Gold Posts Longest Slump in Seven Weeks as Dollar Extends Rally

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Gold futures fell, posting the longest slump in seven weeks, as the dollars rally to a five-year high eroded the appeal of the precious metal as an alternative investment.

Futures approached a four-year low as the greenback climbed against a basket of 10 currencies after Japan expanded monetary stimulus, while the Federal Reserve moved closer closer to its first interest-rate increase in eight years.

On Oct. 31, gold capped a consecutive monthly decline, the first this year, after touching $1,160.50 an ounce, the lowest since July 2010. Higher interest rates reduce the metals allure because the commodity generally offers investors returns only through price gains, while a stronger dollar typically cuts demand for a store of value. Societe Generale SA and Goldman Sachs Group Inc. are among banks expecting further losses for gold.

Gold futures for December delivery dropped 0.2 percent to settle at $1,169.80 at 1:47 p.m. on the Comex in New York after touching $1,161. The metal declined for the fourth straight session, the longest slump since Sept. 12.

Source : Bloomberg

Dollar Reaches 7-Year High Versus Yen on Policy Split; Real Down

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The dollar rose to the strongest in almost seven years against the yen as the Federal Reserve moves toward interest-rate increases while the Bank of Japan adds to monetary stimulus.

The U.S. currency appreciated versus all of its 16 major counterparts as a measure of manufacturing rose more than estimated, before a report forecast to show employers added workers in the worlds largest economy. The euro fell to a two-year low against the greenback before the European Central Bank meets this week. Australias dollar had its biggest decline in more than two weeks as building approvals tumbled and Chinese manufacturing slowed. Brazils real slid.

The dollar rose 1.4 percent to 113.94 yen at 1:26 p.m. New York time and reached 114.22 yen, the highest since December 2007. The U.S. currency gained 0.4 percent to $1.2479 per euro after appreciating to $1.2440, the strongest level since August 2012. The yen slipped 1.1 percent to 142.20 per euro. Japans financial markets were shut for a holiday.

A JPMorgan Chase & Co. gauge of global currency volatility climbed to 8.30 percent, its highest level since Oct. 16.

Source : Bloomberg

Most U.S. Stocks Fall as Energy Companies Slump With Oil Prices

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U.S. stocks fell, after a monthly advance sent benchmark indexes to records, as energy companies dropped with the price of oil after Saudi Arabia said it will cut prices of crude sent to the U.S.

The Standard & Poors 500 Index slipped less than 0.1 percent to 2,017.66 at 4 p.m. in New York as about five U.S. stocks fell for every four that rose. The Dow Jones Industrial Average lost 24.34 points, or 0.1 percent, to 17,366.18. The Nasdaq Composite Index climbed 0.2 percent to the highest level since March 2000. Trading in S&P 500 companies was 13 percent below the 30-day average for this time of the day.

The S&P 500 has rebounded more than 8 percent from a six-month low on Oct. 15, fueled by better-than-forecast economic growth and improving earnings reports. The gain has pushed the index to trade at 16.8 times the members projected profit, near its highest multiple since 2009.

Both the S&P 500 and the Dow closed at all-time highs last week amid optimism the Bank of Japans stimulus will fill some of the gap left by the end of Federal Reserve bond buying.

Source : Bloomberg

U.S. Stocks Rise With Dollar, Treasuries Drop on Growth Optimism

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U.S. stocks rose with the dollar, while Treasuries fell amid better-than-forecast corporate earnings and data signaling stronger economies from China to Europe. Copper and oil advanced.

The Standard & Poors 500 Index increased 0.7 percent at 9:31 a.m. in New York. Caterpillar Inc. jumped 3.5 percent after earnings beat analysts projections. Ten-year Treasury yields rose four basis points to 2.26 percent. Japans currency slid against the dollar for a sixth day. Copper climbed 0.5 percent. Crude gained 1.1 percent after a person with knowledge of Saudi Arabias oil policy said the kingdom cut supply in September.

Fewer Americans filed applications for unemployment benefits over the past month than at any time in 14 years, according to Labor Department data. Earnings from Caterpillar to General Motors Co. surpassed analysts estimates. Separate data showed manufacturing in the euro area unexpectedly revived in October while a gauge of Chinese factory activity rose, exceeding analysts estimates.

Source : Bloomberg

European Stocks Decline as Holcim, PostNL Retreat on Earnings

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European stocks fell, after this years biggest weekly rally, as investors weighed disappointing earnings from PostNL NV and Holcim Ltd.

The Stoxx Europe 600 Index slid 0.8 percent to 334.25 at the close of trading as Italian utilities declined. The Stoxx 600 gained 2.9 percent last week as the Bank of Japan unexpectedly boosted its stimulus. The benchmark measure has advanced 7.8 percent from this years low on Oct. 16 and trades at 15.5 times the projected earnings of its members, near the highest valuation since 2009.

Holcim dropped 2.6 percent after the cement maker posted third-quarter net income and revenue that missed analysts projections as fluctuations in emerging-market currencies hurt results.

PostNL tumbled 13 percent to an almost 14-month low after reporting third-quarter net income of 12 million euros ($15 million), less than half the 26 million-euro estimate of analysts surveyed by Bloomberg.

Source : Bloomberg