Norway's wealth fund earns 131 billion euros in first half

OSLO, Norway - Oil producer Norway's sovereign wealth fund earned 131 billion euros in the first half of the year, the country's central bank said on Tuesday.

The performance, lifted by the financial markets, represented a return of 10 percent and helped boost the fund's value to 15,299 billion kroner (1,332 billion euros) at the end of June.

In six months, the fund has almost wiped out the huge 1,637 billion kroner loss incurred last year as a result of the war in Ukraine and the global economic downturn.

Norway's wealth fund is the world's biggest, according to the Sovereign Wealth Fund Institute, just ahead of two Chinese funds.

Fuelled by revenues from Norway's state-owned oil and gas companies, the fund is aimed at financing future spending in the generous welfare state.

Since the start of the year, the vast fund has also benefited from the weakening of the krone, which has increased the value of assets held in dollars, euros and other foreign currencies.

In total, the fund's value increased by 2,870 billion kroner over the first six months of the year.

Norges Bank had been set to publish the half-year results on Wednesday, but they were mistakenly sent to the media late Tuesday.

Agence France-Presse

European Central Bank again eyes jumbo rate hike to 'tame inflation beast'

BRUSSELS - The European Central Bank is expected to set aside recession worries and deliver another jumbo interest rate hike this week to cool inflation, as Russia's war on Ukraine sends energy prices soaring.

Inflation in the 19-nation eurozone climbed to an all-time high of nearly 10 percent in September, five times the ECB's target of two percent.

The ECB's governing council last month raised its key interest rates by an unprecedented 75 basis points, and many observers expect it to repeat the move at Thursday's meeting.

Households and businesses are bracing for a grim winter as Russia continues to squeeze gas supplies to Europe, raising fears of energy shortages and high electricity and heating bills.

The war has also pushed up food costs, while pandemic-era supply chain snarls combined with higher manufacturing costs have added to price pressures on a range of goods.

"Those who thought inflation was dead now know better," said Joachim Nagel, the head of Germany's Bundesbank central bank.

"Now the beast has woken up from its slumber... it's up to monetary policymakers to tame it again," he recently told students at Harvard University.

Like other central banks, the ECB is using a series of rate hikes to bring inflation under control -- at the risk of slowing economic activity to such an extent that it triggers a downturn.

"The 75 basis point rate hike looks like a done deal," said ING economist Carsten Brzeski.

"The ECB has turned a blind eye on recession risks," he added.

Analysts from Capital Economics said they saw the ECB going even bigger, predicting a 100 basis-point jump followed by smaller hikes over the coming months.

In the United States, where inflation is running at a 40-year high, the Federal Reserve recently said there was no "painless" way to combat runaway prices.

A slowdown of economic growth and the US job market will be "required" to bring down inflation, said the Fed, which has hiked rates faster and more aggressively than the ECB.

ECB president Christine Lagarde has warned that the euro area was also facing "a significant slowdown".

If Russia completely cuts off gas flows to Europe, the eurozone economy could shrink by nearly one percent in 2023, ECB vice-president Luis de Guindos added.

It's a scenario that has become more likely after Russia in late August halted gas flows through the crucial Nord Stream 1 pipeline to Europe's biggest economy, Germany.

The German economy, whose energy-hungry industries relied heavily on Russian gas before the war, is now forecast to shrink by 0.4 percent in 2023.

Chancellor Olaf Scholz has unveiled a 200-billion-euro ($197 billion) energy fund to help citizens cope with price shocks, irking European neighbors who can't afford the same fiscal largesse.

With other eurozone countries such as France and Spain also rolling out support measures, the ECB has warned governments not to fall into the trap of spending so much that they boost inflation.

Germany's hawkish Finance Minister Christian Lindner agreed, saying last week that fiscal policy "must not counter the measures of central banks" by strengthening demand.

The ECB is also expected to use this week's meeting to discuss bringing other monetary policy levers in line with its inflation-busting efforts.

Policymakers are likely to consider changes to the super cheap, long-term loans (TLTROs) offered to banks in recent years to help the eurozone through several crises -- sometimes at negative rates.

As a consequence of the ECB's rapid rate hikes since July, lenders can now make a profit by parking their excess TLTRO cash at the central bank and pocketing the new, higher deposit rate -- leaving the ECB looking for ways to incentivize early repayment of the loans.

The ECB may also ponder how best to shrink its multi-trillion-euro balance sheet, after years of hoovering up government and corporate bonds to drive up stubbornly low inflation.

But given the uncertain outlook and the risk of rattling financial markets, analysts say the start of any "quantitative tightening" is some way off.

Agence France-Presse

Global stocks fall as Euro hits new 20-year low

NEW YORK, United States - Global stocks were down Tuesday as the euro dove to a new two-decade low against the dollar and traders waited nervously for news on the next US interest rate hikes.

The single currency tumbled to $0.9901, but later clawed back losses as the greenback was hit by poor US economic data.

The dollar had strengthened this week against other currencies ahead of a speech Friday by US Federal Reserve chief Jerome Powell, as markets speculate that the central bank will continue tighten its monetary policy.

Higher interest rates boost the American currency as they make dollar-denominated debt more attractive to investors.

But the euro also has been weighed down by a gloomy outlook for the eurozone economy as Russia's war in Ukraine has sent energy prices soaring.

The unit plunged below parity with the dollar Monday on recession fears to plumb the lowest levels since 2002, when it first came into physical circulation.

In the latest blow, S&P Global's closely watched monthly composite purchasing managers' index (PMI) showed that eurozone economic activity fell for the second month in a row in August.

'Investors are bracing' 

Wall Street indices ended mostly lower, with the Dow Jones falling 0.5 percent.

With the Jackson Hole central banking symposium this week, the focus is on what Fed chief Powell says about plans to tackle high prices, with many fearing officials could send the economy into recession.

"I think that investors are bracing for some hawkish commentary from Fed chair Powell this coming week," said Jack Ablin of Cresset Capital.

European equities and Asian markets also slid amid stubborn worries about the Fed's movements.

US natural gas prices meanwhile hit a fresh 14-year high on Tuesday at $10.028.

But across the Atlantic, European natural gas prices fell, although they remain elevated on fears of a halt to Russia's gas deliveries. The Dutch TTF Gas Futures contract stood at 268.45 euros down from Monday.

Gas had spiked to record peaks in March after key producer Russia launched its invasion of neighboring Ukraine.

That has sparked surging domestic energy bills, fueling decades-high inflation that has prompted tighter monetary policy around the world.

Moscow's maneuvers have hit the single currency hard because the bloc relies heavily on imported Russian gas, said Societe Generale analyst Kit Juckes. 

Fears increased after Russia's Gazprom said Friday the Nord Stream pipeline would be closed for maintenance at the end of the month, cutting Europe's crucial gas deliveries.

