Stocks, metals and JGBs jump on easing hopes
SINGAPORE, Oct 6 (Reuters) - Stocks, metals and Japanese government debt rose and the dollar fell after fresh monetary easing moves by the Bank of Japan spurred expectations of a new round of central bank action to boost ailing economies.
"beggar-thy-neighbour" currency wars, with International Monetary Fund chief Dominique Strauss-Kahn warning that countries risk undermining the global recovery if they use their currencies to try and boost domestic growth.
Gold hits fresh record high on dollar, stimulus hope
SINGAPORE, Oct 6 (Reuters) - Gold hit a fresh record high, the eighth in the past nine consecutive sessions, riding on dollar weakness and market anticipation on more quantitative easing from the U.S. Federal Reserve.
"The BoJ announcement yesterday to keep rate low signalled more QE (quantitative easing) in the market, and investors are losing interest in currencies and buying gold," said a Singapore-based dealer, expecting the next resistance level for gold at $1,350.
Oil falls on bigger-than-forecast U.S. crude stockpile gain
SINGAPORE, Oct 6 (Reuters) - Oil slipped from a five-month high after an industry report showed U.S. crude stockpiles jumped more than forecast last week, a sign oversupply may persist despite central bank efforts to shore up economies.
"It's just profit taking after a sharp rise last night," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
COMMODITY MARKETS: Gold at record, markets jump after Japan rate cut
NEW YORK, Oct 5 (Reuters) - Gold surged to record highs and copper to two-year peaks on Tuesday after a surprise interest rate cut by Japan weakened the dollar and reignited a broad-based commodities rally.
"Everything is just exploding on the upside," Robin Bhar, a metals analyst at Credit Agricole in London, said. "The new event really overnight was the BOJ."
GLOBAL MARKETS: Stocks surge, dollar falls on world stimulus hope
NEW YORK, Oct 5 (Reuters) - World stocks surged to a five-month high and the U.S. dollar fell broadly on Tuesday after the Bank of Japan unexpectedly cut interest rates, fueling speculation that other governments will take additional actions to reinvigorate the global economic recovery.
"The thinking today is that the printing of money is going to take place," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Yen falls on BOJ surprise; stocks and gold rise
LONDON, Oct 5 (Reuters) - The yen fell and world stocks rose after the Bank of Japan's surprising and aggressive action to pump more funds into the flagging economy, though gold hit a record high on fears of long-term inflation.
"A surprise move by the Bank of Japan shows the authorities will be working hard to ensure a recovery will be supported," said Henk Potts, strategist at Barclays Wealth in London.
U.S. housing shows stability, factory orders fall
WASHINGTON, Oct 4 (Reuters) - Pending sales of previously owned U.S. homes hit a four-month high in August, a sign the housing market was stabilizing at very low levels following its sharp drop after a home-buyer tax credit expired.
Another report on Monday showed new orders received by U.S. factories fell 0.5 percent in August, although they were up 0.9 percent excluding volatile transportation bookings.
BOJ reverts to zero rates in surprise move
TOKYO, Oct 5 (Reuters) - The Bank of Japan on Tuesday effectively reverted to zero interest rates on growing signs the strong yen is hurting a fragile economy, surprising markets and preceding the Federal Reserve in stepping up its expansionary monetary policy.
The central bank also decided to set up, as a temporary measure, a 5 trillion yen ($60 billion) fund to buy assets ranging from government bonds and short-term government securities to commercial paper and corporate bonds, and will also accept another 30 trillion yen of those assets as collateral under a loan scheme.
PRECIOUS-Gold hits record above $1,325/oz as dollar slides
LONDON, Oct 5 (Reuters) - Gold rallied to record highs above $1,325 an ounce in Europe on Tuesday as the dollar slipped sharply against the euro, with recent volatility in the currency markets boosting demand for the metal as a safe store of value.
"This morning it is a dollar-related move, but it is also the wider currency issues that have been highlighted by an increasing number of commentators," said Tom Kendall, an analyst at Credit Suisse.
FOREX-Euro jumps vs dollar, yen trims post-BOJ loss
LONDON, Oct 5 (Reuters) - The euro jumped against the dollar on Tuesday on reported Asian buying, pushing the greenback to an 8-1/2 month trade-weighted low, while the yen trimmed earlier falls against the U.S. currency.
"The yen falls after the BOJ decision looked unlikely to last. When rates were so close to zero anyway a further rate cut will make very little difference," said Elsa Lignos, currency strategist at RBC.
