Dollar down after 10-week rally!

Euro gains capped

The dollar slipped in Asia Tuesday following a 10-week rally, while gains in the euro were capped by concerns about slackening European economic growth.

The greenback bought 108.74 yen in Singapore afternoon trade against 108.94 yen in New York late Monday. The euro rose to $1.2851 from $1.2850, while slipping to 139.72 yen from 139.78 yen.
Japanese financial markets are closed for a public holiday.

The dollar's upward momentum has taken a breather after last week hitting highs above 109 yen not seen since August 2008.

The gains came after the the Federal Reserve hinted that interest rates could rise further than expected when they are eventually hiked, probably in mid-2015.

Singapore's United Overseas Bank said the dollar was facing some selling in Asian trade after a "surprisingly weak set of US housing data" released on Monday.

The National Association of Realtors said existing-home sales in the US fell 1.8 percent in August, following four straight months of gains.

The euro saw an uptick in Asia after hitting 14-month lows a day earlier as traders digested a speech by European Central Bank chief Mario Draghi to the European Parliament.

Draghi dismissed market disappointment about demand from banks for a new lending programme launched last week, saying it was on track to pump more liquidity into the financial system but needed time to take full effect.

He noted that the eurozone recovery was sputtering but said the central bank would keep its accommodative monetary policy in place for some time.

The dollar rose against most Asia-Pacific currencies.

It climbed to Sg$1.2672 from Sg$1.2655 in Tokyo on Monday, to 11,978 Indonesian rupiah from 11,961 rupiah, to 60.89 Indian rupees from 60.77 rupees, and to 44.57 Philippine pesos from 44.42 pesos.

It rose to Tw$30.23 from Tw$30.19 while easing to 1,040.64 South Korean won from 1,040.75 won.

The Australian dollar stood at 89.08 US cents from 89.36 cents, while the Chinese yuan bought 17.71 yen from 17.70 yen.

Source: yahoo.com

Stocks Gain On Federal Reserve Update

The Federal Reserve Open Market Committee restated rates will remain low for a "considerable time," sending volatility into equity, debt and currency markets. Treasury buying was reduced by $5 billion per month, and the 2015 GDP estimate was cut to a range of 2.6 percent to 3 percent.

Major Averages

• The Dow Jones Industrial Average rose 24.9 points, or 0.15 percent, to 17, 157.
• The S&P 500 climbed 2.6 points, or 0.13 percent, to 2,002.
• The Nasdaq Composite gained 9.4 points, or 0.2 percent, to close at 4,562.

Top Stories

Homebuilder stocks gained Wednesday after the NAHB monthly survey showed homebuilders are more confident than they have been since 2005. The report stated that first time home buyers are still reluctant to enter the market.

The already strong steel sector continued to pick up ground after United States Steel (NYSE: X) and Nucor (NYSE: NUE) told Wall Street third quarter results will be better than initially expected. US Steel shares gained 10.1 percent while Nucor shares gained 3.9 percent.

To ease U.S. dependence on Russia, NASA granted Boeing (NYSE: BA) a $4.2 billion contract to transport astronauts to the International Space Station. Elon Musk’s SpaceEx has a similar $2.6 billion contract.

Stock Movers

Auxilium Pharmaceuticals (NASDAQ: AUXL) shares shot up 44.9 percent to $31.18 after the company received an unsolicited bid to be acquired for $28.10 per share from Endo International plc (NASDAQ: ENDP).

Lennar (NYSE: LEN) shares were also up, gaining 5.8 percent to $41.40 after the company reported better than expected fiscal third-quarter earnings.

Shares of Rackspace Hosting (NYSE: RAX) were down 17.7 percent to $32.39 after the company said it will remain independent despite "entertaining various proposals" from suitors.

General Mills (NYSE: GIS) shares tumbled 4.4 percent to $50.83 after the company reported weaker than expected fiscal first quarter results.