"The euro's problem is... the threat from continued squeezing of gas supplies and the cost of replacing Russian gas," Juckes said.

Oil prices -- which have fallen for weeks as recession worries hit demand expectations -- rebounded after Saudi Arabia suggested OPEC and other major producers could cut output citing "volatility" in crude markets.

Key figures at around 2030 GMT

New York - Dow: DOWN 0.5 percent at 32,909.59 points (close)

New York - S&P 500: DOWN 0.2 percent at 4,128.73 (close)

New York - Nasdaq: UNCH at 12,381.30 (close)

EURO STOXX 50: DOWN 0.2 percent at 3,652.52 (close)

London - FTSE 100: DOWN 0.6 percent at 7,488.11 (close)

Frankfurt - DAX: DOWN 0.3 percent at 13,194.23 (close)

Paris - CAC 40: DOWN 0.3 percent at 6,362.02 (close)

Tokyo - Nikkei 225: DOWN 1.2 percent at 28,452.75 (close)

Hong Kong - Hang Seng Index: DOWN 0.8 percent at 19,503.25 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,276.22 (close)

Euro/dollar: UP at $0.9973 from $0.9943 Monday

Pound/dollar: UP at $1.1835 from $1.1767

Euro/pound DOWN at 84.25 pence from 84.98 pence

Dollar/yen: DOWN at 136.7710 yen from 137.48 yen

West Texas Intermediate: UP 3.7 percent at $93.74 per barrel

Brent North Sea crude: UP 3.9 percent at $100.22

Agence France-Presse

Asia shares mostly lower amid rising coronavirus cases, Washington turmoil

NEW YORK - Asian stocks were mostly lower on Tuesday, tracking Wall Street declines as political turmoil in Washington and rising coronavirus cases worldwide weighed on sentiment ahead of the start of the quarterly earnings season.

Political uncertainty dominated trading as House Democrats introduced a resolution to impeach U.S. President Donald Trump, accusing him of inciting insurrection following a violent attack on the Capitol last week.

Several big tech giants, including Twitter Inc, Amazon.com Inc , Alphabet Inc, Facebook Inc and Apple Inc, have taken actions against Trump and his network of supporters, as concerns mounted over the risk of continued violence.

Twitter’s stock tumbled 6.4 percent on Monday after the micro-blogging site permanently suspended Trump’s account last Friday.

Investors also kept an eye on the continued spread of the coronavirus globally as cases surpassed 90 million on Monday, according to a Reuters tally.

“The weakness was led by tech and I think the banning of Trump’s account by Twitter and Amazon stepping up against Parler all brought a renewed focus on increased regulation and reining in on tech,” said Thomas Hayes, chairman of Great Hill Capital in New York.

Japan’s Nikkei slipped 0.48 percent, South Korea’s KOSPI fell 0.91 percent and Hong Kong’s Hang Seng index futures lost 0.54 percent.

Defying the broader selloff, Australia’s S&P/ASX 200 rose 0.24 percent.

On Wall Street, the Dow Jones Industrial Average fell 0.29 percent, the S&P 500 lost 0.66 percent and the Nasdaq Composite dropped 1.25 percent.

Investors are expecting guidance on the extent to which executives see a rebound in 2021 earnings and the economy from results and conference calls from JP Morgan, Citi and Wells Fargo Friday.

Meanwhile, longer-term Treasury yields were at their highest since March before new long-dated supply coming this week and on speculation of more U.S. fiscal stimulus as Democrats will have control of Congress and the White House.

“People are optimistic to see the yield curve steepening and it could help spreads and net interest margins for banks,” Hayes said.

Benchmark 10-year notes last fell 11/32 in price to yield 1.1443 percent, from 1.107 percent late on Friday.

The spread between the two-year and 10-year Treasury yields brushed against 100 basis points to hit its steepest since July 2017.

The climb in yields in turn offered some support to the dollar, which rose to its highest in over two weeks against a basket of currencies.

The U.S. dollar index rose 0.256 percent, with the euro down 0.54 percent to $1.2152. The Japanese yen weakened 0.24 percent versus the greenback at 104.20 per dollar, while Sterling was last trading at $1.3516, down 0.35 percent on the day.

Crude oil prices fell, hit by renewed concerns about global fuel demand amid tough coronavirus lockdowns across the globe, as well as the stronger dollar.

U.S. crude recently fell 0.1 percent to $52.19 per barrel and Brent was at $55.61, down 0.68 percent on the day.

Safe-have spot gold dropped 0.2 percent to $1,844.27 an ounce. Silver fell 1.70 percent to $24.94.

-reuters-

ECB cuts key rate, to restart bond purchases

FRANKFURT - The European Central Bank approved a fresh stimulus package as expected on Thursday, cutting interest rates and approving a new round of bond purchases to prop up eurozone growth and halt a worrisome drop in inflation expectations.

The ECB cut its deposit rate to a record low -0.5 percent from -0.4 percent and will restart bond purchases of 20 billion euros a month from November, it said in a statement.

With inflation falling, Germany skirting a recession and a global trade war sapping domestic confidence, the ECB had all but promised more support to the economy and the only question was how extensive stimulus would be.

"The Governing Council expects (bond purchases) to run for as long as necessary to reinforce the accommodative impact of its policy rates, and to end shortly before it starts raising the key ECB interest rates," the ECB said in a regular policy statement.

The ECB also eased the terms of its long term loans to banks and introduced a tiered deposit rate to help banks.

Economists polled by Reuters expected a 10 basis point deposit rate cut, a tiered deposit rate to support banks, bond buys of 30 billion euros a month from October and a fresh promise to keep rates low for longer.

"The Governing Council now expects the key ECB interest rates to remain at their present or lower levels until it has seen the inflation outlook robustly converge to a level sufficiently close to, but below, 2 percent within its projection horizon, and such convergence has been consistently reflected in underlying inflation dynamics," the ECB said.

Attention now turns to ECB President Mario Draghi's 1230 GMT news conference, at which he will also present fresh growth and inflation projections.

(Reporting by Balazs Koranyi, Francesco Canepa and Michelle Martin; Editing by Catherine Evans)

source: news.abs-cbn.com

Pound set for longest losing streak vs euro as Brexit plan disintegrates

LONDON - Sterling fell broadly on Wednesday and was on track for its longest ever losing streak against the euro as Prime Minister Theresa May's last-ditch Brexit plan failed to win over either opposition lawmakers or many in her own party.

With the plan appearing dead in the water, some traders said they saw a rising chance of Britain leaving the European Union without a transition deal.

The pound fell 0.3 percent to $1.2663, its lowest since mid-January, and weakened a similar amount against the euro to 88.135 pence. The sterling is set for its 13th straight day of falls against the euro, measured by London trading prices, the longest such run since the euro began trading in 1999, according to Refinitiv data.

"The action from Labour and eurosceptic Tory members was quite negative and an updated deal passing parliament looks quite distant now," said Nomura FX strategist Yujiro Goto.

