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Commodities Briefing - Archive | March, 2011

CFTC could impede growth of commodity ETFs

Posted on 29 March 2011 by VRS  |  Email |Print

After the public cried foul over the management of the commodities market, regulators placed position limits on the commodities futures market in an attempt to prevent price manipulation and speculation, but now one prominent commodity fund provider says the limits are hurting the exchange traded fund (ETF) industry.

Last Friday, U.S. Commodity Funds (USCF) said position limits would adversely affect the value of the ETF pools managed by itself and other fund providers, stating “position limits will hamper the ability of USCF and other managers of publicly traded, unlevered, passive commodity funds to prudently meet the investment objectives of the commodity pools that they manage,” reports Christopher Doering for Reuters……………………………………..Full Article: Source

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Nairobi opens exchange for carbon credits

Posted on 29 March 2011 by VRS  |  Email |Print

It is now easier to trade carbon credits resulting from green energy projects and afforestation following the launch a carbon trading facility in Nairobi, the Africa Carbon Exchange. The exchange is the stock market for environment assets, where buyers bid for and buy carbon credit certificates on offer.

“The exchange offers an opportunity for people to earn dividends for using cleaner energy and growing more trees,” said Mr Job Kihumba, the chairman of the exchange and a veteran of the Nairobi Stock Exchange…………………………………….Full Article: Source

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Nasdaq, ICE weigh a price for NYSE

Posted on 29 March 2011 by VRS  |  Email |Print

Nasdaq OMX Group Inc. and IntercontinentalExchange Inc. have continued talks in recent days about a possible joint bid for NYSE Euronext, but the two companies still are working to overcome hurdles, according to people familiar with the matter.

One of the biggest sticking points is how much to bid for NYSE Euronext, which announced in February an agreement to be acquired by Frankfurt’s Deutsche Börse AG. Both ICE and Nasdaq have tentatively agreed that they would need to pay more than $40 a share, or roughly $10.5 billion, for NYSE Euronext, and that the value of the businesses Nasdaq wants represent slightly more than half the value of the company, these people said…………………………………….Full Article: Source

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Sri Lanka to set up a Commodities Exchange

Posted on 29 March 2011 by VRS  |  Email |Print

Sri Lanka’s Securities and Exchange Commission (SEC) on Sunday called for international expressions of interest (EOI) on Commodities Exchanges in newspaper advertisements.
The advertisement said that SEC is calling EOIs to establish and operate a fully fledged, multi-asset class Commodities Exchange. It also said that prospective parties should possess a track record of more than five years in establishing and operating such exchanges. They should also have at least US$ 100 million in shareholders funds/net assets and local parties may submit an EOI with a foreign party…………………………………….Full Article: Source

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Sterling trading at its weakest of 2011

Posted on 29 March 2011 by VRS  |  Email |Print

The pound’s value against other world currencies has fallen to its lowest level since December as expectations of a UK rate rise recede. Sterling’s trade-weighted index – calculated against a basket of the main global currencies - fell as low as 79.1, its weakest since late December.

The pound is being sold on the currency exchanges as pessimism over the UK economy is pushing back expectations for when the Bank of England is likely raise interest rates…………………………………….Full Article: Source

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Commodity boom weighs on policy in Americas

Posted on 28 March 2011 by VRS  |  Email |Print

Mark CarneyCanada says the current commodities boom could last decades and warned developing countries against being too timid with interest rate hikes, while the International Monetary Fund said that much of the Latin American economy is overheating.

Bank of Canada Governor Mark Carney told policymakers from North and South America on Saturday that they should not count on commodities prices coming down any time soon, a position likely to be much discussed at this weekend’s meeting of Western Hemisphere finance officials in snowy Calgary…………………………………….Full Article: Source

Commodity boom could last decades, Carney warns

Posted on 28 March 2011 by VRS  |  Email |Print

Canada’s top central banker said on Saturday the commodity price boom could last for decades and urged his emerging market peers facing inflationary pressures not to delay raising interest rates for too long.

The rise in prices for commodities is partly due to supply effects, though underlying demand remains strong, Bank of Canada governor Mark Carney said during a panel discussion at the Inter-American Development Bank’s annual meeting in Calgary…………………………………….Full Article: Source

Mark Carney says G20 must address major global economic shift

Posted on 28 March 2011 by VRS  |  Email |Print

A major shift is taking place in the global economy, and G20 countries must set policies that will prevent another dire economic crisis from taking place, Canada’s central banker said Saturday.

