2010/10/07 18:00*DJ German Aug Indus Output Forecast +0.7% MM
2010/10/07 18:00*DJ German Aug Mfg Output +1.8% MM; Construction -0.4% MM
2010/10/07 18:00*DJ German Aug Unadjusted Indus Output +14.4% YY
2010/10/07 18:00*DJ German Aug Indus Output Adj +1.7% MM; +10.7% YY
2010/10/07 17:39=DJ MONEY TALKS: BOJ Fires At Yen, But Will Hit Dollar Instead
2010/10/07 17:30=DJ DATA SNAP: UK Aug Manufacturing Output +6.0%, Highest Since Dec 1994
2010/10/07 17:24*DJ Dollar Now At IDR8,920; Unchanged From Late Wednesday
2010/10/07 16:55DJ Japan MOF Sakurai: Japan Trying To Weaken Yen For Own Economy
TOKYO -A senior Japanese finance ministry official said Thursday that Japan has been taking measures to weaken the yen for the benefit of its own economy, although it may be difficult to win the understanding of the Group of Seven advanced industrial nations. Japan is 'taking steps for our own economy,' said Senior Vice Finance Minister Mitsuru Sakurai said at a press conference when asked how Japan views the apparent currency-devaluation trend around the globe. 'I'm aware that each country has been facing difficulties in overcoming its own economic problems,' he said. But he added: 'I think it may be difficult to steer discussion on foreign exchange issues as Japan hopes' at the G-7 meeting slated to be held in Washington later this week. He made the remarks after the U.S. dollar renewed its 15-year low against the yen earlier Thursday.
2010/10/07 16:31*DJ UK Aug Indus Production Forecast +0.3% MM, +4.2% YY
2010/10/07 16:31*DJ UK 3Mo Mfg Output +0.7%; 3Mo Industrial Production Unch
2010/10/07 16:31*DJ UK Aug Industrial Production +0.3% On Mo; +4.2% On Yr
2010/10/07 16:31*DJ UK Jul Mfg Revised To +0.4% On Mo, +5.0% On Yr
2010/10/07 16:31*DJ UK Aug Mfg Output Was Forecast At +0.2% MM, +5.8% YY
2010/10/07 16:30*DJ UK Aug Mfg Output +0.3% On Mo, +6.0% On Yr
2010/10/07 16:09*DJ Japan Govt Sengoku: Govt Aims To Submit Extra Budget To Diet By End Of Oct - Kyodo
2010/10/07 16:07=DJ PRECIOUS METALS: Gold, Silver, PGMs All Rally Hard In Asia
2010/10/07 15:57DJ JGBs Fall On Profit-Taking; 10-Year Auction Results "Fair"
TOKYO -Japanese government bonds ended lower Thursday, as market participants took profits after the release of the results of a closely watched key 10-year auction. However in the long run, "it is likely to remain difficult for players to sell JGBs until the next (Federal Open Market Committee meeting Nov. 2-3). Even if the market experiences a temporary downward correction, interest in JGBs will likely return," said Makoto Yamashita, a strategist at Deutsche Securities. Yamashita tips the benchmark 10-year cash JGB yield to fall as low as 0.78% if key nonfarm payroll data for September due Friday show weakness in the U.S. economy, fueling speculation there could be an easing competition between the U.S. and Japan. The 10-year yield rose 2.0 basis points to 0.855% as of 0600 GMT. At an auction earlier in the day, new 10-year JGBs received fair demand as the Bank of Japan's monetary easing increased the attractiveness of long-term bonds. But analysts said the lowest coupon in more than seven years limited aggressive bidding. Japan's Ministry of Finance sold Y2.007 trillion of the 10-year JGBs at a lowest price of 99.60, exactly in line with market expectations, yielding 0.843%. The new bonds carry a coupon of 0.8%, the lowest level since June 2003. "There's no more room for a further decline in five-year yields or shorter, which are affected by the BOJ's policy," said Nobuto Yamazaki, executive fund manager at DLIBJ Asset Management. "The 10-year sector or longer are the only areas where players are still willing to buy." At the longer end of the curve, the 10-year zone, which has a broad investor base, will likely be the most popular choice, Yamazaki said. Players may be a bit cautious about buying 20- and 30-year bonds because their yields had already declined well below levels that life insurers--the main buyers of the zone--are eager to buy, increasing concerns about the supply and demand balance, he added.
