Reserve Bank Governor Glenn Stevens kept the benchmark cash rate at an all time low of 2.5% yesterday but warned that the Australian dollar may become materially lower. The RBA statement said, the Australian dollar, while below its levels earlier in the year, is still uncomfortably high. A lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy. The comments saw the Australian dollar lose almost 0.5% instantaneously against the U.S. dollar and saw the currency lose ground against all its counterparts before a recovery overnight. Steven A. Cohen of SAC Partners had once coveted the reputation of legendary investor George Soros. Yesterday, the announcement was made that SAC would plead guilty to charges of insider trading, close its fund to outsiders and pay a $1.8 billion fund. While Cohen appears to have avoided a jail term and may continue to trade his estimated $9 billion in personal wealth, his reputation is in tatters. Six former SAC managers and analysts have pleaded guilty to insider trading. U.S equity markets were marginally lower as they continue to hover around record highs with investors sidelined in the prelude to key data releases surrounding economic growth and employment. Markets were negatively impacted by the European Union cutting growth forecasts for the euro zone for next year and raising unemployment estimates. The S&P 500 has lost 0.13% to 1,765.57. Earlier in Europe, bourses were lower with the DAX losing 0.31% while the FTSE fell 0.25%. Commodity markets continue to lose ground with the major indexes losing more than 0.3%. WTI crude fell to four month lows as inventories in the U.S.look likely to gain for the seventh consecutive week. WTI is down 1.3% to $93.40. Precious metals have also lost ground as investors remained sidelined. Gold lost 0.3% to $1,311 while silver was flat at $21.70. Copper gained 0.3%. Agricultural commodities were mostly lower with cocoa bucking the trend by rising 3% .
Posted on: Tue, 05 Nov 2013 23:10:46 +0000
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