Bank of Canada Governor Mark Carney said the global “economic centre of gravity” is moving away from advanced industrialized nations and toward emerging economies in regions like Latin America and Asia…………………………………….Full Article: Source

Are commodity prices in a bubble?

Posted on 28 March 2011 by VRS  |  Email |Print

There has been a lot of talk in the financial news lately about whether or not commodities such as gold, silver, wheat, copper, steel, and oil are in bubble territory. It’s interesting that the same people who were so sure back in 2007 that there was no housing bubble are now telling us that commodities are in a bubble.
They point to the fact that the Central Bank of China is taking steps to keep their economy from over-heating. Since China is the engine of global growth, a slowdown there will dampen their demand for these commodities, there is no arguing that…………………………………….Full Article: Source

Iran says OPEC special meeting ‘unnecessary’

Posted on 28 March 2011 by VRS  |  Email |Print

Iran Oil Minister Masoud Mirkazemi sees no reason to call an extraordinary meeting of the Organisation of Petroleum Exporting Country (OPEC), Mehr news agency reported on Saturday.

“An extraordinary meeting of OPEC is not necessary in the current situation,” said Mirkazemi, who is also currently the head of the oil producers’ association……………………………………Full Article: Source

No need for OPEC meeting before June- Qatar oil min

Posted on 28 March 2011 by VRS  |  Email |Print

There is no need for OPEC to hold a meeting before June as the market is in a comfortable position, Qatar’s Energy Minister said on Sunday.

“We can’t see the real need [for a meeting] because the market is in a comfortable situation,” Mohammed Saleh al-Sada said in Doha…………………………………….Full Article: Source

Bull run for gold may be nearing its end - China Central Bank

Posted on 28 March 2011 by VRS  |  Email |Print

Loose monetary policies in developed economies will place more upward pressure on global commodity prices and weigh on the dollar this year, the Chinese central bank said on Friday.

In a report reviewing the performance of global financial markets, the People’s Bank of China also warned of a deepening of the European debt crisis, though its broad view was colored with optimism…………………………………….Full Article: Source

Is the silver price heading for a fall?

Posted on 28 March 2011 by VRS  |  Email |Print

Certainly, the fundamentals are sound. Declining mine production has resulted in a tight supply as demand continues to rise. Investors are still keen on silver because of currency and geopolitical concerns. Holdings in the iShares Silver Trust, the largest silver exchange-traded fund (ETF) in the world, increased by 179 tonnes to 11,140 tonnes in the week to March 24. Gold holdings in ETFs fell over the same time period.

“The psychologically important mark of $40 a troy ounce is meanwhile within a reachable proximity,” Commerzbank said on examining the ETF figures…………………………………….Full Article: Source

Gold and silver rally lacks momentum

Posted on 28 March 2011 by VRS  |  Email |Print

The precious metals had a great week, so why is the momentum of these moves so lacking in strength? Speculators who can move prices seem not yet to be convinced that gold stocks will continue zooming into ever higher ground. Is there peace in the oil fields or something?
Nothing lately has affected the long term indicators or ratings for gold. Before checking out the indicators what’s the latest with the long term P&F chart? ……………………………………Full Article: Source

Looking beyond gold for alpha

Posted on 28 March 2011 by VRS  |  Email |Print

As Comex gold hit a fresh record high, Societe Generale commodities skeptic Dylan Grice — of the long-term return on commodities is zero fame — wrote a stirring paean to gold in his latest research report.

Marked by his characteristic erudition, with references to gold’s use as a hedge in the world of antiquity, Grice’s report is worth reading and thinking about…………………………………….Full Article: Source

What’s driving the gold price onwards and upwards?

Posted on 28 March 2011 by VRS  |  Email |Print

Gold attracts tremendous emotion from people and it has always done so. It manages to bring out the extremes in investors, reporters, governments. It’s either hated or loved. Copper isn’t, nickel isn’t and coal isn’t.

You can call it a commodity, a barbarous relic, money or a wealth preserver. Whatever title you use, someone will react…………………………………….Full Article: Source

World’s top copper miner sees strong metal prices continuing for some time

Posted on 28 March 2011 by VRS  |  Email |Print

Global No. 1 copper producer Chile’s Codelco said Friday its 2010 output dipped but should be steady this year, and expects strong Chinese demand, Japan’s recovery after a natural disaster, as well as new uses to stoke demand.

