Reuters: US Dollar Report: GLOBAL MARKETS-Dollar steadies, shares firm as fresh gains eyed

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

GLOBAL MARKETS-Dollar steadies, shares firm as fresh gains eyed Apr 11th 2013, 08:00 Thu Apr 11, 2013 4:00am EDT * European shares hold near one-week highs * Yen remains under pressure from BOJ stimulus * China credit grows, supports economic recovery * Korean tensions underpin gold By Richard Hubbard LONDON, April 11 (Reuters) - The dollar hovered near a four-year high against the yen and a rally in world shares slowed on Thursday though markets remain buoyed by Japan's aggressive monetary easing and signs of a recovery in China. News that the U.S. Federal Reserve may scale back its massive bond purchases later this year has failed to dampen sentiment in share markets that saw the S&P 500 share index hit a record high on Wednesday; the Fed outlook has, however, also supported the dollar "No doubt the new all-time highs seen in the S&P 500 will attract new retail money into the market. There's nothing like being under-invested and seeing the word 'new highs' on the front page of each newspaper," IG Chief Market Strategist Chris Weston wrote. Data on Thursday showed Chinese banks made 1.06 trillion yuan ($171.2 billion) of new local currency loans in March, adding to evidence of an economic recovery being fuelled by credit. The numbers followed Wednesday's trade figures, which signalled a recovery in domestic demand. The fresh loans number "shows that there is ample funding in the Chinese economy to support growth and is positive for sentiment", said Dariusz Kowalczyk, senior economist for ex-Japan Asia at Credit Agricole CIB in Hong Kong. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8 percent after the data, helping lift the world equity index 0.25 percent, a day after posted its second best gain of the year. European shares steadied near one-week highs after posting their biggest daily rise in three months on Wednesday, with the FTSE Eurofirst 300 index little changed in early trade. Across the region, London's FTSE 100, the Paris CAC-40 and Frankfurt's DAX were all around 0.1 percent above previous closing levels. The dollar rose as high as 99.88 yen in the currency markets, staying just below the key 100 yen level as traders await the expiration of large options contracts which have generated demand from banks to buy the yen and sell dollars. Once these expire the dollar is expected to make a decisive break higher having already gained more than 7 percent on the yen since the BoJ last week unveiled a radical stimulus programme that even eclipsed the Fed's own massive plan. In the debt market German bond futures were slightly lower before an Italian bond auction which is expected to see good demand from investors hunting for better yields. Italy, which is still in search of a new government after February's inconclusive elections, will offer 5.5-7.5 billion euros of a new three-year bond, a 15-year bond and a five-year floating rate note later on Thursday. Gold bounced on Thursday from its weakest level in almost a week as rising tension on the Korean peninsula stirred some safe-haven buying in Asia, though gains are likely to be capped by uncertainty over the Federal Reserve's stimulus programme. Heavy outflows from gold exchange-traded funds also weighed on the metal, in addition to the rally in world stock markets and Cyprus's plan to sell excess bullion reserves to help finance its part of its bailout. Gold hit its lowest since April 5 at $1,553.10 an ounce at one point before settling around $1,557.50, down 1.75 percent. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions