Business Recorder! Markets syndication. http://www.brecorder.com Thu, 23 May 2013 01:53:31 +0100 FeedCreator 1.7.3 http://www.brecorder.com/images/M_images/livemarks.png http://www.brecorder.com Business Recorder! Markets syndication. http://www.brecorder.com/markets/equity/americas/120665-wall-st-falters-in-volatile-session-on-fed-worries.html NEW YORK: US stocks fell on Wednesday with the S P 500 posting its biggest decline in three weeks, after minutes from the latest US Federal Reserve meeting showed some officials were open to tapering large-scale asset purchases as early as at the June meeting.Trading was volatile - the Dow and the S P indexes both rose more than 1 percent during the morning, but fell more than 1 percent in the afternoon.The minutes followed comments from Chairman Ben Bernanke, who said the Fed could decide to scale back the pace of bond purchases at one of the "next few meetings" if the economic recovery looked set to maintain forward momentum.The comments were a blow to a market that had accelerated after Bernanke said the central bank needed to see further signs of traction in the economy before it tapered stimulus."This is a very sensitive market and particularly sensitive to any notion that tapering will come too soon," said Quincy Krosby, market strategist at Prudential Financial in New York."No one wants to be selling if the data reaches the point when the Fed begins to specifically talk about tapering. The market doesn't wait for the Fed to move. It will... Wed, 22 May 2013 19:50:36 +0100 http://www.brecorder.com/markets/equity/americas/120664-stocks-oil-fall-after-bernanke-dollar-gains-.html NEW YORK: Stocks, bonds and currencies took a wild ride on Wednesday, as remarks by Federal Reserve Chairman Ben Bernanke failed to provide the clear picture investors had hoped for of the likely continuation of the US central bank's bond-buying program, with sentiment ultimately driven by expectations of tapering.Remarks by Bernanke, in testimony to Congress, that the bond purchases would remain in place for now initially drove sharp gains on Wall Street and sent the dollar lower. But stocks slid and the dollar rose to a 4-1/2-year high against the yen after Bernanke said that if economic improvement continued, "We could in the next few meetings take a step down in our pace of purchases."Wall Street stocks posted their biggest daily decline since May 1, after earlier rising more than 1 percent and sending the Dow and S P to record highs. Losses accelerated after minutes from the Fed's latest meeting showed that some officials were open to tapering large-scale asset purchases as early as the next policy meeting, to be held June 18-19."The market was disappointed with the fact that they did not get complete clarity and a green light that the current QE measures are going to be... Wed, 22 May 2013 19:49:56 +0100 http://www.brecorder.com/markets/fxmm/americas/120663-us-dollar-climbs-to-multi-year-highs-after-bernanke.html NEW YORK: The dollar rose to a 4-1/2-year high against the yen and a near three-year peak against a currency basket on Wednesday after Federal Reserve Chairman Ben Bernanke stoked speculation the US central bank could slow its asset buying in coming months.Bernanke, in testimony to Congress, said the Fed's massive bond-buying program would remain in place for now. But he added if economic improvement continued, the Fed could "in the next few meetings take a step down" in its purchases and warned that holding interest rates too low for too long has its risks.The dollar initially sold off after Bernanke said monetary stimulus is helping the US economy recover and it was too soon to remove existing measures. It then rebounded and surged to the day's highs as traders focused on the possibility of the Fed reducing its bond buying later this year."The takeaway from his speech is clear which is that the Fed is serious about winding down QE and all of the speculation surrounding this possibility is validated," said Kathy Lien, managing director of FX Strategy for BK Asset Management in New York."The US dollar has been on a tear since the beginning of the month and... Wed, 22 May 2013 19:48:54 +0100 http://www.brecorder.com/markets/commodities/america/120662-ice-cotton-down-for-3rd-straight-session-under-spread-pressure.html NEW YORK: Cotton futures edged down on Wednesday to a three-week low, under pressure from spread-related dealings and forecasts of rains in Texas that could ease supply concerns in the top producing state in the United States, dealers said.The most-active July cotton contract on ICE Futures US fell 0.44 cent, or 0.5 percent, to settle at 83.42 cents per pound, down for a third straight session.Prices touched 83.32 cents a lb, the front-month contract's lowest price since May 2.The December contract on ICE, which represents the new crop, closed up 0.24 cent, or 0.3 percent, at 84.39 cents a lb.The December/July spread widened to 0.97 cent, up from 0.29 cent the previous session. December moved into a premium against July on Tuesday for the first time in almost two weeks."We're seeing some increased spread trading that's putting some carry back into the market," said Peter Egli, director of risk management for Plexus Cotton Ltd, a British-based medium-sized merchant.Open interest has begun to move into the December contract, which represents the new crop, and out of the front-month position.With non-commercial dealers holding a large net long position in cotton futures and options, the move into the forward contract puts pressure on... Wed, 22 May 2013 19:48:01 +0100 http://www.brecorder.com/markets/fxmm/australia/120661-a-nz-skid-after-bernanke-testimony-china-data-eyed.html SYDNEY/WELLINGTON: The Australian dollar hit an 11-month low against the US dollar and a 1-1/2-year trough versus the euro on Thursday after US Federal Reserve Chairman Ben Bernanke signalled he may trim asset purchases if the US economy continues to recover.Chinese PMI due at 0145 GMT. A weak reading could spur more selling in the Antipodeans, as China is a key export market for both Australia and New Zealand.The Aussie fell as low as $0.9662, its weakest since June last year and reversing a climb to $0.9828. It skidded 1.1 percent on Wednesday to last change hands at $0.9688 at 2201 GMT.A slowing in the Fed's massive monetary stimulus programme could diminish demand for higher-yielding assets, including the Antipodean currencies.The New Zealand dollar plumbed an 8-1/2-month trough of $0.8057, showing a sharp drop of 1.3 percent, weighed by a broad US dollar rally even as the Fed indicated that the bar to scaling down asset purchases remains high. Kiwi last traded at $0.8058.The Aussie was 6.5 percent lower so far this month with a test of $0.9581, its 2012 low, in sight.The Aussie and the kiwi also suffered against other currencies including the euro, which rallied to around A$1.3320 ,... Wed, 22 May 2013 19:42:54 +0100 http://www.brecorder.com/markets/energy/america/120660-oil-drops-on-gasoline-glut-falls-more-on-fed-minutes.html NEW YORK: Oil prices fell on Wednesday as a rise in US gasoline inventories prompted selling, then crude extended losses in late trading after minutes from a Federal Reserve policy meeting sent US stock markets down.US equities fell in choppy trading, with the Dow briefly down more than 1 percent, after the Fed released minutes of its April 30-May 1 meeting. The minutes indicated a debate over how soon to start scaling back the central bank's bond-buying program of economic stimulus.Brent crude futures fell $1.31 to settle at $102.60, after shedding nearly a dollar in the previous session. Brent prices fell further in post-settlement trading, down $1.52 at 4:54 p.m. EDT (2054 GMT).US crude settled down $1.90 at $94.28 a barrel, its biggest one-day loss since May 1. It extended losses in post-settlement trading, sliding as low as $94.01."You had a couple of Fed governors talking about ending quantitative easing as early as June, and because of that, people are thinking 'Oh, the Fed is done,'" said Mark Waggoner, president at Excel Futures in Bend, Oregon."If there's uncertainty, people want to take profits off of these highs. Then if the economy slows, demand slows for crude oil."Earlier, the US government's... Wed, 22 May 2013 19:42:00 +0100 http://www.brecorder.com/markets/equity/americas/120659-tsx-edges-up-as-fed-talk-buoys-golds-drags-banks.html TORONTO: Canada's main stock index climbed on Wednesday, led by gold miners, after a day of choppy trading as optimism that the US Federal Reserve will keep its easy money policy in place for now was tempered by fears of a stimulus rollback.The resource-heavy market, which advanced for the fourth straight session, reached its highest in more than two months due to early gains.Fed Chairman Ben Bernanke said the central bank's monetary stimulus is helping the US economy recover, but added the bank needs to see further signs of traction before taking its foot off the gas.Central banks are hesitant to turn off the tap because of the risks involved and the unprecedented scale of government spending, said Michael Sprung, president of Sprung Investment Management."Government officials are dancing on the head of a pin themselves," he said. "They don't want to do anything to destabilize the economy.""We've never seen an environment where the market is held up by such massive spending by governments," he added. "That cannot be sustained forever."With Wednesday's gains, the benchmark Canadian index is up about 2.6 percent on the year.The Toronto Stock Exchange's S P/TSX composite index closed up 10.07 points, or 0.08 percent, at 12,752.50.... Wed, 22 May 2013 19:41:21 +0100 http://www.brecorder.com/markets/fxmm/americas/120658-c-dives-to-12-month-low-as-fed-tapering-seen-on-track.html TORONTO: The Canadian dollar lost more than a cent against its US counterpart on Wednesday, hurt by a double whammy of soft domestic retail sales data and US Federal Reserve hints that it might reduce its economic stimulus program soon.The plunge left the loonie, as Canada's currency is colloquially known, at its weakest level against the greenback since early June of last year.Traders saw little reason for the US dollar to reverse its advance after Fed Chairman Ben Bernanke said in congressional testimony that the central bank could scale back its $85 billion a month in bond-buying in the "next few meetings" if economic recovery continues.The release of minutes from the Fed's last meeting added to market sentiment that the US central bank's so-called quantitative easing program may be wound down sooner rather than later."Unless we see contradictory statements that say there will be absolutely no tapering of QE, I can't see the (US) dollar backing off," said Blake Jespersen, a managing director of foreign exchange sales at BMO Capital Markets.The loonie ended the session at C$1.0372 to the greenback, or 96.41 US cents, after earlier hitting an almost 12-month low of C$1.0388. It closed Tuesday's North American session at... Wed, 22 May 2013 19:40:42 +0100 http://www.brecorder.com/markets/energy/america/120650-oil-falls-on-inventory-report-fed-testimony.html NEW YORK: Oil prices sank Wednesday following a bearish US oil inventory report and amid speculation that the Federal Reserve quantitative easing program could be curtailed sooner rather than later.The price of US benchmark West Texas Intermediate for July delivery settled at $94.28 per barrel on the New York Mercantile Exchange, down $1.90 from Tuesday.The price of European benchmark Brent North Sea crude for delivery in July closed at $102.60 per barrel in London, a drop of $1.31.The market sell-off followed a US inventory report that showed crude oil inventories declined by 300,000 barrels last week, less than the 600,000 drop forecast by analysts in a Dow Jones Newswires survey.Even more dramatic, gasoline inventories rose by three million barrels whereas analysts had predicted a 100,000-barrel decline.The gasoline figures were "weighing on the complex," Again Capital trader John Kilduff said of petroleum investments."The report continues to underscore the bearishness of fundamentals," said Gene McGillian, broker and analyst at Tradition Energy, who cited lofty supplies of crude at the important Cushing, Oklahoma, hub.Meanwhile, analysts grappled with the message behind Federal Reserve Chairman Ben Bernanke's testimony Wednesday to Congress. Although Bernanke stressed that economic conditions do not warrant an end to the Fed's... Wed, 22 May 2013 18:42:10 +0100 http://www.brecorder.com/markets/equity/americas/120648-us-stocks-fall-as-market-eyes-possible-fed-retreat.html NEW YORK: US stocks Wednesday ended lower following a choppy day of trading as the market weighed exit signals on the Federal Reserve's exceptionally loose monetary policy.The Dow Jones Industrial Average dropped 80.41 (0.52 percent) to 15,307.17.The broad-based S P 500 gave up 13.81 (0.83 percent) at 1,655.35, while the tech-rich Nasdaq Composite Index sank 38.82 (1.11 percent) to 3,463.30.Stocks had rallied in the morning during the early part of Federal Reserve Chairman Ben Bernanke's highly anticipated testimony to Congress, but then retreated.Although Bernanke stressed that current economic conditions did not warrant an end to the Fed's aggressive stimulus measures, he also said the Fed could pull back in the next few meetings if they improved.The indices took a decisive downward lurch after the release of Federal Reserve meeting minutes showing some officials had discussed curtailing bond purchases as soon as June."They used the world 'taper' and no one wants to hear it," Mace Blicksilver, director of Marblehead Asset Management, said of the minutes.Technology equities were among the hardest hit. Among the biggest losers were Google (down 1.9 percent), Priceline (down 3.4 percent), Oracle (down 2.8 percent) and Cisco (down 2.8 percent). Retailer Target dropped 4.0 percent after reporting earnings... Wed, 22 May 2013 18:35:03 +0100