2010/10/07 15:46*DJ U.S. Dollar Touches S$1.3035; Now At S$1.3040 Vs S$1.3094 Late Asia Wednesday
2010/10/07 15:34=DJ MONEY TALKS: The Gold Bubble?
2010/10/07 15:33DJ Japan Eyes Joining Asia-Pacific Free Trade Talks - Minister
TOKYO --Japan is considering joining negotiations for a free trade partnership among Asia-Pacific nations in a bid to bolster its ailing economy, the foreign minister said Thursday. Foreign Minister Seiji Maehara said the Trans-Pacific Partnership or TPP concept, including Japan's key ally the U.S., might help boost Japan's efforts to conclude free trade deals to increase exports. 'The Trans-Pacific Partnership Agreement stands as our promising framework for economic integration in the Asia-Pacific region,' Maehara said in an address to a Japan-U.S. business conference in Tokyo. 'I'm fully committed to making the greatest possible efforts to promote Japan's and policies, including looking into Japan's participation in TPP negotiations,' he said. Washington has said it would enter TPP talks, viewing such a deal as a means to advance U.S. economic interests with fast-growing Asia. Australia, Brunei, Chile, New Zealand, Malaysia, Peru, Singapore, and Vietnam have also said they would join the talks. Japan has lagged behind other Asian countries --such as South Korea, which Wednesday sealed a pact with the EU--in sealing free trade deals. Former Japanese Prime Minister Yukio Hatoyama proposed building an East Asian community similar to the EU through economic integration, but the idea evaporated after his resignation in May. Maehara, who has argued for a stronger Japan-U.S. security alliance, welcomed further American involvement in Asia through forums such as the Asia-Pacific Economic Cooperation, or APEC, which Japan hosts this year. 'I believe the active engagement of the United States in this region is an indispensable element for the peace and prosperity in the region,' he said. 'I'm greatly encouraged by these signs of increased U.S. commitment to the region,' Maehara said.
2010/10/07 15:33DJ Tokyo Shares:Nikkei Falls As Chip Shrs Weaken, Retailers Gain
2010/10/07 15:27=DJ DATA SNAP: French Trade Deficit Widens Slightly To EUR4.93B
2010/10/07 15:19*DJ Euro Trades Above GBP0.88, First Time Since Early May - EBS
2010/10/07 15:12*DJ Japan MOF Sakurai: Not Necessary To Create Sovereign Wealth Fund Soon
2010/10/07 15:06*DJ FTSE 100 Flat After The Open
2010/10/07 15:04DJ Tokyo Shares:Nikkei Falls As Chip Shrs Weaken, Retailers Gain
2010/10/07 15:03*DJ UK Halifax House Prices Were Forecast -0.3% MM, +3.9% YY
2010/10/07 15:02*DJ UK Halifax Sep House Prices -3.6% On Mo, +2.6% On Yr
2010/10/07 15:02DJ Japan DPJ Ozawa: Will Not Leave DPJ Or Resign From Parliament
TOKYO -Democratic Party of Japan kingpin Ichiro Ozawa said Thursday he wouldn't leave the ruling party or resign as a member of the Japanese parliament after a citizens' judicial panel ruled that he should face charges over a political funding scandal.Earlier Thursday, Kyodo News reported that Ozawa will file a lawsuit against the decision by the court-appointed panel.On Monday, the panel ordered Ozawa's indictment for alleged violations of the political funds law related to false entries in the financial statements of his fund-raising organization.
2010/10/07 15:00DJ Forex Options: Dollar/Yen Options Rise As Upside Hedges Sought
TOKYO -Dollar/yen options rose in Tokyo Thursday as the underlying exchange rate marked a 15-year low of Y82.75 overnight, prompting market participants to hedge against the near term risk of the rate sharply rising.Such buying indicates expectations for the Japanese authorities to intervene in the currency market again soon, which could weaken the yen against the U.S. dollar.The greenback dropped overnight below Y82.87--its level just before Japan intervened to help stem the yen's appreciation on Sept. 15.An options dealer at a major brokerage in Tokyo said multiple players bought one-week dollar-call/yen-put contracts with a strike price of Y84.50 and volatilities at 14.25%, 14.00%, 13.85% and 13.75%. The dealer said the deals amounted to $120 million altogether.These contracts benefit the holders if the exchange rate stays above the strike price when the contract expires, implying the buyers expect the rate to rise.However the dollar's drop to a new 15-year low also increased demand for hedges against further decline--particularly because of the growing view among traders that it will be difficult for Japan to intervene again before a G-7 gathering of industrialized nations on Friday, and annual meetings for the International Monetary Fund and The World Bank Group this weekend.Such difficulty stems from criticism having already been directed at Japan's unilateral yen-selling intervention from U.S. House Ways and Means Committee Chairman Sander Levin (D., Mich.) and Luxembourg Prime Minister Jean-Claude Juncker, who is also head of the Eurogroup finance ministers.Benchmark volatilities implied by one-month at-the-money options rose to 11.25%/11.95% in Tokyo from 11.10%/11.80% Wednesday in New York.The dealer at the Tokyo brokerage said volatilities may rise to 11.85% if the U.S. unit continues to fall Y82.50.