Adobe Systems (NASDAQ: ADBE) was down, falling 4.9 percent to $67.30 after the company issued a weak fiscal fourth quarter forecast. Adobe reported its third quarter earnings of $0.28 per share on revenue of $1.01 billion.

Commodities

Some profit taking kicked in Wednesday for crude oil futures. WTI was last down 0.77 percent to $94.15 after Tuesday’s 2 percent gain.

After a three day rally, gold fell below its previous low to $1,222.30 following the Federal Reserve’s interest rate decision. Gold contracts are now the cheapest they have been since January.

Currencies

The U.S. dollar shot to a new 52-week high on news that the Federal Reserve will reduce bond buying by $5 billion a month while keeping rates low. The PowerShares ETF (NYSE: UUP) that tracks the performance of the greenback versus a basket of foreign currencies gained 0.63 percent to 22.53.

Global Markets

Asian markets traded higher last night after Tuesday’s sell off. The Shanghai index gained 0.5 percent with Hong Kong's Hang Seng up 1 percent. Japanese markets gave up 0.1 percent.

European markets were mixed on the day. The Euro Stoxx index, which tracks 50 eurozone blue chips, gained 0.5 percent. London's FTSE gave up 0.2 percent, and France's CAC added 0.5 percent.

Source: benzinga.com

Oil Price Mixed in Asian Trade

Oil prices were mixed in Asia Tuesday following weak economic data from top energy consumers the United States and China, and as dealers await a key US Federal Reserve meeting.

US benchmark West Texas Intermediate for October delivery was down 16 cents at $92.76, while Brent crude for November rose seven cents to $97.95 in afternoon trade. Brent's October contract expired Monday at $96.65, its lowest level since June 2012.

Singapore's United Overseas Bank said "investors continued to fret over anaemic oil demand growth" after the release of US data on Monday.

US industrial production unexpectedly fell in August by 0.1 percent, after six months of gains. Manufacturing output meanwhile fell 0.4 percent.

The data came after China reported over the weekend that growth in industrial production fell sharply to 6.9 percent in August, the slowest pace in more than five years.

Analysts said investors were awaiting the highly anticipated two-day meeting of the Fed's policy-making committee that begins Tuesday.

They are concerned by the prospect the Fed will begin hiking interest rates sooner than expected, and will be scrutinising statements by the bank's chief Yellen on Wednesday.

The Fed has previously said it would keep interest rates low for a considerable time after ending its massive stimulus programme, based on continued weakness in the labour market.

Its once $85 billion-a-month bond buying programme is expected to be fully wound down by the end of October.

Source: yahoo.com

Gold Trades Dropped

Gold Trades Below $1,300 as US. Economy Weighed With Tensions

Gold held below $1,300 an ounce as investors weighed a strengthening U.S. economy and dollar against signs of easing tensions around the world.

Bullion for immediate delivery traded at $1,282.61 an ounce at 9:32 a.m. in Singapore from $1,281.20 yesterday, when prices rose as much as 1.1 percent before ending 0.3 percent higher, according to Bloomberg generic pricing. The metal on Aug. 21 dropped to $1,273.14, the lowest level since June 18, on speculation the U.S. Federal Reserve will raise borrowing costs sooner than forecast.

The dollar climbed to its highest level in almost a year against the euro on speculation the Fed will increase rates next year, while the European Central Bank will add to stimulus. Data today may show German inflation stalled after a report yesterday showed U.S. consumer confidence rose to a seven-year high, sending the Standard & Poor’s 500 Index to a record.

“Gold is helped by some safe-haven demand but U.S. economic data continues to show good growth, and we expect the strong dollar and momentum in stocks to put pressure on prices,” said Huang Wei, a Shanghai-based analyst at Huatai Great Wall Futures Co. “Outflows from the SPDR also shows a slight negative trend.”

Gold for December delivery lost 0.1 percent to $1,283.50 an ounce on the Comex in New York. Holdings in the SPDR Gold Trust fell yesterday for a second day.

Source: bloomberg.com