"It may depend on the result of the EU parliamentary election over the weekend, but this could mean May resigns over the weekend. It was generally expected by the market, but it became clearer yesterday."

The EU parliamentary election is due to run from Thursday to Sunday, and opinion polls suggest Nigel Farage's Brexit Party will poll strongly.

In mid-March, banks informally canvassed by Reuters saw a diminishing chance of a "no-deal" Brexit.

This week though there were signs some were changing their mind, with JPMorgan upping its probability of a no-deal Brexit to 25 percent from 15 percent. Another bank, Nordea, raised the chance of no-deal Brexit to 15 percent, compared to 10 percent in March while Mizuho strategists now see no-deal chances rising towards 50 percent.

"Personally, I suggest chances of no-deal (Brexit) is nearer 50 percent given the way things are shaping up right now. Looking for lower sterling-dollar trend to continue into the EU election and beyond," said Neil Jones, head of hedge fund currency sales at Mizuho.

Others stuck to previous forecasts ranging around 15-20 percent. JPM also said it was expecting a national election and Brexit delayed to year-end.

Broader market positioning on the pound suggested more volatility in store for the British currency. Outstanding net short positions on the pound were whittled back sharply in recent weeks when hopes grew that May could secure a deal.

With positioning broadly neutral, sterling has become more vulnerable to headline-driven selloffs.

WHAT INFLATION?

Data on Wednesday showed British inflation rose last month by less than investors and the Bank of England had expected. But it still hit its highest level this year, pushed up by higher energy bills.

Yet, with politics dominating currency trading so heavily, there was barely any reaction from sterling.

Money markets now do not expect a BOE rate rise this year and are starting to price out 2020 hikes as well.

Ten-year British government bond yields slipped 3.6 basis points and their yield premium over German debt tightened to its narrowest in six weeks, implying greater demand from British investors for government bonds.

"Brexit, rather than inflation, is at the moment the key driver of interest rates. And with the uncertainties on this front growing rather than falling and no early resolution in sight, rates look set to remain firmly on hold for the time being," said Rupert Thompson, head of research at Kingswood.

(Reporting by Saikat Chatterjee and Abhinav Ramnarayan; Editing by Tommy Wilkes, Andrew Heavens and Alexandra Hudson)

source: news.abs-cbn.com

World stocks slip as growth fears linger; euro slides

NEW YORK -- The dollar rose to almost a two-year high against the euro on Thursday on an upbeat US capital goods report, while world equities slid as weak economic data from South Korea and a profit warning from 3M Co renewed concerns about global growth.

New orders for US-made capital goods increased by the most in eight months in March, which combined with worries about the economic health of the euro zone knocked the single currency to its lowest against the greenback since May 2017.

Other data showed the number of Americans filing claims for unemployment benefits last week was the biggest in 19 months, but the trend remains consistent with a strong labor market.

"The dollar is benefiting from strong domestic data, weak data abroad and a slew of dovish central bank meetings," said John Doyle, vice president of dealing and trading at Tempus Inc in Washington.

The euro fell 0.19 percent to $1.1131, while European shares slid after a mixed bag of earnings from the region.

Finnish telecom network equipment maker Nokia tumbled 9 percent, its biggest decline in 18 months. Nokia reported a surprise quarterly loss after it failed to supply 5G telecoms equipment on time.

The pan-European STOXX 600 index closed down 0.21 percent and MSCI's gauge of stock performance in 47 countries shed 0.25 percent.

On Wall Street, strong results from Facebook and Microsoft Corp lifted the tech-heavy Nasdaq to a new intra-day record but were offset by dismal earnings in industrials, including 3M and United Parcel Service Inc .

UPS fell 8.1 percent and the industrial sector slid 2 percent, while Facebook gained 5.8 percent and Microsoft Corp rose 3.3 percent.

The Dow industrials fell 1 percent at one point, dragged down by a 13 percent plunge in 3M shares after the company reported a lower-than-expected quarterly profit, cut its 2019 earnings forecast and said it would lay off 2,000 workers globally.

The Dow Jones Industrial Average fell 134.97 points, or 0.51 percent, to 26,462.08. The S&P 500 lost 1.08 points, or 0.04 percent, to 2,926.17 and the Nasdaq Composite added 16.67 points, or 0.21 percent, to 8,118.68.

Asian markets slid earlier in the day, losing 0.5 percent as South Korea's economy unexpectedly contracted in the first quarter, a reminder of economic fragility outside the United States.

Shanghai's bourse also fell late in the day, losing more than 2 percent on the latest central bank efforts to temper expectations for further monetary policy easing.

Chinese officials also warned of protracted pressure on economic growth, casting a shadow over hopes for a sustained recovery in the world's second-biggest economy.

The dollar index, which measures the greenback versus a basket of six major peers, held near its highest level since May 2017. The index was up 0.1 percent.

The Japanese yen strengthened 0.48 percent versus the greenback at 111.63 per dollar.

The Turkish lira weakened 0.95 percent against the dollar after Turkey's central bank left interest rates unchanged at 24 percent but in a dovish shift dropped a previous reference to possible further tightening if needed to address inflation.

US Treasury yields rose as investors piled into the safe-haven government bonds following a dovish report from Canada's central bank and solid demand at auction for $41 billion of new five-year notes.

Benchmark U.S. Treasury 10-year notes fell 3/32 in price to push yields up to 2.5343 percent.

Oil prices eased after Brent touched $75 per barrel for the first time in nearly six months on the suspension of some Russian crude exports to Europe.

Brent crude futures settled down 22 cents at $74.35 a barrel. U.S. crude fell 68 cents to settle at $65.21.

US gold futures settled unchanged at $1,279.70 an ounce.

source: news.abs-cbn.com

Dollar dips, stocks slip on Trump remarks

SYDNEY - The dollar declined on Monday against major currencies to its lowest in more than two weeks after US President Donald Trump criticized the Federal Reserve's tightening policy, while stocks slipped on fears of further trade protectionist measures.

Trump, on Friday, lamented the recent strength of the US dollar and accused the European Union and China of manipulating their currencies.

The remarks, coupled with Trump's threats to impose tariffs on all US imports from China, triggered a bout of sell-offs in Wall Street and European stocks on Friday, despite good corporate earnings.

Asian stocks followed that lead on Monday with Japan's Nikkei stumbling 0.9 percent. Australian shares were off 0.1 percent while the New Zealand market was down 0.4 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan was up a touch waiting for other markets to open.

Trump's comments also hit the greenback, which was last down 0.2 percent at 94.25 against a basket of six major peers, and steepened long-term Treasury yields.

"The President's remarks also make it very clear he has a distaste for a stronger dollar, effectively limiting the greenback's ability to perform, at least near term," said Rodrigo Catril, senior forex strategist at National Australia Bank.

