Japan Stocks Gain With Dollar After U.S. Records as Oil Retreats

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The dollar gained against most peers, while Japanese stocks increased after records in New York amid global central-bank efforts to prop up economic growth. Oil retreated with Norways krone.

Japans Topix index climbed 0.7 percent by 9:11 a.m. in Tokyo, as the yen slipped 0.1 percent to 118.37. The MSCI Asia Pacific Index climbed 0.2 percent while a 1.9 percent drop by BHP Billiton Ltd. dragged Australias S&P/ASX 200 Index lower. Futures on the Standard & Poors 500 Index were little changed after the U.S. gauge and the Dow Jones Industrial Average closed at records. Norways currency weakened 0.3 percent while oil in New York slipped 0.2 percent.

Japanese markets resume after a holiday during which Chinas central bank cut interest rates. While gross domestic product growth in the three months through Sept. 30 is likely to be revised lower. A final reading on German third-quarter economic expansion is due after an unexpected increase in business confidence amid European Central Bank President Mario Draghis efforts to win support for more measures.

The S&P 500 has rebounded 11 percent from a six-month low last month. The gauge had plunged as much as 7.4 percent as concern grew Europe was leading a global growth slowdown. It has closed above its five-day moving average for 27 consecutive trading sessions, the longest such streak in history, according to Jonathan Krinsky, chief market technician at MKM Holdings LLC.

Source: Bloomberg

U.S. Stocks Extend Records, Europe Bonds Rise on Stimulus Bets

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U.S. stocks extended all-time highs and European bonds gained amid speculation the European Central Bank will buy government debt to support growth. Natural gas led commodities lower and oil retreated.

The Standard & Poors 500 Index rose 0.3 percent to an all-time high at 4 p.m. in New York. The Dow Jones Industrial Average climbed less than 0.1 percent to extend a record, while the Russell 2000 Index of small companies rallied 1.2 percent to a July high. The Stoxx Europe 600 Index closed little changed as gains by banks offset a slump in resource producers. The yield on Spains 10-year bond fell four basis points to a record 1.97 percent. Natural gas slid the most since February, and crude oil fell before an OPEC meeting.

The S&P 500 advanced 1.2 percent last week as data signaled the U.S. economy is improving, ECB President Mario Draghi pledged to raise inflation as fast as possible and China unexpectedly cut interest rates. A gauge of German business confidence unexpectedly rose for the first time in seven months, a report showed today. Preliminary data from Markit Economics showed the U.S. services industries expanded at a slower pace than estimated this month. OPEC meets this week to determine production levels.

Source: Bloomberg

Europe Stocks End Little Changed as Miners Drop While Banks Rise

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European lenders pushed stocks to a two-month high, even as they pared gains in the final hour of trading amid a decline in miners and oil and gas companies.

The Stoxx Europe 600 Index added 0.1 percent to 345.72 at the close of trading in London, after earlier jumping as much as 0.5 percent. The benchmark index gained 2.9 percent last week as Mario Draghi said the ECB needs to accelerate inflation and may broaden its asset-purchase program, while China cut key interest rates for the first time since 2012. Futures on the Euro Stoxx 50 Index rose 0.5 percent at 5:04 p.m. in London.

Banks in the Stoxx 600 advanced 1.3 percent as a group, contributing the most to the gain. Banco Santander SA added 2.5 percent and Societe Generale SA rose 2.1 percent. Spains IBEX 35 Index climbed 1.2 percent for the second-biggest increase among 18 western-European markets.

Source: Bloomberg

Gold retains gains, firm above $1,200 on China rate cut

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Gold traded firmly above $1,200 an ounce on Monday, retaining gains from the previous session on hopes that a surprise rate cut in China would boost demand for bullion in the top consumer.

Spot gold was steady at $1,202.20 an ounce by 0028 GMT, after gaining 0.6 percent on Friday.

Gold got a boost from short-covering after China cut interest rates unexpectedly on Friday, stepping up efforts to support the world's second-biggest economy as it heads towards its slowest expansion in nearly a quarter of a century, saddled under a mountain of debt.

China's leadership and central bank are ready to cut interest rates again and also loosen lending restrictions, concerned that falling prices could trigger a surge in debt defaults, business failures and job losses, said sources involved in policy-making.

Bullion also got support from comments from European Central Bank President Mario Draghi that opened the door for more drastic measures to prevent the euro zone from sliding into deflation.

Gold is seen as a hedge against inflation and slowing economy.

Reuters : Reuters