Cut in oil price can help to inflation down

Brent crude fell as much as $5 to $98.74 a barrel, the lowest intraday price since February 8. It recovered to $103.14 by 7:05 a.m. EDT in volatile trade, but was still nearly $25 off an April peak above $127.

US crude fell $1.35 to $79.96 after touching $75.71, its lowest since September 2010. US crude s discount to Brent reached its deepest level ever at $23.76.

The decrease in oil price will help to bring inflation down as Pakistan’s oil imports stands about 35 percent of its total import.

According to market experts, after cut in US rating Federal Reserve can increase interest rate as 19 percent of Pakistan export goes to US.
JS Research says that US will not stop US aid but it will delay it.

Asian stock markets rise after Fed’s stimulus plan

Asian stock markets climbed Friday as investors took heart from the Federal Reserve’s plan to buy $600 billion in government bonds in an effort to inject life into the faltering US economy.

Japan’s benchmark Nikkei 225 stock index jumped 204.94 points, or 2.2 percent, to 9,364.92 despite pressure on exporters as the dollar fell below the 81 yen level.

South Korea’s Kospi added 0.3 percent to 1,942.08 and Australia’s S&P/ASX 200 was up 0.4 percent at 4,815.00. Hong Kong’s Hang Seng index climbed 0.9 percent to 24,363.54. China’s Shanghai Composite Index rose 0.6 percent to 3,047.78.

Elsewhere, markets in Malaysia, Singapore and Taiwan advanced while New Zealand’s index fell.

Asian stock markets rise after Fed’s stimulus plan

Asian stock markets climbed Friday as investors took heart from the Federal Reserve’s plan to buy $600 billion in government bonds in an effort to inject life into the faltering US economy.
Japan’s benchmark Nikkei 225 stock index jumped 204.94 points, or 2.2 percent, to 9,364.92 despite pressure on exporters as the dollar fell below the 81 yen level.
South Korea’s Kospi added 0.3 percent to 1,942.08 and Australia’s S&P/ASX 200 was up 0.4 percent at 4,815.00. Hong Kong’s Hang Seng index climbed 0.9 percent to 24,363.54. China’s Shanghai Composite Index rose 0.6 percent to 3,047.78.
Elsewhere, markets in Malaysia, Singapore and Taiwan advanced while New Zealand’s index fell.

Oil, gold recover on dollar weakness

US crude oil futures ended more than one per cent higher on Friday, on late short-covering ahead of the weekend and positive German business sentiment data lifting prices, as the dollar index seesawed ahead of a G20 finance ministers’ decision on currencies.
Widespread expectations that the US Federal Reserve will launch a new round of monetary easing measures as early as next month to help boost the pace of recovery, continued to stoke bullish sentiment. Markets were eyeing a Group of 20 finance ministers meeting in South Korea.
On the New York Mercantile Exchange, crude for December delivery settled at $81.69 a barrel, up $1.13, or 1.4 per cent.
It traded from $80.41 to $81.78, an inside day, in which the day’s high and low are within the previous day’s range. It followed a 2 per cent price slump on Thursday. Total volume for all crude futures was around 332,000 lots, with still more than an hour until the last post-settlement trade, the lowest since June 28, when the volume was 375,005. ICE December Brent crude settled higher, and ended the week up 51 cents, or 1.9 per cent.Brent’s premium against US WTI ended at $1.27, the same level on Thursday. For the week, the premium fell 10 cents. Gold steadied on Friday after its first weekly decline in nearly three months, with bullion investors keeping an eye on any statements from the G20 meeting.

Oil, gold recover on dollar weakness

US crude oil futures ended more than one per cent higher on Friday, on late short-covering ahead of the weekend and positive German business sentiment data lifting prices, as the dollar index seesawed ahead of a G20 finance ministers’ decision on currencies.
Widespread expectations that the US Federal Reserve will launch a new round of monetary easing measures as early as next month to help boost the pace of recovery, continued to stoke bullish sentiment. Markets were eyeing a Group of 20 finance ministers meeting in South Korea.
On the New York Mercantile Exchange, crude for December delivery settled at $81.69 a barrel, up $1.13, or 1.4 per cent.
It traded from $80.41 to $81.78, an inside day, in which the day’s high and low are within the previous day’s range. It followed a 2 per cent price slump on Thursday. Total volume for all crude futures was around 332,000 lots, with still more than an hour until the last post-settlement trade, the lowest since June 28, when the volume was 375,005. ICE December Brent crude settled higher, and ended the week up 51 cents, or 1.9 per cent.Brent’s premium against US WTI ended at $1.27, the same level on Thursday. For the week, the premium fell 10 cents. Gold steadied on Friday after its first weekly decline in nearly three months, with bullion investors keeping an eye on any statements from the G20 meeting.