Codelco said profits surged 47 percent to $5.8 billion in 2010, with a rise in copper prices to record highs more than compensating for a 0.8 percent fall in production from 2009 to 1.688 million tonnes…………………………………….Full Article: Source

Metals up ahead of Japan rebuild

Posted on 28 March 2011 by VRS  |  Email |Print

Metals traders became very excited when they heard the latest estimate of Japan’s reconstruction cost coming in at $US308 billion ($300bn). Up went the base metals on the assumption, presumably, that to get started you just need to write a few cheques.

Not quite, we fear. There’s that small matter of public debt representing more than 200 per cent of Japan’s GDP…………………………………….Full Article: Source

Regulators eyeing ETFs

Posted on 28 March 2011 by VRS  |  Email |Print

Exchange-traded fund (ETF) investment does not come without risks and the products are increasingly attracting regulatory scrutiny, according to the Reserve Bank of Australia (RBA).

“The ETF industry has grown strongly in a relatively short period of time, with the industry attracting greater attention as it grows in size,” RBA analysts Mitch Kosev and Thomas Williams said in a report…………………………………….Full Article: Source

India: Commexes turnover may double in 3 yrs

Posted on 28 March 2011 by VRS  |  Email |Print

Commodities exchanges industry in India will likely double its turnover in just three years, if the country’s biggest commodity exchange by market share Multi Commodity Exchange of India (MCX) is to be believed.

MCX on Friday celebrated the industry reaching a milestone of R100-lakh crore turnover. “You ain’t seen nothing yet. We are only just scratching the surface,” said Lamon Rutten, managing director and CEO, MCX. He added that if prices continue on the current path, the commodities exchanges will achieve the R200-trillion mark by 2014. “2010-2020 will be the decade of commodity derivatives and exchange-traded businesses,” said Rutten…………………………………….Full Article: Source

Mumbai no more the favorite commodity destination

Posted on 28 March 2011 by VRS  |  Email |Print

As commodity broking is gaining its foothold in India, the hub of all activities - Maharasthra, has put a speed breaker in the form of hike in stamp duty. So much so that many commodity broking firms are now seriously thinking of venturing out of Maharashtra after they got a jerker in the form of Maharashtra government’s proposal to have a phenomenal 400 per cent hike in stamp duty on commodity transactions.

This means the clients will have to pay Rs 500 instead of Rs 100 they pay now for every crore. Currently clients shell out Rs 200 exchange fee apart from the taxes structure and the existing stamp duty…………………………………….Full Article: Source

Kenya: Supply hurdles hit commodity exchange plan

Posted on 28 March 2011 by VRS  |  Email |Print

While Kenya is consistently working on efforts to attract foreign investors and increase value generated from agriculture, establishing a thriving commodity exchange remains on the back burner.

Among other things, the state of affairs means investors eyeing or are already in the sector are limited in terms of growing and processing crops. They also cannot participate a cereals futures market…………………………………….Full Article: Source

Yen bulls undauted by intervention threat

Posted on 28 March 2011 by VRS  |  Email |Print

Yen bulls have been undaunted by the global effort to push down the Japanese currency, increasing their bets recently that the yen will strengthen.

To many market observers, this may seem counterintuitive, given the risks of another huge coordinated intervention that could weaken the yen and whipsaw those betting it will appreciate…………………………………….Full Article: Source

As global carbon-trading market stumbles, investors think locally

Posted on 28 March 2011 by VRS  |  Email |Print

With the two biggest economies blocking progress on emissions, global temperatures last year matched the record highs of 2005 while droughts and flooding wrecked harvests from Karachi to Rio de Janeiro. Today, the price of carbon languishes at less than half the level Deutsche Bank says is needed to meet the U.N.’s aims for controlling global warming.
Officials and investors say local initiatives such as Nuwal’s may offer the best chance of both slowing emissions and making money from the process…………………………………….Full Article: Source

Can commodities continue their climb?