2010/10/07 14:46=DJ FX ASIA: Aussie Dollar Ever Closer To Its Dance With Parity
2010/10/07 14:46*DJ U.S. Dollar Touches S$1.3057 Vs S$1.3094 Late Asia Wednesday
2010/10/07 14:44*DJ Dollar Falls Below Y82.75 On EBS; Lowest Since May 31, 1995
2010/10/07 14:42*DJ Euro Hits $1.3950 On EBS; Highest Since Feb 3
2010/10/07 14:42*DJ Spot Gold Hits New Record High $1,356/Oz Pre-London Open
2010/10/07 14:27=DJ FOCUS: Funds See AIA IPO As Unique, Fairly Priced; But US Govt Exit Weighs
2010/10/07 14:27=DJ WORLD FOREX: Dollar Falls Vs Yen, Nears Fresh 15-Year Low -3-
2010/10/07 14:24=DJ WORLD FOREX: Dollar Falls Vs Yen, Nears Fresh 15-Year Low -2-
2010/10/07 14:16*DJ BOK May Have Bought Around $500M To Curb Won's Gains -Trader
2010/10/07 14:15DJ Japan MOF Igarashi: May Do 'Smoothing' Intervention To Curb Volatility - Bloomberg
Japan may intervene in the currency market again to curb volatile yen movements but it won't seek to drive down the yen's value, a senior Finance Ministry official said Thursday, according to Bloomberg News. 'It's not our intention to engage in a currency-devaluation race for the sake of the national interest,' Senior Vice Finance Minister Fumihiko Igarashi was quoted as saying in an interview. 'We could conduct smoothing operations when movements are extremely volatile--that would be permissible.' Japan sold a massive Y2 trillion last month in its first intervention since 2004 after the yen hit a 15-year high against the dollar. The move weakened the Japanese currency, but it has now strengthened to slightly beyond last month's intervention point. Ahead of meetings this weekend of finance ministers from the Group of Seven industrial powers and the International Monetary Fund, some are expressing concern about a possible 'currency war.' Many Asian central banks in particular have been intervening to slow the rise of their own currencies against the dollar to protect their export-reliant economic recoveries.
2010/10/07 14:05*DJ BOK Likely Bought Dollars At Levels Below KRW1,115 -Traders
2010/10/07 14:04*DJ BOK Likely Intervened Close To Session End To Sell Won -Traders
2010/10/07 14:02*DJ Nikkei Stock Average Closes Down 0.1% At 9684.81
2010/10/07 13:57=DJ WORLD FOREX: Dollar Falls Vs Yen, Nears Fresh 15-Year Low
2010/10/07 13:44*DJ Japan PM Kan: Hope BOJ Will Keep Supporting Econ On Monetary Side
2010/10/07 13:43*DJ Japan PM Kan: Can't Tolerate Excessive FX Moves
2010/10/07 13:42*DJ Japan PM Kan: To Keep Communicating With G7 Nations On FX
2010/10/07 13:42*DJ Japan PM Kan: To Take Decisive Steps On FX If Necessary
2010/10/07 13:07DJ Bank Of America Merrill Lynch Appoints Zhang Xiuping As Asia M&A Co-Head - Memo
HONG KONG -Bank of America Merrill Lynch has appointed Zhang Xiuping as its co-head of Asia mergers and acquisitions, according to a memo seen by on Thursday. Zhang joins from Deutsche Bank AG , where she was head of China mergers and acquisitions. Zhang will work with Michael Cho, co-head of Asia mergers and acquisitions. ***********
2010/10/07 13:01*DJ Japan Aug Coincident Indicators +0.5 Pts On Month
2010/10/07 13:00*DJ Japan Aug Leading Indicators -0.9 Pts On Month
2010/10/07 13:00*DJ Japan Aug Leading Indicators -0.9 Pts On Month
2010/10/07 13:00*DJ Japan Aug Leading Indicators -0.9 Pts On Month
2010/10/07 11:47*DJ Gold Hits Record $1,355.95/oz, Then Eases; Last Bid $1,353.80
2010/10/07 11:33=DJ FOREX VIEW: Central Banks Take Center Stage; ECB Takes A Bow
2010/10/07 11:25DJ Chinese PM Visits Italy Amid Currency Storm