The dollar index is so far up 2.4 percent this year.

A Reuters report on Friday that the Bank of Japan was in unusually active discussions to modify its massive easing also played a role in the tick-up in yields globally.

Benchmark 10-year Japanese Government Bond futures opened weaker on Monday, sending yields to six-month highs. The Reuters report also added to the yen's strength, which was last up 0.3 percent at 111.07 per dollar.

"The market took the news as a possible sign the anchor at the long end may allow for some natural drift higher," ANZ said in a note to clients.

Investors are now looking ahead to an important meeting on trade between Trump and European Commission President Jean-Claude Juncker at the White House. A breakdown in talks could hit risk sentiment, hurting global equities, analysts said.

The euro climbed for a third straight day to a two-week top of $1.1746.

In commodities, oil prices were caught between a weakening dollar which supported the market and concerns about US-China trade tensions and supply increases which undermined sentiment.

US crude was last off 3 cents at $68.24 a barrel after posting its third straight weekly loss. Brent settled at $73.18, up 11 cents.

source: news.abs-cbn.com

U.S. dollar heads for worst year since 2003

NEW YORK - The dollar fell to its lowest in over three months against a basket of major currencies on Friday, on track for its biggest annual drop since 2003, on doubts over durability of a pickup in U.S. economic growth in wake of last week's tax overhaul.

One of the most dramatic market developments in 2017 was the breath-taking rise of bitcoin and other cryptocurrencies. While they have pulled back at year-end, many of these digital currencies have surged in value this year.

The greenback may lag further against its peers in 2018 as investors expected other major central banks to reduce their stimulus while the Federal Reserve has signaled it would raise interest rates further, analysts said.

"The dollar will face more headwinds in 2018," said Chris Gaffney, president of Everbank in St. Louis, Missouri. "The Fed won't be going at it alone in terms of taking off more gas from the stimulus pedal."

Bets the European Central Bank might consider raising interest rates by the end of 2018 due to evidence of higher inflation and business activity in the euro have lifted the euro, which was poised for its best yearly performance versus the greenback in 14 years.

The euro hit a three-month peak at $1.2013, bringing its annual gain to 14.1 percent. It was last up 0.68 percent at $1.2022.

Euro's rally was a drag on the greenback in 2017. The index that tracks the dollar versus the euro and five other major currencies fell as low as 92.169, which the lowest since Sept. 22. It was on track for its steepest annual decline since 2003.

The dollar also weakened against the yen, sterling, Canadian dollar, Swedish krona and Swiss franc, which are the other index components this year.

The dollar index at a 14-year peak at the start of 2017 on hopes for U.S. President Donald Trump's pro-growth economic agenda. Barring the most dramatic rewrite of the U.S. tax code in 20 years enacted last week, Trump and Republican lawmakers have struggled to pass legislation.

Furthermore, many institutional investors close their books at the year-end, a deadline for taxation and performance reporting, a time seen leading to dollar selling pressure, analysts said.

Outside of traditional currencies, bitcoin and other cryptocurrencies rebounded after two days of losses tied partly to more regulators toughening rules on digital currencies in a bid to curb excessive speculation.

Bitcoin was last up 1.13 percent at $14,599.99 on the Bitstamp exchange. It was off the record highs near $20,000 touched 12 days ago but still headed for a gain of roughly 1,400 percent in 2017.

Financial markets around the world will be closed on Monday on New Year's Day.

source: news.abs-cbn.com

US stocks fall on weak earnings, strong pound hits FTSE

NEW YORK - US stocks retreated Wednesday following a batch of mostly lackluster earnings, while a stronger pound hammered London's FTSE 100.

US stocks have hit numerous records over the last month, boosted in part by good earnings. But disappointing reports Wednesday from AT&T and Boeing, among others, led to declines in both those companies and the broader market.

"Earnings season has been good overall, but we are still seeing some misses," said Gorilla Trades strategist Ken Berman. "Bulls know that a brief pullback might be necessary."

Investors were also rattled by discord among Republicans that could halt progress on President Donald Trump's tax cut plan, a key investor priority.

In a withering address on the Senate floor, Arizona Republican Senator Jeff Flake announced Tuesday he was retiring from the body and lambasted Trump for "reckless, outrageous and undignified behavior."

Earlier, Republican Senator Bob Corker of Tennessee, who is also retiring, called Trump an "utterly untruthful" leader who "debases" the nation.

The strife "creates great anxiety about tax reform," said Tom Hainlin of US Bank's Ascent Private Capital Management.

London's FTSE 100, meanwhile, dropped 1.1 percent after Britain's GDP grew 0.4 percent in the third quarter, slightly outperforming expectations.

The pound, which has been under pressure over suggestions that a hike in interest rates may be delayed, spiked after the positive GDP results, rising against the dollar and the euro.

"Ultimately, a respectable growth rate in the UK economy will assist the equity benchmark in the long run, but for now the pound is putting pressure on it," said David Madden, market analyst at CMC Markets UK.

Eurozone stocks also retreated ahead of the European Central Bank's policy meeting Thursday, at which it is expected to announce a big reduction in its bond-buying stimulus as the eurozone economy picks up.

Frankfurt fell 0.5 percent to drop back below the 13,000 point level, while Paris shed 0.4 percent.

Analysts expect the ECB will slash the volume of corporate and government bonds it buys each month in half -- from 60 billion to 30 billion euros -- but extend the duration of the program while pledging to keep the monetary tap open and interest rates at historic lows for longer, in order to help financial markets adjust.

In Asia, a phenomenal run of 16 straight days of gains finally ended in Tokyo on Wednesday as a late bout of profit-taking saw the Nikkei close in negative territory for the first time this month.

KEY FIGURES AROUND (5 a.m. Thursday in Manila)

New York - DOW: DOWN 0.5 percent at 23,329.46 (close)

New York - S&P 500: DOWN 0.5 percent at 2,557.15 (close)

New York - Nasdaq: DOWN 0.5 percent at 6,563.89 (close)

London - FTSE 100: DOWN 1.1 percent at 7,447.21 points (close)

Frankfurt - DAX 30: DOWN 0.5 percent at 12,953.41 (close)

Paris - CAC 40: DOWN 0.4 percent at 5,374.89 (close)

Madrid - IBEX 35: DOWN 0.5 percent at 10,153 (close)

EURO STOXX 50: DOWN 0.6 at 3,588.49

Tokyo - Nikkei 225: DOWN 0.5 percent at 21,707.62 (close)

Hong Kong - Hang Seng: UP 0.5 percent at 28,302.89 (close)

Shanghai - Composite: UP 0.3 percent at 3,396.90 (close)

Euro/dollar: UP at $1.1813 from $1.1760 at 2100 GMT

Pound/dollar: UP at $1.3257 from $1.3131

Dollar/yen: DOWN at 113.78 yen from 113.93 yen

Oil - West Texas Intermediate: DOWN 29 cents at $52.18 per barrel

Oil - Brent North Sea: UP 11 cents at $58.44 per barrel

source: news.abs-cbn.com

US stocks hit new records, but euro slides on Spanish clash

NEW YORK - Global stocks mostly rose Monday following strong economic data, with US indices notching fresh records, while the euro slid following the police crackdown on the banned Catalonia independence referendum.

