US SUMMARY: Stocks rise on hopes of credit recovery; oil up

Index Change Percent change

*DJIA 9265.43 +413.21 +4.67

*Nasdaq 1770.03 +58.74 +3.43

*S&P 500 985.40 +44.85 +4.77

eur-usd 1.3323 -0.0116

Brent crude Nymex $74.25 $2.40

10 yr US treasury 3.87 percent

* Monday’s close

STOCKS: A rising wave of optimism lifted Wall Street Monday, propelling the Dow Jones industrials up more than 400 points on more signs of a reviving credit market and support from Federal Reserve chairman Ben Bernanke for further steps to aid the economy.

The improvement in lending rates helped temper concerns that tight credit will contribute to a prolonged recession, but Bernanke still warned that the economy is likely to be “weak for several quarters, and with some risk of a protracted slowdown.”

But he also told the House Budget Committee that a fresh round of government measures might help ease the country’s economic weakness. There were no details but the White House said it was open to ideas that Congress might put forth.

FOREX: The dollar rose Monday, lifted by a report showing that U.S. leading indicators rose in September. Tight credit markets and a push for a new stimulus package for consumers from the Federal Reserve also lifted the currency.

The 15-nation euro fell to $1.3323 in late trading in New York on Monday from $1.3439 late Friday. The British pound fell to $1.7121 from $1.7334, while the dollar edged up to 101.88 yen from 101.75 late Friday.

The dollar also rose to C$1.1930 from C$1.1839, and to 1.1509 Swiss francs from 1.1337.

BONDS: The credit markets were gradually responding to the series of bailout measures by governments around the world, including a joint U.S. and European plan to buy stakes in private banks to boost their lending. Demand for Treasury bills, regarded as the safest assets around, lessened Monday but remained relatively high in a sign that there was still much fear in the markets.

OIL: Crude rose as investors appeared all but assured that OPEC will announce a sizable production cut in an effort to keep oil prices from falling too fast.

GOLD: Gold for December delivery rose $2.30 to $790 an ounce on the Nymex, while December silver rose 3.55 cents to $9.69 an ounce. December copper lost 6.3 cents to $2.1165 a pound.

ASIA SUMMARY: Stocks rise, oil extends gains

Index Change Percent change

Nikkei 225 9163.23 +157.64 +1.75 (0349 GMT)

S&P/ASX 200 4261.00 +118.70 +2.87 (0411 GMT)

Hang Seng 15405.08 +82.07 +0.54 (0354 GMT)

Seoul Composite 1204.19 -3.44 -0.28 (0410 GMT)

BSE Sensex 10223.09 +247.74 +2.48 (0421 GMT)

10-year JGBs 1.590 (Intra-day trade)

STOCKS: Asian stocks rose on Tuesday, boosted by signs that government efforts to push down short-term lending rates were working and by Federal Reserve chairman Ben Bernanke’s comments backing more government spending to stimulate the U.S. economy.

BONDS: Japanese government bonds edged lower and the yield curve steepened on Tuesday as market players prepared for an auction of 30-year bonds and braced for a forthcoming increase in 20-year bond issuance.

The plans for increased 20-year JGB issuance were announced as part of the finance ministry’s plans to scrap issuance of 10-year inflation-linked and 15-year floating-rate JGBs for the rest of the year.

FOREX: The dollar rose against the euro and yen on Tuesday, shrugging off signs of receding risk worries such as rising share prices and falling interbank lending rates, as repatriation moves kept demand strong for the U.S. currency.

The dollar got a boost from Ben Bernanke’s testimony before Congress on Monday endorsing more government spending to stimulate the economy, even if such a move could worsen the already huge U.S. budget deficit and weigh on the dollar long-term.

A bleak outlook on the global economy and expectations for more monetary easing worldwide could also support the dollar as other major central banks such as the European Central Bank have more scope for aggressive rate cuts compared to the Fed, whose policy rate is already low at 1.5 percent.

OIL: Oil gained over $1 to top $75 a barrel on Tuesday, rising for the third consecutive session, on expectations that OPEC will cut output this week to lift prices that have shed half their value in three months. Forecasts of colder weather in the U.S. Northeast also supported values.

U.S. light crude for November delivery rose $1.17 to $75.42 a barrel by 0211 GMT, adding to Monday’s gains of $2.40. London Brent crude rose $1.18 to $73.21.

GOLD: Gold rose more than half a percent on Tuesday, building on the previous session’s 1.7 percent rally, lifted by gains in oil on expectations that OPEC will cut output at an emergency meeting at the end of the week.

Gold rose 0.6 percent to $800.10 an ounce at 0137 GMT from New York’s notional close on Monday, as rising oil prices offset strength in the dollar. Silver rose 2.8 percent to $10.02 an ounce.

EUROPE SUMMARY: Shares, oil rise

Index Change Percent change

*FTSE 4282.67 +219.66 +5.41

*DAX 4835.01 +53.68 +1.12

*CAC 3448.51 +118.59 +3.56

Brent crude $71.48 +$1.88 (Intraday trade)

* Monday’s close

STOCKS: European stocks rose Monday, rallying for a second session as oil shares surged while banks gained on signs of thawing in interbank lending and the possibility of a second U.S. stimulus package. The FTSEurofirst 300 index of top European shares ended up 3.8 percent at the day’s high of 928.29 points.

Britain’s top share index ended up 5.4 percent, extending Friday’s recovery as confidence that the financial crisis may be easing grew, boosting commodity prices which lifted energy and mining stocks.

FOREX: The dollar slipped broadly on Monday, lifting the euro and sterling as steps to rescue the global banking system helped to cool some risk aversion and prompted selling in the U.S. currency.

News of measures to rescue banks around the world, including the Dutch government’s cash injection into ING and South Korea’s pledge to pump funds into its financial system, pushed interbank dollar lending rates lower and helped to quell some of the panic that has gripped markets since September.

The euro traded 0.5 percent higher at $1.3480 by 0825 GMT, after hitting a session high of $1.3530 earlier in the day.

BONDS: Euro zone government bond yields’ slide paused on Monday with the two-year hovering above its lowest in 2-1/2 years as European stocks rose and money market stress showed signs of easing.

OIL: Oil rose on Monday, supported by expectations OPEC may cut output this week to boost prices that have fallen more than 50 percent in just three months from a record high above $147 a barrel.

U.S. crude for November delivery was up $2.07 at $73.92 a barrel by 1420 GMT. London Brent crude rose $1.88 to $71.48 a barrel.

METALS: Gold was firmer on Monday as a recovery in oil prices boosted interest in the metal after last week’s sharp price fall, but retreated from earlier highs as the dollar pared losses against the euro. Spot gold was quoted at $788.40/790.40 an ounce at 1326 GMT, up from $781.70 an ounce late in New York on Friday. Earlier it touched a session high of $808.20.

Platinum rose nearly $70 on Monday to a high of $920, before giving up the majority of those gains to trade at $868.50/888.50 an ounce, against $850.50 in New York on Friday.

Palladium also bounced, rising nearly 7 percent to a session high of $181 before settling back to $178/186 an ounce against $169.50 on Friday. Silver rose 6 percent to $9.95, tracking gold. It was later trading at $9.56/9.64 against $9.37.

Source: http://www.afxnews.com

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