ROME --Chinese Premier Wen Jiabao was set to seal an economic partnership with Italy on Thursday after fending off EU pressure to increase the value of the yuan to help ease massive trade imbalances.Wen will meet with Prime Minister Silvio Berlusconi and President Giorgio Napolitano, as well Chinese community leaders during his one-day visit to Rome--the third leg of his week-long trip across Europe, officials said."A dozen agreements for cooperation in the economic, justice, cultural, scientific, environmental and financial sectors will be signed," the embassy said in a statement on the eve of the meeting in Rome."The two sides will also announce a three-year action plan to reinforce economic collaboration... to define the priority sectors and projects for pragmatic cooperation," it added.On Tuesday, Wen told a Europe-China business forum: "I say to Europe's leaders--don't join the chorus pressing to revalue the yuan."He warned such a move would bankrupt many Chinese companies and create social unrest, ultimately increasing global economic instability.Italy's La Repubblica daily reported earlier that Wen would speak to Berlusconi "about high-speed rail, airports, the ageing ports of southern Italy, highways and industries to be relaunched."For China, Italy is one of the most convenient trade platforms on the Mediterranean and the billions from China's sovereign wealth fund are ready to be invested in infrastructure," La Repubblica said.Chinese companies have already invested in the ports of Naples and Taranto--both seen as important bridgeheads for Chinese exports in Europe.Italian business daily Il Sole 24 Ore also reported that Chinese technology giant Huawei will sign a deal with operator Vodafone Italia during the visit.The partnership for broadband Internet would include setting up a research centre in Milan worth 10 million euros (14 million dollars).China and Italy are aiming to double their trade turnover to $80 billion by 2015 from around $40 billion expected this year, Il Messaggero daily reported Wednesday.There will also be talks between Italian and Chinese business chiefs and Wen will meet with members of Italy's growing Chinese community, which numbers more than 200,000 people, the embassy said.Wen is expected to leave for Turkey later on Thursday.
2010/10/07 11:01DJ Japan PM Kan: Can't Tolerate Excessive Forex Moves
TOKYO -Japanese Prime Minister Naoto Kan said Thursday that the government won't tolerate excessive moves in the foreign exchange market, adding that decisive steps to deal with the strong yen will be taken when necessary. Kan made the remarks in parliamentary testimony at a time when the dollar has fallen back below the key Y83 mark even after the Finance Ministry intervened to prop up the yen last month.
2010/10/07 10:57DJ Ex-MOF Shinohara: Little Point In Japan Trying To Guide Yen Lower - Reuters
Japan faces a losing battle in trying to weaken the yen, but intervention to curb currency volatility can't be ruled out, said former top Finance Ministry official Naoyuki Shinohara, according to Reuters. 'I see little point in Japan trying to guide the yen lower,' the former vice minister for international affairs said, the agency reported from Washington Wednesday. The yen will remain around its current high levels as U.S. and European monetary conditions are expected to remain loose, he was quoted as saying. 'This is not something that Japan can control. If Japan tries to adjust this, it will distort markets.' Japan sold a massive Y2 trillion last month in its first currency interventions since 2004, temporarily weakening the yen, which is back around 15-year highs. Shinohara, who was Japan's point man for currency policy from 2007 to July 2010, is deputy managing editor of the International Monetary Fund. He was speaking on the sidelines of meetings of the Group of Seven industrial powers and the IMF. He said the G-7 may discuss intervention, Reuters said.