Data showed eurozone unemployment held steady at an 8-year low in August, while manufacturing reports in both the US and Japan came in at multi-year peaks.


"Evidence continues to mount that the damage inflicted on the national economy by hurricanes Harvey and Irma will be very modest," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said after the Institute for Supply Management purchasing managers index for US manufacturing hit a 13-year high.

"The big picture," Shepherdson added, "is one of broad, sustained strength."

Analysts were bullish about third-quarter US earnings season, which kicks off in earnest in about 10 days. Companies in the S&P 500 are projected to report a 5 percent year-over-year gain in operating earnings-per-share (EPS), according to CFRA Research.

All 3 US indices ended at records, with the Dow Jones Industrial Average gaining 0.7 percent to 22,557.60.

Analysts said sentiment was not affected by the mass shooting at a Las Vegas hotel that resulted in at least 58 fatalities. However, MGM Resorts, which owns the hotel, fell 5.6 percent.

Equity markets in London, Paris, Frankfurt and Tokyo all gained.

'CHAOS IN CATALONIA'

But Spain's IBEX index fell 1.2 percent and the euro dropped against the dollar following the upheaval in the country.

"Traders are clearly a little concerned about the impact of the (Catalan) vote, not to mention how the situation was handled by the Spanish authorities," said Oanda analyst Craig Erlam.

Spain will do "everything within the law" to prevent Catalonia from declaring independence, Justice Minister Rafael Catala said Monday, a day after Catalonia's regional government declared victory in a banned secession referendum.

"The chaos in Catalonia yesterday on the back of the referendum on independence has sent the Spanish stock market lower," said CMC Markets analyst David Madden.

"Violent clashes between the police and voters has spooked investors, and money is flowing out of the country on account of it.

"Thanks to the heavy-handed response from Madrid, the Catalonian question has now become even more divisive."

Joe Manimbo, senior market analyst, said uncertainty in Spain along with questions about German governance following last week's mixed election outcome for Chancellor Angela Merkel raised questions about whether the European Central Bank would move ahead with plans to taper monetary stimulus.

A pause on that plan, "if realized, would leave the euro, the year's best performing major currency, vulnerable to further losses over the short run," Manimbo said.

KEY FIGURES AT AROUND 2100 GMT (5 a.m. Tuesday in Manila)

New York - DOW: UP 0.7 percent at 22,557.60 (close)

New York - S&P 500: UP 0.4 percent at 2,529.12 (close)

New York - Nasdaq: UP 0.3 percent at 6,516.72 (close)

London - FTSE 100: UP 0.9 percent at 7,438.84 (close)

Frankfurt - DAX 30: UP 0.6 percent at 12,902.65 (close)

Paris - CAC 40: UP 0.4 percent at 5,350.44 (close)

Madrid - IBEX 35: DOWN 1.2 percent at 10,255.70 (close)

EURO STOXX 50: UP 0.2 percent at 3,602.69 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 20,400.78 (close)

Euro/dollar: DOWN at $1.1733 from $1.1.1818 late Friday

Dollar/yen: UP at 112.71 yen from 112.52 yen

Pound/dollar: DOWN at $1.3277 from $1.3398

Oil - Brent North Sea: DOWN 67 cents at $56.12 per barrel

Oil - West Texas Intermediate: DOWN $1.09 at $50.58 per barrel

source: news.abs-cbn.com

Euro jolted briefly by Spanish vote, Asia data augur well

SYDNEY - The euro took a brief knock in Asia on Monday as investors kept an anxious eye on an independence vote in Spain's Catalonia, although surprisingly strong economic news out of China and Japan offered support to equities and commodities.

The euro fell around a third of a US cent after the violence-marred vote to as low as $1.1776 in early Asian trade but soon steadied at $1.1800. Liquidity was very thin with Chinese and Sydney markets on holiday.

Spanish police used batons and rubber bullets to thwart an independence vote in Catalonia on Sunday in a show of force that left hundreds injured, according to Catalan officials, and presented Madrid with a huge challenge to calm tensions in the region.


The situation was fluid, with the head of the regional government opening the door to a potential declaration of independence from Spain.

Dealers emphasized there had been no real selling of euros as yet and neither was there any flow to safe havens, with investors reserving judgement.

As a result, the dollar was firmer on the Japanese yen at 112.64 and up a shade against a basket of currencies at 93.182. Gold was quiet at $1,277.00.

Asian shares were in for a better day after upbeat economic data from China, Japan and South Korea augured well for a sustained pickup in global growth.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.24 percent, while E-Mini futures for the S&P 500 rose 0.14 percent.

Australia's main index jumped 1.1 percent, while Japan's Nikkei inched up 0.1 percent after a survey of manufacturers produced the strongest sentiment reading since 2007.

China's manufacturing activity grew at the fastest pace since 2012 in September as factories cranked up output to take advantage of strong demand and high prices.

The official Purchasing Managers' Index (PMI) released on Saturday rose to 52.4 in September, from 51.7 in August.

"This was the first time new orders beat output this year, suggesting a potential 'excess demand' to some extent," wrote analysts at ANZ in a note.

"It also provides upside risk for Q3 GDP and our forecast of 6.7 percent for 2017."

Higher memory chip and steel product sales helped South Korea's exports surge 35 percent year-on-year to a record in September, notching the longest stretch of expansion since 2011.

China's central bank also cut the amount of cash that some banks must hold as reserves for the first time since February 2016 in a bid to encourage more lending to struggling smaller firms and energize its lackluster private sector.

All of which was considered positive for commodity demand. Copper enjoyed its fifth consecutive quarterly gain on expectations of strong demand from top metals consumer China.

Three-month copper rose a further 0.9 percent on Monday to stand at $6,542 a tonne.

In oil markets, Brent boasted its strongest third-quarter price performance since 2004 amid firm global demand and supply restrictions.

Brent for December delivery was off 9 cents in early trade at $56.70 a barrel, while US crude eased 5 cents to $51.62 a barrel.

source: news.abs-cbn.com

Global stocks mostly fall on German election, North Korea worries

NEW YORK - Global stocks mostly fell Monday and the euro tumbled on unease over the German election outcome and the increasingly hostile war of words between Washington and Pyongyang over North Korea's nuclear program.

Investors worried about looming political infighting in Germany after an election that won Angela Merkel a fourth term as chancellor, but also gave a hard-right opposition party parliamentary seats for the first time.

"The markets' initial reaction to the outcome of the German federal election has been negative," said Fawad Razaqzada, an analyst at Forex.com. Merkel's "poor showing" was weighing on the euro.

