20101109 0851 Global Market News.

Oil falls first day in seven on euro zone woes
SINGAPORE, Nov 9 (Reuters) - Oil fell for the first session in seven as concern about euro zone debt provided support for the dollar, while forecasts indicated U.S. crude stockpiles rose for a fifth time in six weeks.
"It's just a general return to risk aversion that is driving the markets today," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.

Nov. 9 (Bloomberg) -

- The yen rose to a one-week high against the euro after China said it will curb the flow of “hot money” into its economy and as speculation increased that European nations will struggle to raise funds. Asian stocks retreated from a two-year high and bond risk increased. The yen advanced to 112.24 per euro as of 3:10 p.m. in Tokyo from 113.01 in New York yesterday, and the 16-nation currency weakened versus 13 of its 16 major counterparts. The MSCI Asia Pacific Index fell 0.2 percent, snapping a six-day, 4.6 percent rally. Futures on the Standard & Poor’s 500 Index slid 0.3 percent. The cost of insuring Asian bonds against non- payment rose by the most in almost a month, according to credit- default swaps traders.

OIL: Crude falls from 2-year high to below $87/bbl
TOKYO, Nov 9 (Reuters) - U.S. crude futures retreated from a two-year high to fall below $87 a barrel on Tuesday, after jumping almost 7 percent in the previous six sessions, as the dollar recovered some ground.
"While the price is inching up, we think the terms of trade are going against OPEC countries and the increase in the price did not even compensate for the loss in the dollar value and the increase in the price of commodities," said Shokri Ghanem, chairman of Libya's National Oil Corporation.

COMMODITY MARKETS: Markets rally despite dollar; gold above $1,400
NEW YORK/LONDON, Nov 8 (Reuters) - Gold climbed to an all-time record high on Monday for a third running day, powered by worries over Ireland's debt, while oil and copper hit multi-year peaks as the Federal Reserve's move to bolster the
"Investors are looking for real assets and almost all commodities are benefiting from that as a class," said Carsten Fritsch, an analyst at Germany's Commerzbank.

GLOBAL MARKETS: World stocks pause from rally as dollar rises
NEW YORK, Nov 8 (Reuters) - World stocks weakened on Monday as renewed European debt concerns and a sign of recovery for the U.S. labor market sent the euro reeling versus the dollar, while gold surged on inflation worry.
"We're finally seeing the market turn its gaze away from Fed easing and toward these ongoing problems in peripheral Europe," said Matthew Strauss, senior strategist at RBC Capital Markets in Toronto.

PRECIOUS-Gold down but remains within sight of record
LONDON, Nov 8 (Reuters) - Gold slipped for the first time in three sessions on Monday but remained near record highs after a pick-up in the dollar dented precious metals prices. The gold price has risen by about 5 percent in the last five trading days, driven by the drop in the U.S. currency after the Federal Reserve last week detailed its plans to buy over half a trillion dollars' worth of Treasuries to revive the economy.

FOREX-Euro hurt as peripheral debt jitters resurface
LONDON, Nov 8 (Reuters) - The euro fell broadly on Monday on renewed concerns about euro zone peripheral debt while Friday's solid U.S. jobs data supported the dollar.
With the U.S. Federal Reserve's decision to launch more quantitative easing out of the way, euro zone debt problems seemed to have resurfaced on traders' radars.

Bernanke answers Fed's global critics
JACKSONVILLE, Fla., Nov 5 (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday defended the U.S. central bank's bond-buying against beggar-thy-neighbor criticism, saying the return to a strong U.S. economy was critical for global stability.
He suggested doing so would bolster a dollar whose weakness has sparked cries of foul from Bogota to Beijing.

Global anger swells at U.S. Fed actions
WASHINGTON/BEIJING, Nov 5 (Reuters) - Global anger at a fresh round of liquidity injections into the U.S. economy swelled on Friday as Germany called the move "clueless" and emerging nations protested that it will wreak havoc on them.
Harsh criticism poured in as President Barack Obama headed for Asia on a trip he had hoped to use as a springboard for pressuring China to revalue its yuan but may end up in a fractious Group of 20 leaders summit next week.

World Bank chief surprises with gold standard idea
LONDON, Nov 8 (Reuters) - Leading economies should consider adopting a modified global gold standard to guide currency rates, World Bank president Robert Zoellick said on Monday in a surprise proposal before a potentially acrimonious G20 summit.
Writing in the Financial Times, Zoellick called for a "Bretton Woods II" system of floating currencies as a successor to the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.

Gold hits new high, dollar rebounds
LONDON, Nov 8 (Reuters) - Gold hit a new high, stoked by rising inflation expectations following the Federal Reserve's return to asset buying, and the dollar gained in a hang-over from last week's relatively upbeat U.S. jobs data.
"As we've had a good run on positive U.S. data, the market is buying back an oversold dollar," said Keiji Matsumoto, strategist at Nikko Cordial Securities.