2010/10/07 10:56DJ UK Treasury Could Delay Spending Cuts -FT
2010/10/07 10:21*DJ Japan PM Kan: To Take Decisive Steps When Necessary In Dealing With Strong Yen
2010/10/07 10:14*DJ Japan PM Kan: Can't Ignore Excessive Forex Moves
2010/10/07 09:27*DJ Dollar Now At IDR8,920 Unchanged From Late Wednesday
2010/10/07 09:23DJ UK Treasury Could Delay Spending Cuts -FT
The U.K. Treasury wants to spread out planned spending cuts, laid out in June's emergency budget, over the next few years because of difficulties in implementing them, the Financial Times reported Wednesday, citing senior Whitehall officials. The original plan of quickly cutting spending, which will see contracts broken and redundancy costs among other financial penalties, could undermine the economy's fragile recovery and the Treasury is deciding whether or not to 'reprofile' the cuts. An aide to Chancellor George Osborne said Wednesday that the spreadsheets underpinning the spending review didn't factor in any reprofiling but he added that the government would need to consider contracts and redundancy costs. The Treasury also said there was no change in the government's economic strategy of eliminating the current structural deficit within a parliament. Full story at http://www.ft.com/cms/s/0/6d914844-d18a-11df-96d10144feabdc0.html
2010/10/07 09:20*DJ Silver Hits 30-Year High At $23.26/Oz; Eases To $23.20
2010/10/07 09:17DJ Rio May Hasten Pilbara JV Decision After Leaked Discussion -Reports
SYDNEY -Rio Tinto Plc may take a decision soon on the future of its Pilbara iron ore joint venture with BHP Billiton Ltd. after the leaking of details of a teleconference in which directors discussed how to handle any collapse of the deal, according to local media Thursday.The Australian newspaper, without citing sources, said that a report in Wednesday's Sydney Morning Herald 'has raised speculation' that Rio may bring forward a board meeting scheduled for Oct. 17 'to make a final decision on the joint venture'.In a separate report, the Australian Financial Review said that an announcement on the future of the deal was likely before Dec. 31, when the deal is due to lapse, again without citing sources.'It is understood Rio and BHP have held discussions about reaching a mutual agreement to terminate the deal,' the paper said. Newspaper website: http://www.theaustralian.news.com.au Newspaper website: http://www.afr.com
2010/10/07 08:51DJ Subtropical Storm Otto Forms In Atlantic - NHC
MIAMI --A subtropical storm named Otto formed Wednesday in the Atlantic and could strengthen into a hurricane by Thursday or Friday, the U.S. National Hurricane Center said.A subtropical storm is one that forms with colder temperatures aloft and on the sea surface than normally found in the tropics.But Otto, which doesn't have an organized center, "could transition into a tropical storm by Thursday and then become a hurricane by Thursday night or Friday morning," the Miami-based hurricane center said.The storm was 215 miles (345 kilometers) northeast of the Turks and Caicos islands at 2100 GMT and was heading north with maximum winds of 60 miles per hour.It was expected to remain well east of the Bahamas as it heads toward the north Atlantic."Additional heavy rainfall is possible in the northern Leeward Islands, the Virgin Islands, and Puerto Rico during the next day or so," the center said.
2010/10/07 08:37*DJ Nikkei Stock Average Briefly Enters Positive Territory
2010/10/07 08:02*DJ Nikkei Stock Average Opens Down 0.3% At 9661.09
2010/10/07 08:02*DJ Lead December JGB Futures Open Down At 144.11 Vs 144.15 Thursday
2010/10/07 07:48*DJ Lead Nikkei Futures Open Down 25 Points At 9660 On SGX
2010/10/07 07:03*DJ US Dollar Touches S$1.3064 Overnight, Currently At S$1.3082
2010/10/07 06:54DJ US Official: Chinese Must Level Playing Field For US Products
WASHINGTON -China needs to improve access to its economy for U.S. firms or it could face headwinds as Beijing seeks to invest abroad, a top State Department official said Wednesday."If foreign companies do not have a level playing field in other countries, many of their companies are going to encounter resistance to their enjoying such opportunities in the United States," said Robert Hormats, under secretary of economic affairs at State.Broadening cross-border investment opportunities is beneficial to both the U.S. and emerging market economies, Hormats said during a speech in Washington, but needs to be done fairly. The U.S., Japan and other leading economies need to encourage China to avoid "nationalistic" policies, he said, ensuring Beijing invests responsibly.Hormats added that achieving the goal of "fair and transparent access" to foreign markets depends in large part on foreign companies urging their home governments to embrace more open investment policies."As the companies of emerging economies benefit from a rules based system and a level playing field abroad we expect them to press their governments at home to support similar policies in their countries," Hormats said.