The euro dropped more than 0.8 percent against the dollar compared with Friday at $1.1846.

Worries about North Korea returned to the forefront after the country's foreign minister accused US President Donald Trump of declaring war and said Pyongyang was ready to defend itself by shooting down US bombers. The White House dismissed the claim as "absurd."

Major equity markets across Europe also were lower by the end of trading although Frankfurt managed a stable finish, partly thanks to the eurozone currency's weakness which tends to favor exporters.

In New York, the broad-based S&P 500 shed 0.2 percent, with the tech-rich Nasdaq sliding a more substantial 0.9 percent. Apple, Amazon, Microsoft and Google-parent Alphabet each lost 1 percent or more as analysts pointed to signs of a shift to sectors that have not done as well in 2017.

But petroleum-linked companies such as ExxonMobil, Halliburton and Schlumberger advanced one percent or more after Turkish President Recep Tayyip Erdogan threatened to block the key oil exports from Iraq's Kurdish region which is holding an independence referendum.

Brent oil prices jumped nearly four percent to $59.02 per barrel, its highest level since July 2015.

KEY FIGURES 2100 GMT (5 a.m. Tuesday in Manila)

New York - DOW: DOWN 0.2 percent at 22,296.09 (close)

New York - S&P 500: DOWN 0.2 percent at 2,496.66 (close)

New York - Nasdaq: DOWN 0.9 percent at 6,370.59 (close)

London - FTSE 100: DOWN 0.1 percent at 7,301.29 points (close)

Frankfurt - DAX 30: FLAT at 12,594.81 (close)

Paris - CAC 40: DOWN 0.3 percent at 5,267.13 (close)

EURO STOXX 50: DOWN 0.1 percent at 3,537.81

Tokyo - Nikkei 225: UP 0.5 percent at 20,397.58 (close)

Hong Kong - Hang Seng: DOWN 1.4 percent at 27,500.34 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,341.55 (close)

Euro/dollar: DOWN at $1.1846 from $1.1947 at 2100 GMT on Friday

Dollar/yen: DOWN at 111.68 yen from 112.01 yen

Pound/dollar: DOWN at $1.3465 from $1.3486

Oil - Brent North Sea: UP $2.16 cents at $59.02 per barrel

Oil - West Texas Intermediate: UP $1.56 at $52.22 per barrel

source: news.abs-cbn.com

Euro and NZ dollar slip on political news, Asia shares track Wall Street

TOKYO - The euro slipped on Monday after German Chancellor Angela Merkel won a fourth term in a weekend election, but faced leading a much less stable coalition in a fractured parliament as support for the far-right party surged.

"The market reacted by selling the euro on the possibility of Merkel running into difficulties in forging a coalition. The euro, however, was already losing support from the European Central Bank's monetary policy theme and appeared to be on its way lower," said Daisuke Karakama, chief market economist at Mizuho Bank in Tokyo.

"The election outcome in Germany showed the country was no longer a special presence in Europe amid growing support for populism and the far right."


The euro was down 0.2 percent at $1.1934, putting more distance between a 2-1/2-year high of $1.2092 reached on Sept. 8, when a European Central Bank policy meeting left currency bulls optimistic the ECB would begin tapering its big stimulus program.

The New Zealand dollar suffered a similar setback, falling as New Zealand's ruling National Party won the largest number votes in Saturday's election but without a ruling majority and now faces a round of coalition building that could last days or weeks.

The New Zealand dollar, the world 11th most-traded currency, was down 0.7 percent at $0.7288.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.2 percent higher.

Japan's Nikkei rose 0.6 percent, Australian shares climbed 0.4 percent and South Korea's KOSPI was flat.

The S&P 500 and Nasdaq closed slightly higher on Friday as worries about the Graham-Cassidy proposal to reform US health insurance eased and investors shrugged off concerns about North Korea.

The pound was on the defensive after British Prime Minister Theresa May failed to give any concrete details for how Britain might retain preferential access to Europe's single market after Brexit.

Sterling was little changed at $1.3506 after losing 0.6 percent on Friday.

Its peers' troubles lifted the dollar, with its index against a basket of 6 major currencies up 0.1 percent at 92.274.

The greenback was up 0.4 percent at 112.455 yen, reversing losses suffered on Friday when the exchange of insults between US President Donald Trump and North Korea heated up, sapping broader risk appetite.

Oil prices extended their gains after surging on Friday, when OPEC and other oil producers said they were clearing a glut that has weighed on crude prices and may wait until January before deciding whether to extend their output curbs beyond the first quarter of 2018.

Brent crude futures was up 0.05 percent at $56.88 a barrel, not far from a 6-1/2-month high of $56.91 set on Friday.

source: news.abs-cbn.com

Ebbing risk appetite grounds Asian stocks, dollar sulks as euro strengthens

SINGAPORE - Asian stocks slipped on Monday as demand for riskier assets ebbed after recent strong gains, while the euro's near-two-year high on the European Central Bank's seeming lack of concern about its strength left the dollar languishing near a 13-month low.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent early on Monday.

Japan's Nikkei dropped 0.8 percent on a stronger yen.

Australian shares retreated 0.2 percent and South Korea's KOSPI was flat.

On Friday, global stocks snapped a 10-day winning streak, taking a breather from a rally that had propelled them to a record high.

Wall Street indexes ended Friday flat to about 0.15 percent lower, as disappointing earnings from General Electric and energy shares weighed.

European shares also closed lower, with Germany's DAX slumping 1.7 percent, dragged lower by the euro's strength.

The euro was trading 0.1 percent higher at $1.1677 early on Monday, just a whisker below the 2-year intra-day high hit on Friday.

ECB President Mario Draghi's comments on Thursday, which conspicuously avoided citing the euro's recent strength as a problem, has emboldened traders convinced the central bank will begin tapering its bond-buying program later this year.

"There has been very little backpedalling on the long euro storyline as dealers continue to place much emphasis on Draghi declining the opportunity to talk down the currency post-ECB minutes," Stephen Innes, head of Asia-Pacific trading at OANDA, wrote in a note.

"And factoring in the expanding US political sinkhole which is weighing on broader USD sentiment, it's unlikely the market has run out of steam," he wrote, adding he expects the euro to test the August 2015 high of $1.1715 "sooner than later."

The dollar index, which tracks the greenback against a basket of trade-weighted peers, extended its run of declines.

It touched 93.839 early on Monday, it's lowest level since June 2016, and was last dealing at 93.844, little changed from Friday's close.

The dollar retreated 0.2 percent to $110.89 yen in its fifth straight session of losses.

In commodities, oil remained in the doldrums after a consultant forecast a rise in OPEC production for July despite the group's pledge to curb output, reviving concerns about oversupply.

Global benchmark Brent slipped 0.1 percent to $48.01 a barrel, after Friday's 2.5 percent tumble.

