of typhoon
SINGAPORE, Oct 21 (Reuters) - China's major port of Shenzhen was shut down on Thursday ahead of Typhoon Megi, which is expected to make landfall this weekend east of Hong Kong, a shipping agent said.
"Yes, Shenzhen port is shut down now," said an agent with shipping and logistics firm GAC in Shenzhen.
Morgan Stanley overtakes Goldman in commodity risk
NEW YORK, Oct 20 (Reuters) - Morgan Stanley raised its commodities trading risk in the third quarter, overshooting Goldman Sachs the first time since 2007 and standing apart from major rivals that have pared risk as new regulations loom.
Morgan Stanley posted a surprising $91 million net loss during the quarter, falling further behind Goldman, which beat market expectations with a $1.9 billion profit. Investors were also disappointed to see the largest investment bank after Goldman in the red after encouraging results in the same period from lesser rivals such as Citigroup.
PRECIOUS-Gold edges higher as dollar eases
LONDON, Oct 21 (Reuters) - Gold steadied above $1,340 an ounce on Thursday, as waning investor interest was offset by a pull-back in the dollar ahead of a key G20 meeting and after currency remarks from U.S. Treasury Secretary Tim Geithner.
"Despite the renewed dollar weakness, we've been struggling to regain traction to the upside. There have been a lot of investors going into gold already and probably at this juncture, would probably be a little hesitant, because now everyone is focusing on currency moves and the outcome of what could happen at the weekend," said Ole Hansen, a senior manager at Saxo Bank.
FOREX-Dollar trims gains made on Geithner comments
LONDON, Oct 21 (Reuters) - The dollar trimmed gains against the euro on Thursday as investors reckoned comments from U.S. Treasury Secretary Timothy Geithner may not have warranted a brief jump in the U.S. currency earlier in the day.
"What Geithner said was not targeted at the U.S. dollar. He was making his position clear before the G20 that the U.S. would not fight everybody on FX, just China," said Ulrich Leuchtmann, currency strategist at Commerzbank in Frankfurt.
Oil falls on Geithner comments, China slowdown
SINGAPORE, Oct 21 (Reuters) - Oil declined as the dollar strengthened after U.S. Treasury Secretary Timothy Geithner said there was no deliberate policy to devalue the currency, while China's economy slowed in the third quarter.
"The market is uncertain about how a tightening policy in China will impact on growth," said David Taylor, an analyst at CMC Markets in Sydney. "The China growth story is crucial to the sustainability of the Asian region."
China Sept power output growth slowest since March
BEIJING, Oct 21 (Reuters) - China's electricity output in September grew at the slowest pace since March this year amid a final nationwide push to curb energy use and reach energy efficiency goals.
Data from the National Bureau of Statistics showed on Thursday that power generation increased 8.1 percent from a year earlier to 348.7 billion kilowatt hours last month, a rate sharply down from August's 12.6 percent growth.
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