US SUMMARY: Shares rally, oil at 3-month low

Index Change Percent change

*DJIA 11782.35 +48.03 +0.41

*Nasdaq 2439.95 +25.85 +1.07

*S&P 500 1305.32 +9.00 +0.69

Nymex crude

for September $114.45 -75 cents

10 year U.S.

Treasury +4.00 percent

*Monday’s close

STOCKS: U.S. stocks rallied on Monday as oil prices fell below $114 per barrel for the first time in more than three months, improving the outlook for consumer and business spending, and Amazon.com’s shares jumped after a broker said a key product appeared to be selling well.

Apple jumped more than 3 percent on news of strong sales of iPhone software, giving a major lift to both the S&P 500 and the Nasdaq. AT&T Inc., the iPhone’s exclusive carrier in the United States, rose nearly 3 percent, becoming the biggest boost on the S&P 500.

BONDS: Treasury prices fell again Monday in relatively light trading as the price of oil extended its decline and lured investors back into the stock market.

OIL: Oil prices finished at a new three-month low Monday after briefly dropping below $113 a barrel mark, as the dollar extended its rebound and more signs emerged that China’s energy demand could be levelling off.

In earlier trading, oil fluctuated as traders monitored the conflict between Russia and Georgia that some believe could disrupt supplies. But those worries faded to the background as the dollar’s recovery accelerated, and as the energy market focused on a report from China that the country’s crude oil imports in July were down 7 percent from last year.

FOREX: The dollar firmed up against most major currencies Monday as crude oil slid to a new three-month low.

The 15-nation euro fell below $1.50 after breaking that barrier Friday for the first time since February. The dollar bought $1.4928 in late New York trading, compared with $1.5013 late Friday.

The British pound slipped to $1.9120 from $1.9198, while the dollar slipped from its seven-month highs against the yen Friday. It fell to 110.03 Japanese yen from 110.24 yen.

METALS: Precious metals sank again in trading Monday, as the dollar moved higher against the euro and pound.

Gold for December delivery lost $36.50 to settle at $828.30 an ounce on the Nymex. Silver for September delivery fell 71 cents to settle at $14.62 an ounce on the Nymex. September copper fell 4.13 cents to settle at $3.2915 a pound.

ASIA SUMMARY: Shares mixed, oil eases

Index Change Percent change

Nikkei 225 13373.99 -56.92 -0.42 (0346 GMT)

S&P/ASX 200 5063.60 +37.50 +0.75 (0406 GMT)

Straits Times 2825.90 +0.51 +0.02 (0352 GMT)

Hang Seng 22012.47 +153.13 +0.70 (0351 GMT)

Seoul Composite 1585.42 +4.33 +0.27 (0422 GMT)

BSE Sensex 15,577.20 +73.28 +0.47 (0430 GMT)

usd-yen 110.25 (Intra-day)

10-year JGBs +1.46 percent (Intra-day)

Brent North Sea $112.41 -26 cents

crude for September

STOCKS: Asian stocks edged lower despite oil prices retreating for five of the last six days, as focus centred on the potential for further economic weakness, particularly after data showed Japan’s wholesale inflation at the highest in 27 years.

However, Hong Kong opened higher on Wall Street gains.

BONDS: The Japanese government bonds dropped for the first time in five days as the country’s wholesale inflation reached a 27-year high.

OIL: Oil fell on Tuesday as the U.S. dollar firmed to six-month highs, countering concerns over possible supply disruptions due to the Russia-Georgia clash.

Worries over slowing global demand also put prices under pressure, after world No. 2 consumer China posted a surprise drop in July crude imports.

FOREX: The U.S. dollar hit its highest level against the euro since February on Tuesday, rising for a sixth day as prices of oil, copper, gold and other metals fell further as investors anticipate lower global demand.

METALS: Gold ticked up in Europe on Monday as higher oil prices fuelled bargain hunting after the metal slipped to a three-month low on Friday, but a stronger dollar capped gains.

EUROPE SUMMARY: Shares firm, oil rebounds

Index Change Percent change

*FTSE 5541.80 +52.60 +0.96

*DAX 6609.63 +47.98 +0.73

*CAC 4538.49 +46.64 +1.04

pound-dollar $1.9186 (1428 GMT)

euro-dollar $1.4998 (1428 GMT)

Brent crude

(September) $113.66 +33 cents (Intra-day)

*Monday’s close

STOCKS: UK blue chips closed higher on Monday, boosted by the banking sector, and having received a fillip as the DJIA moved into positive territory.

European shares hit a six-week closing high on Monday as the euro boosted export-sensitive stocks such as carmakers, while fighting between Russia and Georgia gave early support to oil prices and helped the energy sector.

BONDS: European government bonds remained lower in quiet trade, pressured by the buoyant risk appetite on equity markets in the euro zone despite geopolitical tensions between Georgia and Russia.

With little major economic news and European markets quiet for the holiday season, analysts said most trade was corrective with nothing to provide any fresh direction.

FOREX: The euro was under pressure, flirting with the $1.50 level as the dollar continued its fine run from last week steady, consolidating after last week’s sharp rally by the U.S. currency.

The pound was steady after official data revealed pipeline inflationary pressures in the United Kingdom did not rise quite as quickly as markets expected in July.

OIL: Oil prices rebounded on Monday as fighting between Russia and Georgia disrupted exports from the Caspian region.

Oil had fallen more than $5 on Friday, when it largely ignored the outbreak of hostilities in the Caucasus region, a key transit route for oil and gas from the Caspian.

METALS: Gold ticked up in Europe on Monday as higher oil prices fuelled bargain hunting after the metal slipped to a three-month low on Friday, but a stronger dollar capped gains.

Source: http://www.afxnews.com

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