Analytics, News, and Forecasts for CFD Markets: currency news — 29-02-2012.

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29.02.2012

19:38

American focus: the dollar rallied against the euro and yen

The dollar rallied against the euro and yen after comments from Federal Reserve Chairman Ben S. Bernanke reduced speculation the central bank will provide more monetary stimulus. The dollar erased earlier losses after Bernanke said there are “positive developments” in the labor market, adding that “the job market remains far from normal.” Bernanke said that “in light of the somewhat different signals received recently from the labor market than from indicators of final demand and production, however, it will be especially important to evaluate incoming information to assess the underlying pace of economic recovery.”

The euro weakened earlier after the European Central Bank awarded 529.5 billion euros ($712 billion) in a second round of three-year loans to banks, increasing the supply of euros. The 17-nation euro declined versus all but one of its 16 major counterparts as the ECB auction of three-year loans surpassed the 470 billion euros forecast by economists. The Frankfurt-based central bank said it will lend the funds to 800 financial institutions. In its first three-year refinancing operation in December, 523 banks borrowed 489 billion euros.

19:14

European stocks close:

European stocks were little changed, erasing earlier gains, after U.S. Federal Reserve Chairman Ben S. Bernanke failed to signal further monetary easing in a testimony to the Congress.

Bernanke said today that keeping monetary stimulus is warranted even as jobless claims fall and rising oil prices may push inflation up temporarily in the world’s largest economy.

Policy makers judge that “sustaining a highly accommodative stance for monetary policy is consistent with promoting both objectives” of the Fed for stable prices and maximum employment, Bernanke said in a testimony to the House Financial Services Committee in Washington.

The ECB said today it will lend 800 financial institutions 529.5 billion euros ($712.2 billion) for 1,092 days. Banks borrowed 489 billion euros in the first three-year operation in December.

National benchmark indexes declined in 10 of the 18 western-European markets today. Germany’s DAX fell 0.5 percent, France’s CAC was little changed and the U.K.’s FTSE 100 lost 1 percent.

Hochtief tumbled 5 percent to 52.41 euros after it said it won’t pay a dividend for 2011 and that the pretax profit for last year will be “slightly below” the amount in 2010.

Holcim gained 1.2 percent to 59 Swiss francs. Full-year sales of 20.7 billion Swiss francs ($23.1 billion) beat expectations for a revenue of 20.4 billion francs. Earnings before interest, taxes, depreciation and amortization of 3.96 billion francs topped the forecast for 3.85 billion francs.

Erste Group Bank AG advanced 4.3 percent, the most since Feb. 2, to 18.84 euros as fourth-quarter net income surpassed analyst projections.

18:53

Fed's Plosser: “Can do more to improve Fed monetary politics transparency”

FFR assumptions a useful picture of assumed policy views

18:07

U.S. stocks were little changed

U.S. stocks were little changed as Federal Reserve Chairman Ben S. Bernanke damped speculation about additional stimulus, offsetting better-than-estimated economic data.
Stocks fell as Bernanke gave no signal that further policy easing is under consideration. While describing “positive developments” in the labor market, “the job market remains far from normal,” Bernanke said during the first day of his semi- annual monetary policy report to Congress. He said a recent increase in gasoline prices “is likely to push up inflation temporarily while reducing consumers’ purchasing power.”
Earlier today, stocks gained as data showed the U.S. economy expanded more than forecast in the fourth quarter and business activity accelerated. Benchmark gauges also rallied earlier as euro-area banks tapped the European Central Bank for a record amount of three-year cash in an operation that may boost bond and equity markets.

Dow 12,993.12 -12.00 -0.09%, Nasdaq 2,983.05 -3.71 -0.12%, S&P 500 1,370.87 -1.31 -0.10%

Raw material and energy shares retreated as the S&P GSCI Index of commodities lost 0.7 percent, falling a third day. Newmont Mining slid 3.7 percent to $59.71. Alcoa Inc. declined 1 percent to $10.27. Halliburton Co. lost 1.4 percent to $37.17.
First Solar tumbled 10 percent, the biggest decline in the S&P 500, to $32.75. The company also reduced its 2012 revenue forecast to $3.5 billion to $3.8 billion, compared with a December forecast of $3.7 billion to $4 billion.
Apple rose 1.5 percent to $543.30, gaining for a fifth day. Apple investors are anticipating a sales boost from the company’s latest iPad tablet computer, due on March 7.
News Corp. gained 2.2 percent to $20.25. The company’s Deputy Chief Operating Officer James Murdoch stepped down as executive chairman of the News International U.K. publishing unit following his move to the company’s headquarters in New York. James Murdoch was named News Corp.’s deputy chief operating officer in March 2011, four months before reports of voice-mail interception by tabloid journalists in the U.K. prompted News Corp. to drop its bid for British Sky Broadcasting Group Plc.

17:32

Oil fell for a third day

Oil fell for a third day after government data showed U.S. inventories rose to the highest level in more than five months and on expectations that the Federal Reserve won’t take new action to bolster the economy.

Prices fell as much as 1.2 percent after the Energy Department said supplies rose 4.16 million barrels to 344.9 million last week. Fed Chairman Ben S. Bernanke, in prepared testimony for Congress, gave no signal that the central bank is considering more measures to spur the economy and called the inflation outlook is “subdued.”

Gasoline inventories fell 1.6 million barrels to 229.9 million last week, the Energy Department said. Stockpiles were forecast to slip 425,000 barrels. Gasoline demand dropped 3.1 percent to 8.36 million barrels a day.

Distillate supplies, which include heating oil and diesel, fell 2.07 million barrels to 141.4 million. Stockpiles were forecast to fall 750,000 barrels.

Oil gained earlier as the the U.S. economy expanded more than forecast in the fourth quarter. Gross domestic product climbed at a revised 3 percent annual rate, the most since the second quarter of 2010, the Commerce Department reported.

Crude oil for April delivery fell to $104.84 a barrel on the New York Mercantile Exchange. Oil traded at $106.60 a barrel before release of the inventory report at 10:30 a.m.

Brent oil for April settlement dropped 47 cents, or 0.4 percent, to $121.08 a barrel on the London-based ICE Futures Europe exchange.

16:42

EU Juncker: “Need to stimulate growth in Greece”

Must ensure sucessful Greek prog with surveillance.
Have to consider 2nd Greek plan adopted in principle.
Doesn't think Ireland to need extra support from ESM.
Some think gradual ESM payments too timid and should be paid in 2 tranches, not 5.
ESM capacity to be reviewed, but not tomorrow. Will decide on capacity later in March.

16:33

Gold has fallen off in the background of Bernanke comments

Gold fell sharply after a speech by Fed B. Bernanke, who said the presence of improvements on the U.S. labor market, thereby reducing the probability of QE3 in the short term.

During his speech to the Committee on Financial Services U.S. House of Representatives Fed chief said that the preservation of incentives in the U.S. economy is sound, despite some decline in unemployment. According to him, the labor market have been positive changes, but the situation is still far from normal. In addition, Bernanke said that the rise in oil prices may lead to temporary increases in inflation and reduced purchasing power of citizens, recalling that the outcome of the January FOMC meeting were projected, according to which the rate of inflation in the United States will be constrained in long term after 2012.

March futures price of gold on COMEX today fell to 1719.3 dollars per ounce.