Singapore Stock Market Updates On 06/10/10

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SL

TSL

TP

Remarks

Market Recap by MF Global

U.S. Stocks Rally to 5-month Highs on Recovery Hopes (Marketwatch) – U.S. stocks rallied on Tuesday, with the Dow industrials closing within striking distance of 11,000 and at its highest level since May, as U.S. economic data and Japan’s bid to spur its economy energized Wall Street. “We’re not going to have a double dip, but slow growth. And with interest rates so low, equities is one of the few places to generate returns,” said Jerry Swank, president of Swank Capital. “The search for yield is going to flow to the equity markets,” said Swank. The Dow Jones Industrial Average climbed 193.45 points to end at 10,944.72, its highest close since May 3. The blue-chip index, which last closed above 11,000 also on May 3, was lifted by all but one of its 30 components, led by a 3.4% gain in shares of Boeing.

Oil Hits 5-Month Peak on Dollar, French Strike (Reuters) – Oil prices hit a five-month peak near $83 a barrel on Tuesday, boosted by a slumping dollar after a Bank of Japan rate cut and by tanker disruptions because of a French strike and a closed Texan shipping route. The BOJ pledged to pump more funds into the economy and keep interest rates near zero, pressuring the dollar and boosting equities on expectations other central banks will also act to stimulate their economies. A weaker dollar can raise oil prices because it makes dollar-denominated oil less expensive for consumers using other currencies and lowers the value of dollars paid to producers. U.S. crude for November delivery rose $1.35 or 1.66 percent to $82.82 per barrel, the highest settlement since closing at $86.19 on May 3. The $82.99 intraday peak was the highest since May 4’s $86.24

Gold Extends Rally to Record as Dollar Sags, Japan Cuts Rate (Bloomberg) – Gold futures jumped to a record $1,340.60 an ounce as the dollar sagged, boosting demand for precious metals as alternative assets. Silver advanced to a 30-year high. The greenback fell to the lowest level since January against a basket of six currencies. Federal Reserve Chairman Ben S. Bernanke said
yesterday the U.S. central bank may buy more debt to help the economy. The Bank of Japan today pledged to keep its benchmark interest rate at “virtually zero” percent. Since Sept. 14, gold has risen to a record in 12 sessions. Gold futures for December delivery rose $23.50, or 1.8 percent, to settle at $1,340.30 at 1:41 p.m. on the Comex in New York. It was the biggest gain for a most-active contract since Sept. 14.

U.S. Dollar Slides as BoJ Spurs Risk-Taking (Reuters) – The U.S. dollar fell to an eight-month low against the euro on Tuesday as a surprise easing by the Bank of Japan rekindled risk appetite and prompted buying of currencies and assets with higher returns. In volatile trading, the yen strengthened despite a cut in the BoJ’s overnight rate target to 0-0.1%from 0.1%, pushing the dollar near levels that triggered the Bank of Japan’s September 15 intervention. The BoJ also said it would create a pool of funds to buy assets in the face of evidence a stronger yen was hurting Japan’s economy. “The BoJ took further steps to provide stimulus to the economy and that has given a boost to risk appetite. As a result, we have seen the dollar come off a lot against the euro,” said Eric Viloria, senior currency strategist at Forex.com in New York.