Dollar Tempers Best Annual Gain Since 2000 During Holiday Trade

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The dollar weakened for a second day against the yen, following a five-day advance, amid speculation its recent climb was too rapid.

The U.S. currency is headed for gains against all of its 16 major counterparts this year for the first time since 2000 as the Federal Reserve moves to raise interest rates next year for the first time since 2006. Australia™s dollar traded within a cent of its post-float low to its New Zealand peer.

The dollar declined 0.2 percent to 120.32 yen at 9:48 a.m. in Tokyo from yesterday, when it fell 0.2 percent. It reached 120.83 yen on Dec. 23, the highest since Dec. 9, and gained 3.7 percent during the five-day advance.

The U.S. currency was little changed at $1.2192 per euro after weakening 0.2 percent yesterday. The yen gained 0.1 percent to 146.82 per euro.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, has risen 11 percent this year, set for the biggest annual gain in data starting in December 2004.

The gauge was little changed at 1,1130.64 after falling 0.3 percent yesterday, a day after its 14-day relative-strength index reached 71, above the 70 level some traders see as a signal an asset may have risen too far, too fast.

Australia™s dollar traded at NZ$1.0488 after reaching NZ$1.0477 on Dec. 23. That was the lowest level since December 2005, when it recorded the post-float low of NZ$1.0432.

Source : Bloomberg

Gold Falls for Third Straight Day on U.S. Interest-Rate Outlook

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Gold futures declined for the third straight day as gains in the U.S. economy bolstered the case for higher interest rates.

Holdings in the SPDR Gold Trust, the world™s biggest exchange-traded fund backed by the metal, tumbled 1.6 percent yesterday to 712.9 metric tons, the biggest drop since June 2013. That marked the lowest since September 2008. Futures fell 8.4 percent in the third quarter as the U.S. economy gathered momentum.

Gold slumped last month to a four-year low as the dollar™s rally against a basket of 10 currencies to a five-year high and a surge in equities cut demand for the metal as a store of value. Bullion headed for a consecutive annual loss for the first time since 1998. Jobless claims in the U.S. dropped to the fewest since early November, government data showed today.

Gold futures for February delivery fell 0.4 percent to close at $1,173.50 an ounce at 12:36 p.m. on the Comex in New York, the lowest settlement since Nov. 13. Aggregate trading was 67 percent below the 100-day average for this time, according to data compiled by Bloomberg. In the previous two days, the price declined 1.5 percent.

Silver futures for March delivery dropped 0.4 percent to $15.71 an ounce, the lowest settlement this month. In 2014, silver has tumbled 19 percent this year, and gold fell 2.4 percent.

Source : Bloomberg

China Stock Futures Rise on Bets Recent Losses are Excessive

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China™s stock-index futures rose amid speculation the benchmark gauge™s biggest two-day loss in 18 months was excessive.

Futures on the CSI 300 Index expiring in January, the most active contract, gained 0.9 percent to 3,277.40 as of 9:16 a.m. China Communications Construction Co. and other infrastructure companies may move after the government said it will boost financial support for domestic companies to develop business overseas. Energy producers may drop on lower crude oil prices.

The Shanghai Composite Index dropped 2 percent to close at 2,972.53 yesterday. It has lost 5 percent over the past two days on speculation the government will take actions to cool rapid gains in equity prices. Hong Kong™s stock market is closed today and tomorrow for the Christmas holidays. The Hang Seng China Enterprises Index fell 1 percent to 11,558.02.

The CSI 300 Index declined 2.8 percent. The Hang Seng Index gained 0.1 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, retreated 0.6 percent in New York.

Source : Bloomberg

Tokyo Stocks Open 0.28% Lower

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Tokyo stocks opened 0.28 percent lower on Thursday as the yen's fall against the dollar took a breather.

The Nikkei 225 index at the Tokyo Stock Exchange was down 49.39 points at 17,804.84 at the start.

Trading is expected to be thin due to the Christmas holiday.

In New York the Dow Jones Industrial Average edged to a fresh record in a holiday-shortened session Wednesday, one day after topping 18,000 points for the first time ever, closing up 0.03 percent at 18,030.21.

The dollar was at 120.43 yen early Thursday, compared with 120.44 yen in New York Wednesday afternoon.

The euro bought $1.2190 and 146.74 yen against $1.2202 and 146.97 yen in US trade.

Bucking the overall downtrend in Tokyo, Sumitomo Mitsui Financial Group gained 1.0 percent to 4,402.5 yen in the first few minutes of trade.

The rise came after news reports that the group's core banking unit would announce as early as Thursday a deal with Citigroup to purchase the New York-based company's retail business in Japan.

Source : AFP

U.S. Stocks Little Changed as Indexes Erase Gain in Last Minutes

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U.S. stocks were little changed as indexes erased gains in the final minutes of trading, after a five-day rally in equities that sent the Dow Jones Industrial Average above 18,000 for the first time.

The Standard & Poor™s 500 Index fell less than 1 point to 0.2 percent to 2,081.92 at 1 p.m. in New York. Trading in S&P 500 companies was 38 percent below the 30-day average for this time of day. U.S. equity markets closed at 1 p.m. for Christmas Eve, and will be shut tomorrow for the holiday.

Source : Bloomberg