Posted on 25 March 2011 by VRS  |  Email |Print

You don’t have to scour the front pages for long to find a bullish commodity story. The bombing of Libya and political unrest in the broader Middle East and North Africa region increases fears over oil-supply security and pushes up the price of crude.
Oil topped $106 a barrel Thursday before pulling back, with crude for May delivery settling down 15 cents a barrel at $105.60 on the New York Mercantile Exchange. The futures contract closed Wednesday at its highest level since Sept. 26, 2008……………………………………….Full Article: Source

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The surge in commodities isn’t just about demand, it’s about the Fed too

Posted on 25 March 2011 by VRS  |  Email |Print

The “Fed didn’t do it crowd” has been floating this chart around the web. It purports to prove that commodities inflation is due to industrial demand and not to Fed money printing. But they left something out. “What’s that?” you ask. Why, they left out Fed money printing of course!
I don’t have the data for world industrial production. I will assume that the above chart is truthful and that the correlation it shows is accurate. In fact, I am sure that it is accurate. The only problem is that it attributes cause and effect while ignoring the root cause……………………………………….Full Article: Source

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Commodity prices and world demand

Posted on 25 March 2011 by VRS  |  Email |Print

All of the sudden it looks like commodities and world industrial production have little to no correlation. What’s the conclusion? Don’t believe everything you see – especially when it comes from an outfit whose job it is to protect Fed policy at any cost.
Of course, this doesn’t mean that all of the conclusions based on the original chart are wrong. Indeed, demand really is having an important impact on prices……………………………………….Full Article: Source

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Commodities desks set for resurgent 2011

Posted on 25 March 2011 by VRS  |  Email |Print

Senior traders at Morgan Stanley predict that revenues from commodities will rebound this year by 50% – a shot in the arm for a host of investment banks that piled into the sector before a difficult 2010.
Glenn Schorr, a senior economist at Nomura in New York, recently travelled to London and met with Robert Rooney, head of interest rate currency and credit for Europe, the Middle East and Africa at Morgan Stanley, and Colin Bryce, the banks head of institutional sales and trading in Emea and its co-head of global commodities……………………………………….Full Article: Source

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Economies in fear of oil price rise fuelled by turmoil

Posted on 25 March 2011 by VRS  |  Email |Print

Threatened by Middle East unrest, reduced fuel supply could have very serious implications. Can surging oil prices imperil global economic recovery? That’s a question increasingly the focus of debate among market strategists. Continued instability in oil-producing states saw Brent crude hit $116 this week, an increase of over 20 per cent since January and well over double the levels recorded just two years ago.
The spike saw oil prices close more than three standard deviations above their 50-day moving average recently, something unseen since oil began its multiyear bull run in 1999……………………………………….Full Article: Source

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Oil - near $106 and rising

Posted on 25 March 2011 by VRS  |  Email |Print

Crude oil prices moved above $106 a barrel again Thursday before retreating, as a confluence of war, natural disasters and Japan’s nuclear problems unnerved investors.
The benchmark U.S. contract, West Texas Intermediate, dropped 15 cents, or 0.55%, to settle at $105.60 a barrel for May delivery. In early trading, the price peaked at $106.69……………………………………….Full Article: Source

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OPEC supply falls to six-month low on Libya, Oil Movements says

Posted on 25 March 2011 by VRS  |  Email |Print

The Organization of Petroleum Exporting Countries will cut oil shipments to their lowest level since October as civil war halts exports from Libya, according to tanker-tracker Oil Movements.
Shipments will fall to 23.03 million barrels a day in the four weeks to April 9, down 1.8 percent from 23.46 million in the period to March 12, the consultant said………………………………………Full Article: Source

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Base metals may remain bullish

Posted on 25 March 2011 by VRS  |  Email |Print

Base metals like aluminium, zinc, nickel and copper, which started to inch upwards, may continue to remain bullish in the long term as market feels that demand from Japan will start flowing in shortly for reconstructing the country.
Along with Japan, a steady flow of demand for copper is expected to come from Brazil, which is building infrastructure for the 2014 World Cup and 2016 Olympic Games……………………………………….Full Article: Source

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Aluminium, copper, PGMS to perform over next 3 years - RBS

Posted on 25 March 2011 by VRS  |  Email |Print

The latest Commodity Companion from the team at RBS has recently been released. This is a hefty tome, redolent with figures and forecasts, covers not only the base and precious metals, but important steel components and the major elements of the energy complex.
The study highlights how many commodities in 2010 enjoyed their strongest consumption growth in decades as a result of the synchronised recovery in world growth……………………………………….Full Article: Source

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Central Asia joins hunt for rare earth metals

Posted on 25 March 2011 by VRS  |  Email |Print

Kazakhstan plans to join the race to supply rare earth metals to a global market squeezed by Chinese export cuts when it launches a project with Japanese trader Sumitomo Corp to treat uranium tailings in 2012.
Summit Atom Rare Earth Co, co-owned by Kazakh state uranium miner Kazatomprom, plans to start producing 1,500 tonnes a year of rare earth oxides, Kazatomprom said in a written reply to questions……………………………………….Full Article: Source

