Dollar Falls Versus Commodity Currencies as Investors Seek Yield

Dollar Falls Versus Commodity Currencies as Investors Seek Yield - Bloomberg

The dollar weakened against currencies of commodity-exporting nations including Australia and Canada as investors sought higher-yielding assets and equities advanced.  The euro fell to its lowest since 2000 versus Sweden’s krona after German Chancellor Angela Merkel said the “European project” is at risk unless policy makers work harder. Sterling declined against the greenback after the Bank of England said interest-rate cuts may be appropriate. Federal Reserve Chairman Ben S. Bernanke repeated to Congress the central bank is ready to take more steps to boost the economy if necessary.

US commodity funds recover every dollar lost in May rout

US commodity funds recover every dollar lost in May rout -Lipper | Reuters


U.S. exchange-traded commodity products and mutual funds in June recovered virtually every dollar that flowed out in May's market rout, data from funds tracker Lipper showed on Thursday, illustrating the strength of the market turnaround.  A Lipper table tracking more than 230 U.S.-regulated commodity products and funds showed a net inflow of $1.65 billion in aggregate for June, versus May's net outflow of the same amount -- give or take a few pennies.  "It's pretty rare for us to see dollar for dollar in recovery, given the commodities complex's volatility, and this is probably the first time it's happened," said Matthew Lemieux, a research analyst who helps compile data for Lipper, a Thomson Reuters company.  "You can put it down to the strength of the commodities rebound you've seen since May, although the money did not flow uniformly back to every sector it came out of."

Futures point to gains driven by earnings

US STOCKS-Futures point to gains driven by earnings | Reuters

U.S. stock index futures looked poised on Thursday to extend its recent rally, even as a weak reading on the labor market underlined the headwinds facing the economy's recovery.  The S&P 500 index was on track for a third day of gains, after Wednesday's advance took it to its highest level since May. The rally has largely been driven by corporate earnings, and investors were cheered by IBM 's move to raise its full-year profit forecast late on Wednesday.  Futures were off session highs early on Thursday as jobless claims rose more than expected in the latest week, the latest in a string of data pointing to weakness.

Gold rebounds on oil rally, technical buying

PRECIOUS-Gold rebounds on oil rally, technical buying | Reuters
Gold rebounded on Thursday after two days of losses, lifted by a drop in the dollar and an across-the-board commodities rally led by oil on increasing geopolitical tensions in the Middle East. Data showing a surge in U.S. new claims for jobless aid and weaker factory activity in the U.S. Mid-Atlantic region improved the outlook for additional economic stimulus from the Federal Reserve and boosted bullion's investment appeal. Bullion, a traditional inflation hedge, has retreated from levels seen earlier this year due to a lack of more-concrete measures by the U.S. central bank to stimulate a slowing economy. This week, Fed Chairman Ben Bernanke again gave no hint of any new round of asset buybacks, or quantitative easing (QE).

U.S. Stock Futures Move Higher on Better-Than-Expected Earnings

U.S. Stock Futures Move Higher on Better-Than-Expected Earnings - WSJ.com
U.S. stock-index futures posted moderate gains Thursday, with investors cheered by a round of second-quarter results coming in slightly better than expected as corporate earnings season moves into full swing.  Futures on the Dow Jones Industrial Average recently rose 57 points to 12917. S&P 500 index futures gained five points to 1372, while Nasdaq 100 futures climbed 15 points to 2635.  "The gloom that had been hanging across the U.S. earnings season, and in turn depressing sentiment globally, does seem to be lifting a little, and with a flurry of better-than-expected results yesterday, markets on both sides of the Atlantic...

Crude Jumps Above $90/Bbl on Mideast Tensions

OIL FUTURES: Crude Jumps Above $90/Bbl on Mideast Tensions - WSJ.com
Crude oil futures Thursday extended their rally of recent days, jumping above the $90 a barrel point on increased tensions in the Middle East.  Nymex front-month futures were trading at $91.48 a barrel, up $1.61. Brent futures were trading at $106.83 a barrel, up $1.67. Both commodities are trading at seven-week highs.  The rally - which marks the seventh straight day in which oil prices have risen - follows an eventful day in the critical Middle East region.  On Wednesday, Israel accused Iran of orchestrating a bombing attack at ...