2010/10/07 06:40=DJ Volcker Says US, Europe Face 'Prolonged' Period of Unemployment
2010/10/07 06:30DJ Rio Tinto CEO: No Decision Made On BHP-Rio Tinto Iron Ore JV
NEW YORK -No final decision has been made on a proposed $116 billion iron ore production joint venture between Rio Tinto PLC (RTP, RIO.LN) and BHP Billiton Ltd (BHP, BHP.AU) that has faced stiff regulatory hurdles, Rio Tinto's chief executive said Wednesday. The Wall Street Journal reported at the end of September that BHP and Rio Tinto were evaluating revisions to or a postponement to their joint-venture proposal. CEO Tom Albanese told journalists here that 'no final decision has been taken,' adding that 'the proposal is facing regulatory obstacles from anti-trust authorities who are still reviewing the proposal.' Anti-trust regulatory agencies in Japan, Korea, the European Union and Australia have indicated there may be obstacles to getting regulatory approval for the joint venture, the Anglo Australian mining company said Tuesday. Rio Tinto and BHP Billiton announced in June 2009 a proposal to combine their iron ore operations in the Pilbara region of Western Australia. Each company would be entitled to half of the joint venture's output and would market the iron ore independently of each other. The proposal is due to expire at the end of 2010. It was originally forecast to close by mid-2010. The joint venture is forecast to generate synergies of $10 billion by allowing both companies to streamline infrastructure investment in order to produce more iron ore at a faster pace.
2010/10/07 06:24DJ Economist Roubini Sees 40% Chance Of Double-Dip Recession
There is a 40% probability of a double-dip recession, but you don't need one for the global economy to feel like it is in a deep, continuing recession, said Nouriel Roubini, the famous pessimist and economics professor at New York University on Wednesday.He said external shocks, such as another Greek credit crisis, perhaps with problems in Spain, Portugal or Ireland, could trigger the shock needed for a double-dip recession.'You don't need another Lehman story, you don't need a major loss,' said Roubini at an American Enterprise Institute event. 'You can have death by a thousand cuts.'-Ronald D. Orol; 415-439-6400; AskNewswires@dowjones.com
2010/10/07 06:18DJ CREDIT MARKETS: Refinancings, Mergers Dominate Junk Issuance
2010/10/07 06:07=DJ WORLD FOREX: Dollar Falls More On Fed Concern; Euro Above $1.39
2010/10/07 05:46DJ US Stocks Close Slightly Higher, Await Labor Market Signals-2-
2010/10/07 05:20DJ OIL FUTURES: Crude Adds To Rally As Fuel Stocks Drop
NEW YORK -Crude-oil futures settled at a fresh five-month high Wednesday after a goverment report showed a drop in U.S. fuel supplies. Wednesday's move higher added tightening supplies as an incentive to buy into a week-long rally mainly driven by the weakening dollar. The greenback has a head start in the global race by central banks to devalue currencies to support their countries' domestic economies, and in response, investors are seeking hard assets such as commodities. Light, sweet crude oil for November delivery settled 41 cents, or 0.5%, higher at $83.23 a barrel on the New York Mercantile Exchange, after rising to $84.09, the highest front-month price since May. Brent crude oil on the ICE futures exchange traded 22 cents higher at $85.06 a barrel. The U.S. Department of Energy on Wednesday said U.S. crude-oil stockpiles rose by 3.1 million barrels in the week ended Oct. 1, a much larger increase than analysts had expected. But gasoline inventories fell by 2.6 million barrels and stocks of distillates, which include heating oil and diesel, fell by 1.1 million barrels. Both drops were larger than anticipated, though the increase in oil stockpiles was enough to drive up combined U.S. oil and fuel inventories, still near a 27-year high. 'It's an argument of convenience. We're in a bullish mood,' said Tim Evans, an analyst with Citi Futures Perspectives, on the inventory data. 'You see the top-line numbers and you start pointing and clicking to get your orders into the market, because if you snooze, you lose.' Front-month November reformulated gasoline blendstock, or RBOB, led the oil complex, settling 3.04 cents, or 1.4%, higher at $2.1559 a gallon. November heating oil recently traded 0.52 cents higher at $2.3078 a gallon, less than four cents shy of a two-year high. Crude-oil stockpiles were expected to rise by 300,000 barrels, according to a survey of analysts by . Gasoline stocks were expected to fall by 300,000 barrels and distillate stocks to fall by 700,000 barrels. With equities markets nearly flat and the dollar weakening slightly, oil traders had few signals from the broader markets Wednesday on whether the recent oil rally will continue. Analysts said inventories as well as the fate of the dollar could support a continued rise in prices, breaking through barriers just above $80 a barrel that have confined crude for months. 'We really haven't been able to fight off the weakness in the dollar. It's a currency play,' said Peter Donovan, an oil trader and analyst at Vantage Trading in New York. 'We see the demand picture as relatively soft and inventories as relatively high, but in the face of the dollar weakness, it's leading the crude market higher.' Meanwhile, the rolling strike at the French port of Fos-Lavera, which will enter its 11th day Thursday, has caused serious crude shortages at the refineries it supplies, a spokesman for refiners body Union francaise des industries petrolieres, or Ufip, said Wednesday, although he wouldn't detail stocks or production levels. Union representatives for all companies in the oil and petrochemicals industry in the Etang de Berre area, close to the southern city of Marseilles, met Wednesday to discuss common protest action. The Houston Ship Channel fully re-opened early Wednesday, allowing crude supplies to flow for the first time since Sunday to four oil refineries that account for 4.5% of the nation's refining capacity.