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China: Iron ore monopoly may end by 2015

Posted on 25 March 2011 by VRS  |  Email |Print

The monopoly held on China’s iron ore supply by a small number of international companies will be “thoroughly” broken up by 2015 as increased investment in the sector boosts global production, according to an expert in China’s mining industry.
“The surging price of iron ore since 2003 has attracted a huge amount of investment in the sector, and there will soon be a concentrated release of capacity, breaking the monopoly a few big companies hold,” Wu Rongqing, chief engineer of the industry development department at the China Mining Association, said………………………………………Full Article: Source

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Emerging markets catch rise in commodities as Rio, Billiton up 1pct

Posted on 25 March 2011 by VRS  |  Email |Print

Emerging markets ETFs are outperforming as Asian stocks ended generally higher Thursday powered by resource-sector companies. South Korea’s Kospi rose 1.2%, Taiwan’s Taiex finished ahead by 0.4% and India’s Sensex improved by 0.7%.
Across emerging markets, metals and commodities-related stocks are being supported by rising gold, silver and copper prices……………………………………….Full Article: Source

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Playing the commodities boom with base metal ETFs

Posted on 25 March 2011 by VRS  |  Email |Print

Figuring out the best investment plays on the recent commodity boom we’ve been seeing isn’t an open and shut case. There are many different factors to consider; apart from the “what” (what metals should I be investing in?), the “why” (are metals a safe bet with all the volatility surrounding them?) is just as important.
Think of the “tail” risks, as some analysts call them, that the world has on its plate right now: first the massive European credit downgrades of the national economies of Greece/Portugal/Ireland etc., then the domino effect of Middle Eastern revolt, then the horrific quake and tsunami in Japan……………………………………….Full Article: Source

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Precious metals records as ETF buys ‘noticeable by absence’

Posted on 25 March 2011 by VRS  |  Email |Print

Gold hit its second new record high on the trot at the London Gold Fix on Thursday morning, hitting $1441.25 per ounce for US investors as the dollar held flat on the forex market, and US crude oil rose.
New York’s stock markets opened the day 0.5% higher. Silver bullion jumped to fresh 31-year highs above $37.85 per ounce. The ratio of gold to silver prices “is now convincingly through the 1998 weekly low” notes the London dealing team at Japanese conglomerate Mitsui……………………………………….Full Article: Source

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Hong Kong Exchanges may introduce commodity products, says Li

Posted on 25 March 2011 by VRS  |  Email |Print

Hong Kong Exchanges & Clearing Ltd. may introduce products based on the raw materials that China consumes the most, said Chief Executive Officer Charles Li.
“We’re talking about providing solutions for people that use commodities,” said Li in a speech today to the Hong Kong Investment Funds Association. “China needs to develop those capabilities. It needs to have those pricing inflows in the global scheme in all the major areas where China is a big consumer.”………………………………………Full Article: Source

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ICEX sees robust iron ore futures on Japan demand

Posted on 25 March 2011 by VRS  |  Email |Print

Increased demand from Japan will lead to “robust growth” in iron ore futures contracts at the Indian Commodity Exchange (ICEX), its chief executive said on Thursday, spurring volumes by up to 20 percent in 2011/12.
Rajnikant Patel, ICEX managing director and chief executive, told Reuters that as Japan rebuilds its disaster-hit infrastructure, Indian hedgers supplying to that country would drive up iron ore futures volumes……………………………………….Full Article: Source

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NYSE, CBOE may form swap-trading platforms spurred by Dodd-Frank rules

Posted on 25 March 2011 by VRS  |  Email |Print

CBOE Holdings Inc. (CBOE) and NYSE Euronext may create venues for derivatives that now trade over the counter to capitalize on proposed rules designed to bring more transparency to the $583 trillion market.
The exchange operators may form swap-trading platforms for privately negotiated derivatives that the government plans to move onto regulated trading systems or exchanges that will provide public data about prices and transactions, according to interviews with company executives over the last week……………………………………….Full Article: Source

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Kenyans soft-launch new carbon exchange

