AFX: Gold futures erased initial gains to finish flat on Wednesday
Asian stocks rose, led by steelmakers and energy companies, on speculation industry profits will improve as the global recovery takes hold.
Treasuries rose as 10-year yields near 4 percent, the highest level since October, attracted investors betting the U.S. economic recession will last at least through the end of this quarter. The yield on the 10-year note fell four basis points to 3.92 percent as of 1:36 p.m. in Tokyo
News Summary
U.S. stocks fell, erasing an early gain, as a disappointing auction of 10-year Treasury notes and a jump in oil prices spurred concern higher interest rates and accelerating inflation will threaten the economic recovery.
Investors predict the Standard & Poor’s 500 Index will fall from its highest level in seven months on concern the government’s economic rescue efforts may spur inflation and drive up interest rates, a survey of Bloomberg users showed.
Japan's economy shrank slightly less than initially thought in the first quarter of 2009, but still logged an annualised 14.2 percent contraction amid a global recession, data has shown.
The U.S. economy may achieve positive growth on a quarterly basis in the latter half of this year, the Bank of Japan's chief economist said on Wednesday.
Treasuries fell yesterday as the government sold $19 billion of 10-year notes and Russia said it may switch some reserves from U.S. debt.
Russia announced plans Wednesday to cut the US Treasury bond holdings in its 400- billion-dollar sovereign wealth fund, the central bank's first deputy chairman, Alexei Ulyukayev, said. He added, however, that the move would be gradual and Russia would sell off its Treasuries as they reached maturity.
The slumping US economy is showing only spotty signs of recovery, with overall conditions still weak, the Federal Reserve said in its Beige Book report Wednesday.
Sweden's central bank said Wednesday it would borrow 3.0 billion euros from the European Central Bank to bolster Swedish finances as lenders suffer from exposure to the crisis-stricken Baltics.
Falling US inventories drove oil to a seven-month high above $71 a barrel on Wednesday
The boss of British energy giant BP forecast on Wednesday that world oil prices would trade between 60-90 dollars per barrel in the coming years. Hayward argued that oil producing nations needed a price above 60 dollars to balance their books, while consumers appeared comfortable with prices beneath 90 dollars.
Gold futures erased initial gains to finish flat on Wednesday
Soft commodity futures were mostly softer Wednesday because of a firm dollar
The US trade deficit widened for the second consecutive month in April as exports slumped to a three-year low amid the global economic slowdown, the government said Wednesday.
Higher oil prices accounted for most of the modest increase in the deficit, which came in line with expectations.
US foreclosure filings surpassed 300000 for the third straight month in May and may hit a record 1.8 million by the first half of the year, RealtyTrac Inc. said.
The interbank cost of borrowing three-month dollars, euros and sterling fell on Wednesday, according to the latest daily fixing
Sales at U.S. retailers probably rose in May for the first time in three months as shoppers returned to automobile showrooms seeking bargains, economists said before a government report today.
THE pound pushed the euro down to a fresh 2009 low yesterday, as sterling benefited again from growing hopes of UK economic recovery.
Gordon Brown's hopes of political revival were given a hefty boost when the first increase in industrial output in more than a year signalled that the economy is recovering from the sharpest slump since the second world war.
Bank of England policy maker Andrew Sentance said the U.K. recession may be “bottoming out,” setting the scene for a recovery as soon as this year.