US crude fell 0.1 percent to $45.71, extending Friday's 2.2 percent slump.

Gold glittered on the dollar's weakness and decline in risk appetite. Spot gold inched up 0.1 percent to $1,256.26 an ounce, building on Friday's 0.8 percent jump, and slightly below a one-month high hit earlier.

source: news.abs-cbn.com

Global Markets: Euro slips on Greece bailout, Italian vote concerns; stocks drift

SINGAPORE - The euro came under pressure on Tuesday after a media report that Greece may forego its next bailout payment if creditors cannot strike a debt relief deal, while Asian stocks were shackled by holidays in some regional markets and the United States and UK.

The common currency slid 0.2 percent to $1.1136 in its third session of declines after a German press report Athens may opt out of its next bailout payment.

Euro zone finance ministers failed to agree with the International Monetary Fund on Greek debt relief or to release new loans to Athens last week but did come close enough to aim to do both at their June meeting.

"The bailout payments are necessary to meet existing debt repayments due in July, so if Greece were to forgo this bailout payment the probability of a default would spike, reopening the discussion around a Grexit from the Euro-zone," said James Woods, global investment analyst at Rivkin in Sydney.

However, Woods cautioned against reading "too much into it" without more details or confirmation, adding that it is unlikely that Greece would opt out of the bailout payment at this stage.

A statement by European Central Bank President Mario Draghi reiterating the need for continued stimulus, and the prospect of early Italian elections also weighed on the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat early on Tuesday.

Japan's Nikkei slipped almost 0.1 percent.

China, Hong Kong and Taiwan markets are closed for holidays on Tuesday.

European blue-chip stocks fell 0.2 percent on Monday, with Italy's banking index sliding 3.4 percent, its biggest loss in nearly four months, after two lenders sought help to cover a capital shortfall.

Sterling retreated 0.2 percent to $1.281 after British Prime Minister Theresa May's lead over the opposition Labour Party dropped to 6 percentage points in the latest poll to show a tightening race since the Manchester bombing and a U-turn over social care plans.

The dollar inched back 0.1 percent to 111.15 yen in early trade.

The dollar index, which tracks the greenback against a basket of trade-weighted peers, advanced 0.2 percent.

In commodities, oil prices climbed in light trade but failed to make up last week's losses as concerns lingered about whether the extension of output cuts by OPEC and other producing countries will be enough to support prices.

US crude futures added 0.4 percent to $50 a barrel.

Gold was steady at $1,266.89 an ounce.

source: news.abs-cbn.com

Euro, shares rally on relief as Macron wins French presidency

Euro hits 6-month high vs dollar, 1-yr high vs yen

TOKYO, May 8 (Reuters) - The euro firmed and U.S. stock futures hit a record high on Monday after centrist Emmanuel Macron comfortably won the French presidential election.

The euro rose to as high as $1.1024, its highest in about six months, before stepping back to $1.0998, flat from late U.S. levels last week.

The common currency hit a one-year high of 124.58 yen and a five-month high of 1.08865 Swiss franc .

"Emmanuel Macron's victory gives markets a much-deserved breather from European politics," said Bill Street, head of investments for Europe, the Middle East and Africa at State Street Global Advisors in London.

"This result, combined with last week's preliminary Greek debt agreement, will be enough to support a short-term relief rally. Looking forward, Macron only offers upside surprises."

The S&P 500 mini futures gained 0.2 percent to hit a record high of 2,403.75 in early trade before giving up the gains to trade flat.

The Nikkei futures pointed to a rise of 1.4 percent in the Nikkei average to 1 1/2-year high when Japanese stock market reopen at 9:00 a.m. (0000GMT) after five-day Golden Week holidays.

"Political risk in Europe has been considered as a major market theme this year. But in the Netherlands (anti-EU party leader Geert) Wilders lost in March. The French election is now out of the way," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

"And in Germany the ruling Christian Democrats are recovering. The political risks in Europe have receded," he said.

Pollsters' projections gave Macron a winning margin of around 65 percent to 35 - a gap wider than the 20 or so percentage points that pre-election surveys had suggested.

The centrist's emphatic victory brought comfort to investors and European allies alike, who had been nervous of the risk of another populist upheaval to follow Britain's vote to quit the EU and Donald Trump's election as U.S. president - neither of which had been predicted by pollsters or bookmakers.

Still, the euro's rise was slight compared with its 2 percent surge after the first-round results on April 23, when polls had been much tighter, when there had been fears that French voters would be left with a choice between two eurosceptic, radical candidates.

Stock markets had a welcome surprise on Friday from solid U.S. employment numbers. Nonfarm payrolls surged by 211,000 last month after a paltry gain of 79,000 in March, and the unemployment rate dropped to 4.4 percent, near a 10-year low and well below the most recent Federal Reserve median forecast for full employment..

The hiring rebound supports the U.S. central bank's contention that the pedestrian 0.7 percent annualised economic growth in the first quarter was likely "transitory," and its optimism that economic activity would expand at a "moderate" pace.

U.S. 10-year Treasury futures dipped on Monday suggesting the 10-year Treasury yield could tick higher from its closing level last week of around 2.35 percent.

Crude oil prices extended their rebound from Friday's five-month lows, as investors bet key producers could extend output cuts beyond an agreed June cut-off.

Saudi Arabia's OPEC governor said on Friday there was an emerging consensus among member and non-member countries on the need to extend the output-control agreement beyond June to help clear the supply glut.

Brent futures traded at $49.54 per barrel, up 44 cents or 0.9 percent. (Reporting by Hideyuki Sano; Additional reporting by Jemima Kelly in London; Editing by Eric Meijer)

source: news.abs-cbn.com

Dollar inches up vs yen, euro holds to modest gains

TOKYO - The dollar inched up against the yen on Tuesday while the euro held to modest gains against the greenback, as the market looked to emerge out of the holiday lull and into the last trading stretch of the year.

The euro was flat at $1.0453 after adding 0.2 percent overnight.

The dollar was up 0.1 percent at 117.230 yen after spending the previous day stuck in a narrow 117.005 to 117.390 range as many major financial markets were closed for the Christmas holidays.

The yen showed little reaction to Japan's inflation data, which saw core consumer prices mark the ninth straight month of annual declines in November.

The US currency had climbed to a 10-month high of 118.660 yen mid-month on the back of the Trump rally, during which it benefited from expectations of higher interest rates to match the incoming president's stimulatory economic policies.

But gravity has caught up with the dollar, which surged more than 10 percent against the yen since Trump's US election win in November.

Some in the market now expect a deeper downward correction to grip the greenback, with the rise in US debt yields slowing and concerns over Trump's protectionist statements taking some shine off the dollar.

"Trump's policies are understood to be conducive to inflation and a stronger currency. But a higher dollar would be a significant setback to the U.S. economy seemingly in the ending stages of an expansion," wrote Makoto Noji, senior strategist at SMBC Nikko Securities.

