Gold Swings Near Highest Level Since September Before ECB Meets

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Gold fluctuated near a four-month high before European Central Bank policy makers meet to discuss introducing new stimulus as holdings in the largest exchange-traded product expanded the most since 2010.

Bullion for immediate delivery rose and fell at least 0.2 percent, and traded 0.3 percent lower at $1,277.11 an ounce at 9:05 a.m. in Singapore, according to Bloomberg generic pricing. The metal earlier climbed to $1,283, the highest level since Sept. 2, extending the biggest weekly gain since August 2013 as Switzerland™s surprise currency move on Jan. 15 roiled markets and boosted haven demand.

Gold™s rally sent the metal™s 14-day relative-strength index above the level of 70 that signals to some investors that prices may reverse. The Swiss National Bank ended the franc™s cap against the euro before a meeting on Jan. 22 which may see the ECB announce asset purchases as Greece prepares for a Jan. 25 election. Assets in the SPDR Gold Trust rose 1.9 percent to 730.89 metric tons on Jan. 16, the biggest gain since May 2010.

Source : Bloomberg

Euro 1% From 11-Year Low Before ECB; Franc Holds Historic Rally

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The euro was within 1 percent of an 11-year low against the dollar amid speculation the European Central Bank will announce additional stimulus when it meets this week.

The shared currency is down this month against all major counterparts after the Swiss National Bank™s move to abandon the franc™s cap versus the euro spurred investor expectations the ECB will announce government bond purchases, also known as quantitative easing. The Swiss currency was little changed after rallying last week versus every peer. The dollar held an advance versus the yen after U.S. consumer confidence surged.

The euro was little changed at $1.1560 as of 9:53 a.m. in Tokyo after reaching $1.1460 on Jan. 16, the weakest since November 2003. The 19-nation currency traded at 99.36 Swiss centimes after plunging 17 percent last week. The dollar was at 117.52 yen after jumping 1.2 percent on Friday.

Source: Bloomberg

China Stocks Plunge on Margin Accounts Halt; Aussie Miners Rise

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Mainland Chinese shares plunged after three of the nation™s biggest brokerages were stopped from adding margin-trading accounts. Australian mining shares rose after U.S. oil capped its first weekly advance since November and copper climbed in London.

The Shanghai Composite Index tumbled 4.9 percent by 10:34 a.m. in Tokyo, as brokerages plummeted. BHP Billiton Ltd., the world™s biggest mining company, was the biggest support to the MSCI Asia Pacific Index. Futures on the Standard & Poor™s 500 Index were 0.2 percent higher in holiday trade. West Texas Intermediate oil slipped 0.8 percent and copper in London rose after its biggest two-day gain since September 2013. The Swiss franc slipped 0.4 percent against the dollar.

Chinese regulators are tightening control of margin investing amid concern that a six-month, 63 percent stock surge may lead to instability. Stocks in the U.S., where markets are closed for Martin Luther King Day, jumped Jan. 16 as a rebound in oil tempered fallout from the Swiss National Bank abandoning a cap on the franc and lower earnings at Goldman Sachs Group Inc. The European Central Bank and the Bank of Japan meet on policy this week while Greece holds an election Jan. 25 that may see an anti-austerity party take power.

Source : Bloomberg

China’s Stock-Index Futures Plunge on Margin-Trading Suspensions

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China™s stock-index futures tumbled after the nation™s securities regulator took measures to rein in margin trading at three of the nation™s biggest brokerages.

Futures on the CSI 300 Index expiring in February, the most active contract, slumped 5.7 percent to 3,474.80 as of 9:18 a.m. local time. The regulator suspended Citic Securities Co., Haitong Securities Co. and Guotai Junan Securities Co. from adding margin-finance and securities lending accounts for three months following rule violations.

The Shanghai Composite Index climbed 1.2 percent to 3,376.50 on Jan. 16. Hong Kong™s Hang Seng China Enterprises Index fell 0.9 percent to 12,076.74.

The Shanghai gauge advanced 2.8 percent last week, a 10th week of gains that™s the longest winning streak since May 2007, after credit growth expanded and speculation grew the central bank will cut reserve-requirement ratios.

The CSI 300 Index rose 0.9. The Hang Seng Index lost 1 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added less than 0.1 percent in New York.

Source: Bloomberg

Asia Stocks Rise After Oil Jumps, U.S. Consumer Confidence Grows

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Asian stocks rose, led by materials companies, after oil rebounded and U.S. consumer confidence jumped to an 11-year high.

The MSCI Asia Pacific Index gained 0.6 percent to 138.20 as of 9:01 a.m. in Tokyo, before markets opened in China and Hong Kong. Futures on the Standard & Poor™s 500 Index slid 0.1 percent after the gauge climbed 1.3 percent on Friday as energy shares rallied with Brent crude surging the most in two years. U.S. markets are closed Monday for a holiday.

The MSCI Asia Pacific Index traded at 13.4 times the estimated earnings of its constituent companies as of its close on Friday, when it capped a second week of declines. That compares with 16.6 times for the S&P 500.

Japan™s Topix index gained 0.6 percent. Australia™s S&P/ASX 200 Index rose 1 percent. New Zealand™s NZX 50 Index advanced 0.3 percent. South Korea™s Kospi index added 0.7 percent.

Source : Bloomberg