Asian stocks surge on BOJ move; Gold at record high

Asian shares rallied on Wednesday a day after the Bank of Japan unexpectedly cut interest rates and pledged to buy assets worth $60 billion to keep the economy from faltering.
Global markets also scaled higher on hopes that the Federal Reserve and the Bank of England will take similar steps, while gold prices hit a new record high, touching $1,344.20 per ounce on bolstered optimism.
Japans Nikkei jumped 1.3%. Hong Kongs Hang Seng, which briefly rose above the 23,000 mark, was up 1.3% and Australias ASX advanced 1.5% led by resources sector. Indias Sensex gained 0.9%. China remained shut for holiday.

Gold hits new record at $1,300; silver at 30-year high

SINGAPORE: Gold powered to an all-time high at $1,300 an ounce on Monday as worries about the health of the global economy spurred buying, with top consumer India also defying high prices during the festive season.

Silver, often considered the poor man’s gold, rose to a 30-year high as investors chased cheaper alternative. The metal has gained nearly 30 percent this year.

Spot gold added $3.25 an ounce at $1,298.85 by 0658 GMT, after rising as high as $1,300. Gold has gained on a weaker dollar and economic uncertainty after the Federal Reserve raised expectations of new measures to stimulate growth.

“We may see a bit of short-term profit taking, I would say. Of course on a longer-term basis, there will still be an upward trend for gold prices,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.

“I think by the end of this year, we

Japan intervenes for 1st time in six years to cap yen

TOKYO: Japan stepped into the currency market on Wednesday for the first time in six years, selling yen to stem a rise that is threatening a fragile economic recovery.

The dollar extended its gains after intermittent yen selling and was up 2 percent on the day and nearly two yen above a 15-year low. But it was unclear whether Prime Minister Naoto Kan’s government had the stomach for a prolonged campaign similar to Japan’s last foray into foreign exchange markets in 2003-2004.

Finance Minister Yoshihiko Noda confirmed the intervention, saying Tokyo was also communicating with authorities overseas but indicating that Japan acted alone.

U.S. officials at the Federal Reserve and the Treasury declined to comment immediately about Tokyo’s action.

Noda would not say whether the authorities were buying dollars in the first intervention since March 2004, but

US crude falls below $74 on economy fears

SINGAPORE: U.S. crude futures fell below $74 on Tuesday, extending losses for a second day, as expectations of higher crude inventories fed fears that a slowdown in global economic growth was hitting demand.

Investors took profit on oil after equities slid on skepticism that governments can boost growth, while the yen clung near a 15-year high against the dollar.

U.S. President Barack Obama”s Monday remarks on additional steps to generate jobs growth and a rise in U.S. consumer spending in July failed to lift oil and equities markets.

U.S. crude prices are meeting considerable resistance above $75 due to concerns about the economy and high oil inventories, Stefan Graber, Credit Suisse”s commodities analyst, said in a note. “For now, we expect further consolidation around $75.”

U.S. crude for October delivery fell 84 cents, or 1.12 percent, to $73.86 a barrel by 0439 GMT, after halting three days of gains on Monday.

ICE Brent for October fell 68 cents to $75.92 a barrel.

Oil fundamentals in the United States, the world”s largest consumer, remained weak as stockpiles rose for the second time in a row last week on higher imports, a British news agency preliminary poll of analysts ahead of weekly inventory reports showed.

Oil turns lower in Asia; stays above $75

SINGAPORE: Oil prices turned lower in Asian trade Monday on profit-taking and as investors realised that the US economic recovery remained weak despite the Federal Reserve chief”s reassurances, analysts said.

New York”s main contract, light sweet crude for delivery in October, was down seven cents to 75.10 dollars a barrel, and Brent North Sea crude for delivery in October dipped nine cents to 76.56 dollars.

Both contracts had posted gains in morning trade, extending gains from Friday following reassurances by Federal Reserve chairman Ben Bernanke on the US economy, but failed to gain traction.

“There was some profit-taking because Ben Bernanke”s reassurances are just simply words,” said Victor Shum, senior principal for energy consultants Purvin and Gertz in Singapore.

“The reality is that the US economic outlook hasn”t changed… What Bernanke managed to do with his words was to momentarily stop a lot of the bearish sentiment in the market,” he told media.

Shum said recent economic data coming out of the United States points to a weak economic recovery in the world”s biggest economy.

In a highly anticipated speech, Bernanke said prospects for a US growth pick-up appeared to “remain in place” despite a sharp cutback in the pace of second-quarter economic expansion.

Bernanke added that the Fed would take more “unconventional” steps to boost growth if the economic outlook “deteriorated significantly”.

Shum said a rally in Asian stocks helped minimise the dip in oil prices.

“In the absence of significant news events, the oil market looks to equities for guidance,” he said.

“This has added more volatility to oil because equities are influenced by daily economic data.”

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