2010/10/07 05:11DJ Treasurys, Bunds, Gilts Rally; 2-, 5-Yr Tsy Ylds Hit Record Low
YORK -U.S. Treasurys and government bonds in Germany and the U.K. posted a strong rally Wednesday, fueled by rising speculation of more monetary stimulus from leading central banks to bolster economic growth.The buying binge pushed down bond yields broadly, with the two-year and five-year Treasury yields hitting record lows. The benchmark 10-year Treasury yield touched its lowest level since January 2009.An unexpected decline in U.S. private-sector employment raised anxiety about the key nonfarm payroll report due Friday. The data spurred many investors to raise bets that the Federal Reserve will lift the size of Treasury bond purchases, known as quantitative easing, when policy makers meet to set monetary policy in early November.Such bets have gained traction after the Bank of Japan on Tuesday provided additional monetary stimulus while Federal Reserve Bank of Chicago President Charles Evans, who will vote on monetary policy in 2011, joined the ranks of Fed Chairman Ben Bernanke and New York Fed President William Dudley to call for more supportive measures for the economy."The global [quantitative-easing] fire is quickly becoming a wildfire," said Tom di Galoma, head of U.S. rates trading at Guggenheim Partners in New York.As of 3:50 p.m. EDT, the benchmark 10-year note was 22/32 higher in price and its yield fell by eight basis points to 2.392%. The five-year note was 6/32 higher to yield 1.158%, and the 30-year bond was 1 16/32 higher to yield 3.662%. Bond prices move inversely to yields.The 10-year and 30-year Treasurys were the best performers as many investors sought extra returns amid a broad plunge in yields. The yield premium of the 10-year note over the two-year note dropped to the lowest level since late August.In Germany, the 10-year government bond's yield fell six basis points to 2.224%. The yield on the 10-year government debt in the U.K. dropped eight basis points to 2.889%."It is the same trade every day. People are buying bonds on the belief that major central banks are going to implement further quantitative-easing measures," said James Combias, head of U.S. Treasury trading at Mizuho Securities USA Inc. in New York.At the peak of the buying, the 10-year Treasury note's yield, the benchmark for consumer and corporate borrowings, touched 2.357%. The yield broke below the recent trough of 2.418% set in August, a move Traders said will signal further declines in the yield in coming weeks.The two-year note's yield touched a record low of 0.379% and the five-year note hit a record low of 1.122%.In Japan, the 10-year government security's yield fell to the lowest level since 2003.The monthly report from Automatic Data Processing showed the private sector lost 39,000 jobs in September, in contrast with a forecast by economists of a 20,000-job gain."With all eyes on Friday's jobs report, this morning's decline in the ADP survey supported the belief that the upcoming employment data will spur the Fed into [quantitative easing] action." said Kevin Flanagan, chief fixed-income strategist at Morgan Stanley Smith Barney in Purchase, N.Y.Still, bond investors are split on the scope of further gains in Treasury prices on the Fed's possible expansion of government-debt purchases, especially after the benchmark 10-year note's yield has tumbled more than 150 basis points from this year's peak of 4.017% in early April.Some investors still bet that the Fed's measures will help the 10-year note's yield to hit 2% or even lower in the coming year. The yield touched a record low of 2.034% in mid-December 2008.Yet Goldman Sachs Group Inc., one of the biggest Treasury-bond bulls on Wall Street, said Monday that the bond rally has seen its peak and stocks provide better value.Flanagan said he expects the 10-year note's yield may fall to 2.25% and then start to rise."We feel this level will be unquestionable and the rate will rise from there over the next 12 months," he said. US Swap Spreads Mixed The two-year spread, which measures the difference between the two-year swap rate and the two-year Treasury yield and is a main gauge of credit risks, was 0.75 basis point tighter at 17.25 basis points. The 10-year swap spread was 0.75 basis point wider at 10.25 basis points.
