Dollar Above Three-Week Low as Fischer Supports December Liftoff

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The dollar held above a three-week low against major peers after Federal Reserve Vice Chairman Stanley Fischer became the latest policy maker to back the case for a year-end interest-rate increase.

The U.S. currency rose versus Australia’s dollar as Fischer echoed comments by William C. Dudley, Dennis Lockhart and John Williams, who have all said since a disappointing September payrolls report that they still see rates being raised this year. Two-year Treasury yields climbed last week by the most since August. The Aussie retreated after gaining last week by the most since December 2011.

The Bloomberg Dollar Spot Index, which measures the greenback’s performance against a basket of 10 major counterparts, was little changed at 1,191.09 as of 8:51 a.m. in Singapore from Friday, when it touched 1,190.72, the lowest since Sept. 18. The U.S. currency slid 0.1 percent to $1.1373 per euro. It bought 120.10 yen from 120.27. Against Australia’s dollar, it strengthened 0.1 percent to 73.30 U.S. cents.

Treasury two-year yields climbed six basis points in the five days to Oct. 9, the biggest weekly advance since August. At 0.64 percent, the yield is back near the level it traded at before an Oct. 2 report showed U.S. employers added fewer jobs in September than analysts had forecast.

Source : Bloomberg

Gold Holds Near Seven-Week High as U.S. Rate Debate Holds Focus

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Gold held near the highest level in seven weeks as investors tried to figure out which way the Federal Reserve will move on interest rates, with Vice Chairman Stanley Fischer adding to the debate by hinting at a rise this year.

Bullion for immediate delivery gained 0.1 percent to $1,157.40 an ounce at 9:30 a.m. in Singapore, according to Bloomberg generic pricing. Prices rose to $1,159.78 in intraday trading on Friday, the highest since Aug. 24, and climbed 1.6 percent over the week.

Gold’s risen for three of the past four weeks, rebounding from a five-year low in July, amid speculation that the Fed may refrain from tightening until next year. Fischer on Sunday said that the U.S. economy may be strong enough to merit an increase by year end, while cautioning that policy makers are monitoring slower job growth and international developments in deciding the timing. Odds of a Fed liftoff in 2015 are below 40 percent, futures data show.

Source: Bloomberg

China Shanghai Composite Index Poised to Open Higher

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China’s benchmark stock index is set to advance at the start of trading.

The Shanghai Composite Index climbed ahead of the open, adding 0.3 percent to 3,193.54 at 9:25 a.m. local time. The gauge has risen 4.3 percent since financial markets resumed trading on Thursday. Consumer companies may advance after restaurant, cinema and travel sales surged during the “Golden Week” national holiday.

The CSI 300 Index rose 1.3 percent. Hong Kong’s Hang Seng China Enterprises Index advanced 1.2 percent. The Hang Seng Index gained 0.5 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 0.5 percent in New York.

China will release export and consumer-price data on Tuesday and Wednesday respectively. Overseas shipments probably dropped 6 percent last month from a year earlier, while the inflation rate slowed to 1.8 percent, according to the median estimates of Bloomberg surveys.

Sales at restaurants and retailers amounted to 1.082 trillion yuan during the Oct. 1 to 7 holiday, according to the Ministry of Commerce. That was an 11 percent jump from a year earlier.

The Shanghai Composite has rebounded 8.7 percent since an August low after a rout that erased almost $5 trillion. The index is valued at 12.3 times 12-month projected earnings, compared with the five-year average multiple of 10.3, according to data compiled by Bloomberg.

Source: Bloomberg          

Asia Stocks Climb After Biggest Weekly Rally Since December 2011

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Asian stocks rose after posting their steepest weekly advance since December 2011, with technology and industrial shares leading gains.

The MSCI Asia Pacific Excluding Japan Index climbed 0.2 percent to 425.16 as of 9:32 a.m. in Hong Kong, with Tokyo markets closed for a holiday. The measure jumped 6.5 percent last week. The comeback in global equities after their worst quarter in four years is being underpinned by sentiment surrounding central banks, which are showing little desire to pull back on stimulus.

South Korea’s Kospi index added 0.1 percent. New Zealand’s S&P/NZX 50 Index climbed 0.7 percent. Hong Kong’s Hang Seng Index rallied 0.5 percent, while China’s Shanghai Composite Index increased 0.3 percent. Australia’s S&P/ASX 200 Index slipped 0.7 percent, with energy shares leading losses after surging last week.

Odds of a Fed liftoff this year have fallen to below 50 percent, with traders predicting a 62 percent chance of an increase by March.

Source: Bloomberg                        

S&P 500 Index Caps Best Week This Year While Energy Rally Pauses

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U.S. stocks rose, with the Standard & Poor’s 500 Index posting its strongest weekly gain this year, as equities continued to rebound from their worst quarter since 2011.

Shares advanced Friday without the help of energy and raw-material companies, the two best-performing groups so far this month, as energy snapped its longest winning streak in six years. Apple Inc. added 2.4 percent to boost technology shares. Alcoa slumped 6.8 percent to weigh on commodity related companies.

The S&P 500 added 0.1 percent to 2,014.97 at 4 p.m. in New York, up 3.3 percent for the week, the most since December. A measure of volatility extended a streak of declines to the longest in four years.

Energy companies in the benchmark index fell after yesterday stretching an advance to an eighth day, the longest in six years. The group is poised for the best weekly climb in 2015, up more than 7.5 percent. Materials and industrials marked their strongest week since December 2011.

Source: Bloomberg