Posted on 25 March 2011 by VRS  |  Email |Print

As Europe’s carbon registries slowly reopen after the more vulnerable among them were hacked in January, a new exchange – the African Carbon Exchange (ACX) – was soft-launched here on Thursday.
Like any soft launch, this one is still testing its wings. The trading platform, for example, was demonstrated for reporters but won’t be open for trading until security concerns are worked out – a point that may be moot since it has only one registered member, Carbon Self………………………………………..Full Article: Source

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Further uncertainty for US carbon trading

Posted on 25 March 2011 by VRS  |  Email |Print

Californian carbon cap-and-trade scheme suffers legal set-back on road to 2012 start date. The California Air Resources Board (ARB), the body responsible for designing California’s carbon cap-and-trade scheme, has said it will appeal last week’s ruling by the San Francisco Superior Court that threatens to delay the start of the scheme.
The San Francisco Superior Court ruled on Friday that the ARB did not properly research alternatives to cap-and-trade……………………………………….Full Article: Source

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Dollar on the ropes as roiled markets regain some calm

Posted on 25 March 2011 by VRS  |  Email |Print

The dollar hovered near a 15-month low against a basket of currencies and was in sight of a 29-year trough against the Australian dollar as a bounce in equities suggested that risk appetite was on the mend.
The euro dipped briefly after Standard & Poor’s downgraded Portugal’s credit ratings by two notches to BBB and warned it could cut it again by one notch as early as next week……………………………………….Full Article: Source

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Sterling falls to 2011 low vs currency basket

Posted on 25 March 2011 by VRS  |  Email |Print

Sterling fell to its lowest this year against a basket of currencies on Thursday, driven by sharp falls against a firmer euro in the wake of weak UK retail sales data and a warning by Moody’s on risks to economic growth.
Trade-weighted sterling =GBP fell as low as 79.6, its lowest since December 31, 2010……………………………………….Full Article: Source

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Questions on Brazil’s currency moves creates uncertainty for international investors

Posted on 25 March 2011 by VRS  |  Email |Print

Lingering speculation that Brazil could introduce more capital controls or taxes to hold down its currency is creating some uncertainty for international investors trying to read the government’s next moves in foreign exchange markets.
As part of its effort to prevent the real from appreciating too much, Brazilian policymakers in October imposed taxes on types of foreign investment flows. With the real still stronger than it was a year ago, investors and analysts see the possibility of fresh moves like a tax on so-called global bonds, which are launched overseas by Brazilian companies and denominated in hard currencies like the dollar……………………………………….Full Article: Source

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Asian currencies to appreciate this year

Posted on 25 March 2011 by VRS  |  Email |Print

Emerging economies in Asia have seen their currencies appreciate this year on strong economic growth, a trend that analysts say is likely to continue.
To cope with extremely high levels of inflation in Asia, investors are expecting Asian banks to raise interest rates - a move that may attract more debt capital, leading to appreciation in the region’s currencies……………………………………….Full Article: Source

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Big investors bullish on commodities, Barclays survey finds

Posted on 24 March 2011 by VRS  |  Email |Print

Investors remain bullish about investing in commodities, with more than 80% either maintaining or increasing their investment in commodities over the last 12 months, Barclays Capital said in its annual survey of institutional investors Wednesday.
Crude oil was the top pick among investors as the commodity likely to perform the strongest in 2011, while natural gas was voted the weakest. Gold, a favorite in previous years, was voted the second commodity most likely to perform the worst in 2011, according to the survey……………………………………….Full Article: Source

Oil, grains seen top 2011 commodities picks: Barclays Capital

Posted on 24 March 2011 by VRS  |  Email |Print

Commodity investors will favour oil and grains and snub gold this year as food inflation and concerns about unrest in the Middle East outweigh sovereign debt problems, a Barclays Capital annual investor survey showed.
The survey, which the bank has been publishing for the past seven years and which compiles views of over 100 commodity investors, showed that over 80 percent of respondents expect direct investment in commodities to be USD 60-USD 70 billion or more in 2011……………………………………….Full Article: Source

High commodity prices are here to stay

Posted on 24 March 2011 by VRS  |  Email |Print

Investors need not look to Asia or other emerging markets for higher returns these days. Record price levels are being recorded daily in the commodity markets, and although most experts agree that current trends are unsustainable, the recent pullback in prices does not even qualify as a “correction” from most market perspectives.
The simple fact is that there are not enough raw materials, whether hard or soft commodity by nature, to meet increasing global demand. Since major contract prices are tied to the value of the U.S. Dollar, a major portion of the recent run up can also be attributed to the weakening of our national currency……………………………………….Full Article: Source

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