2010/10/07 04:42DJ US Stocks Close Slightly Higher, Await Labor Market Signals
2010/10/07 04:34*DJ Rio Tinto CEO: No Decision Made On BHP-RIO Iron Ore JV
2010/10/07 04:23DJ US AG Says DOJ Looking Into Foreclosure Allegations At Large Banks
WASHINGTON -Attorney General Eric Holder said Wednesday the Department of Justice is looking into allegations that major U.S. lenders may have improperly processed mortgage foreclosures.Speaking at a news conference Wednesday, Holder's comments come just a day after House Speaker Nancy Pelosi (D., Calif.) and other House California Democrats urged top officials in the Obama administration to investigate the matter."We are aware of the charges that have surfaced in the newspapers in the last couple of days, and we are looking at them," Holder said.Over the last several days, reports have emerged that major lenders including Ally Financial Inc. [formerly GMAC], Bank of America Corp. and J.P. Morgan Chase & Co. are temporarily suspending processing of mortgage foreclosures as they review whether problems exist within their systems.The California lawmakers urged Holder as well as the Federal Reserve and Treasury to investigate the matter.
2010/10/07 04:11*DJ Nasdaq Closes Down 19 (0.8%) At 2380; Telecom, Tech Lag
2010/10/07 04:11*DJ DJIA Closes Up 23 (0.2%) At 10968 As GE, Alcoa Gain
2010/10/07 03:41=DJ Goldman Points To 'Broad Dollar Depreciation' In Forecast Revisions
2010/10/07 03:38DJ World Bank Economist Warns Of Trade Wars If No Currency Cooperation
WASHINGTON -Trade wars could break out if global financial leaders don't find a way to break the impasse over currencies, the World Bank's chief economist for Latin America and the Caribbean said Wednesday.Augusto de la Torre said rising frictions over exchange rates are being driven in large part by yawning gaps in interest rates between advanced and emerging economies, which is resulting in heavy capital flows into the higher-yielding emerging markets.'If we don't resolve this situation, one result will be a trade war,' he said.One way to break the impasse would be for China to agree to allow the yuan to appreciate more rapidly against the dollar, which would relieve pressure on currencies of other emerging economies, said de la Torre during a briefing.He expects the issue to be a major topic of discussion when finance ministers and central bankers convene for this week's annual meeting of the World Bank and International Monetary funds.
2010/10/07 03:19DJ PRECIOUS METALS: Currency Concerns Push Gold To Fresh Record
2010/10/07 02:37*DJ OIL FUTURES: Crude Adds To Rally As Fuel Stocks Drop
2010/10/07 02:34*DJ OIL FUTURES: Nymex Crude Settles Up 41c At $83.23/Bbl
2010/10/07 02:09*DJ Comex December Gold Settles $7.40 Higher At $1,347.7/Oz
2010/10/07 01:47*DJ World Bank Economist Warns Of Trade Wars If No Currency Cooperation
2010/10/07 01:44*DJ Weak Dollar, Anticipated Fed Moves Trigger Latest Gold Spurt
2010/10/07 01:43*DJ Gold Higher, Concerns On Monetary Response To Grim Economic Data
2010/10/07 01:39*DJ Gold Futures End Trading Above $1,340 An Ounce
2010/10/07 01:38*DJ Gold Futures Poised To Settle At Fresh Record High
2010/10/07 01:29*DJ US Official: Chinese Must Level Playing Field For US Products
2010/10/07 00:11*DJ Dollar Hits Fresh All-Time Low Against Swiss Franc
2010/10/07 00:11*DJ Euro Extends Gains, Hits Intraday High Against Dollar