"Therefore, the Trump administration and the Federal Reserve would have to stick to a cautious monetary policy stance to prevent the dollar from appreciating excessively. We thus expect a very gradual downtrend for dollar/yen."

The dollar index was little changed at 102.970, having pulled back over the last few days from a 14-year high of 103.650 marked a week ago.

The Australian dollar was down 0.2 percent at $0.7181 , inching back towards a seven-month low of $0.7160 plumbed late last week on concerns over China's economic growth.

The New Zealand dollar was also down 0.2 percent, at $0.6882 , paring the gains made the previous day.

source: news.abs-cbn.com

Asia shares hit 1-month peak, bonds bet on ECB support

SYDNEY - Asian shares hopped higher on Thursday after Wall Street strode to new records and bonds rallied on wagers the European Central Bank would extend its asset buying campaign at a policy meeting later in the session.

Australian stocks led the way with a rise of 0.9 in early trade, while Nikkei futures pointed to an opening gain of around 1 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4 percent to a one-month top.

The euro seemed little troubled after Moody's changed its outlook on Italy to negative, warning it may downgrade the credit rating if the country's deteriorating economic and debt outlook was not reversed.

The common currency took the news relatively well, easing just a touch to $1.0756, from a top of $1.7068.

Markets have been surprisingly buoyant in the wake of Italy's "No" vote last weekend, in part on hopes for continued support from the ECB which may widen the type of bonds it buys.

Also helping sentiment were reports Italy would step in to rescue troubled bank Monte dei Paschi, which lifted its shares by 9 percent.

All of which helped drive down yields on European peripheral debt, with buying spilling over to German bunds and US Treasuries. Yields on the 30-year Treasury fell by almost 6 basis points in the biggest daily decline since later August.

That drop nudged the dollar down a touch to 113.63 yen while the dollar index dipped 0.3 percent.

WATCHING WALL ST

Analysts also suspect the ECB may start preparing investors for an eventual tapering of its stimulus, which could underpin the euro even as the Federal Reserve prepares to raise U.S. interest rates next week.

The prospect of higher borrowing costs has certainly not fazed Wall Street, which notched fresh records on expectations the Trump Administration will eventually deliver fiscal stimulus and deregulation.

The Dow ended Wednesday with gains of 1.55 percent, while the S&P 500 climbed 1.32 percent and the Nasdaq 1.14 percent.

Transport stocks had a barnstorming session with the sector jumping 2.5 percent to an all-time intra-day peak.

But biotechnology and pharmaceutical stocks slid after Trump promised in a Time magazine interview that "I'm going to bring down drug prices."

In commodity markets, oil slipped on bearish US petroleum inventory data and doubts that production cuts promised by OPEC and Russia would be deep enough to end a supply overhang.

Brent futures ended Wednesday down 91 cents at $53.02 a barrel. In early trade Thursday, US crude had regained 20 cents of its losses to stand at $49.97.

The story was different in bulk commodities where iron ore and coking coal surged as Chinese demand drove steel prices to their highest since April 2014.

source: news.abs-cbn.com

Euro under the gun, shares hit after Italy votes 'no' on reform

SINGAPORE/SYDNEY - The euro was under the gun on Monday, skidding to a 20-month low after Italian Prime Minister Matteo Renzi said he would resign following a stinging defeat on constitutional reform that could destabilize the country's shaky banking system.

The single currency, which slumped to as low as $1.0505 in early Asian trade after opening at around $1.0685, pulled back up to $1.0562.

The drop to its session low was the sharpest fall since June and opened the way to a retest of the March 2015 trough around $1.0457.

The single currency dropped as much as 2.1 percent to 118.71 yen, but pared some of the losses to trade down 0.9 percent at 120.06 yen.

"The 'no' vote was priced in to a certain extent in advance. So I do not expect a freefall in the euro in the near term," said Minori Uchida, chief currency analyst at the Bank of Tokyo-Mitsubishi.

"But in the long run, this will delay progress in Italy's efforts to get rid of banks' bad debt and is likely to widen the yield spread of German Bunts and the Italian bonds," he added.

The dollar was supported by expectations of a US rate increase this month and gained 0.1 percent to 113.74 yen.

The New Zealand dollar slipped 0.7 percent to $0.0782 after Prime Minister John Key unexpectedly announced his resignation on Monday, saying it was the "right time" to leave politics.

Key, a former foreign exchange dealer who worked at firms including Merrill Lynch, won office for the National Party in 2008, ending the nine-year rule of Labour's Helen Clark.

New Zealand stocks retreated 0.3 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 percent, while E-mini futures for the S&P 500 lost 0.4 percent.

Japan's Nikkei slid 0.6 percent.

Dealers said Italian bonds were set to come under pressure as top-rated U.S. Treasuries and German bunds gained. Futures for US 10-year Treasury notes added 10 ticks.

Investors and Europe's politicians fear victory for the opposition 'No' camp could cause political instability and renewed turmoil for Italy's banking sector, which has been hit by fears over its huge exposure to bad loans built up during years of economic downturn.

Renzi's resignation represents a fresh blow to the European Union, the euro zone's heavily indebted third-largest economy which is struggling to overcome a raft of crises.

Ultimately, the danger is that Italy holds a vote on whether to leave the euro, possibly triggering a break up of the entire bloc.

Analysts at RBCCM argued that, based on what happened in 2012 at the height of the Greek crisis, such a risk could see the euro trade as low as $0.8000.

"It may sound extreme, but if a second euro zone crisis were to hit, with the U.S. dollar at a much stronger starting point, EUR/USD could arguably trade lower still," they wrote.

Markets had earlier taken some encouragement when Austria's far-right presidential candidate was soundly defeated by a pro-European contender, confounding forecasts of a tight election.

The European Central Bank also meets Thursday amid much speculation it will announce a six month extension of its asset buying program and widen the type of bonds it can purchase.

"There has been some speculation that the ECB would step and front load purchases of Italian bonds if markets became unsettled by a 'No' result, so perhaps it is the thoughts of a central bank liquidity sugar pill driving things again," said ANZ economist Jo Masters.

OIL PULLS BACK

Wall Street ended last week on a cautious note, with the Dow off 0.11 percent, while the S&P 500 rose 0.04 percent and the Nasdaq gained 0.09 percent.

While Friday's U.S. payroll report was firm enough to cement expectations of a rate hike by the Federal Reserve this month, a surprise pullback in wages helped bonds pare a little of their recent losses.

In commodity markets, oil ran into profit-taking after boasting its best week in at least five years following OPEC's decision to cut crude output.

Markets are now focused on the implementation and impact of OPEC's first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers.

Brent crude was down 49 cents at $53.97 a barrel, while U.S. crude lost 37 cents to $51.31.

source: news.abs-cbn.com