National Futures Association, Peregrine's Watchdog, Criticized For Taking Brokers At Their Word

National Futures Association, Peregrine's Watchdog, Criticized For Taking Brokers At Their Word
The primary regulator of failed futures brokerage Peregrine Financial Group was criticized in a 2002 report for taking brokers at their word that they would clean up compliance problems.  The Commodity Futures Trading Commission report on the National Futures Association's performance came in the middle of a two-decade long fraud at Peregrine that was only disclosed last week.  "NFA's failure to obtain documentation demonstrating that member firms had corrected compliance problems identified during audits and investigations, or at least written agreements to correct violations, is troubling," the CFTC wrote in what was an otherwise generally upbeat review of the NFA's disciplinary program.  "Accepting oral representations that repetitive compliance problems will be remedied is a questionable practice," the CFTC added.

Dollar Drops Against Most Major Peers as Data Fuel Bets on Fed

Dollar Drops Against Most Major Peers as Data Fuel Bets on Fed - Businessweek
The dollar fell versus most major counterparts as sales of existing U.S. homes unexpectedly slid and Philadelphia-area manufacturing shrank, spurring bets the Federal Reserve will add stimulus that may debase the currency.  Higher-yielding currencies, including the Australian dollar, climbed as risk appetite increased. South Africa’s rand fell against most major peers after the nation unexpectedly cut its benchmark interest rate to bolster its economy. Fed Chairman Ben S. Bernanke yesterday kept open the possibility of more stimulus, including debt purchases under a third round of quantitative easing.

U.S. Stocks Gain as Earnings Offset Economy; Oil Climbs

U.S. Stocks Gain as Earnings Offset Economy; Oil Climbs - Businessweek
U.S. stocks rose, sending the Standard & Poor’s 500 Index to a two-month high, amid better- than-estimated earnings and speculation that disappointing economic data will lead the Federal Reserve to add stimulus. Oil surged, while crops rallied as a drought intensified.  The Standard & Poor’s 500 Index increased 0.3 percent to 1,376.49 at 11:13 a.m. in New York. Ten-year Treasury yields were little changed at 1.49 percent after earlier climbing as much as three basis points. The Dollar Index, a gauge of the currency against six major peers, pared an earlier 0.4 percent drop to trade down less than 0.1 percent. Oil rallied 2.1 percent to lead commodities higher, while wheat and soybeans added more than 1 percent as the worst U.S. drought since 1956 scorched fields.

Copper surges 2 percent, lifted by housing data, dollar

Copper surges 2 percent, lifted by housing data, dollar | Reuters

Copper surged more than 2 percent on Thursday to its highest in over two weeks on a weaker dollar and after stronger housing data from the United States and China bolstered sentiment about demand for industrial metals. Three-months copper on the London Metal Exchange touched a intraday peak of $7,813 per tonne by 1224 GMT, up 2.3 percent, after trading at $7,760 in official rings, adding to two previous sessions of modest rises. It touched the highest levels since July 3, when prices hit $7,823.

Asian Currencies Strengthen on U.S., China Stimulus Speculation

Asian Currencies Strengthen on U.S., China Stimulus Speculation - Businessweek
Asian currencies advanced on speculation policy makers from the U.S. to China will increase economic stimulus measures to support growth, spurring demand for the region’s exports and financial assets.  Malaysia’s ringgit reached a two-week high and South Korea’s won rose for a fifth day, its longest rally in a month, after data showed U.S. housing starts gained 6.9 percent in June to the highest level since 2008. The Federal Reserve is prepared to “take further action as appropriate” and has the capacity to make more bond purchases, Chairman Ben S. Bernanke said in his Congress testimony yesterday. Asian economies may need to ease further as Europe’s debt crisis damps growth, the Asian Development Bank said today.

Corn, soybeans at record highs stir food crisis fears

GRAINS-Corn, soybeans at record highs stir food crisis fears | Reuters
Corn and soybeans soared to record highs on Thursday as their meteoric month-long rally fueled by a worsening U.S. farm-belt drought stirred fears of a food crisis like in 2008 when riots broke out in some countries.  Updated weather forecasts called for light rains in Michigan, Indiana and Ohio on Thursday, but large swaths of the Midwest, which accounts for three-quarters of the corn and soybeans produced in the United States, will remain dry.  As prices for corn and soybeans continue to rise in the world's largest grain exporter, there are signs that importing nations are buying less grains from the United States.