TREASURIES-Prices sag as Wall St rallies, corporate debt deals drag reuters/article/2014/12/02/markets-usa-bonds-idUSL2N0TM1O820141202 NEW YORK, Dec 2 (Reuters) - U.S. Treasuries fell on Tuesday, with prices pressured by a Wall Street rally and institutional investors readying for a $6 billion corporate bond deal from leading retailer Amazon. U.S. equities pivoted from losses on Monday and were boosted by merger deals. Key indices were up about 0.5 percent in late New York trading on Tuesday. Today was primarily about the rebound in equity prices, said Ian Lyngen, senior government bond strategist at CRT Capital in Stamford, Connecticut. Big corporate bond deals also weighed on Treasuries, Lyngen said. Treasuries ended a six-session price rally on Monday, when Medtronic Inc priced $17 billion of senior notes. There is a lot of corporate issuance thats being hedged and thats applying a lot of pressure, said Sean Murphy, a Treasuries trader at Societe Generale in New York. Hedging against expected exposure to corporate deals can at times pressure bonds, as investors conduct trades known as rate-locking that involves selling Treasuries to offset coming purchases of corporate bonds. According to IFR, a unit of Thomson Reuters, Bank of America and other banks working for Amazon were expected to price on Tuesday a five-part senior unsecured offering for the online retailer worth $6 billion. Yields on 30-year Treasuries topped 3 percent after data showed U.S. construction spending in October was healthier than forecast. The bond was last off 1-2/32 and yielded 2.9984 percent, according to Reuters data. The 10-year Treasury was last off 17-1/2 to yield 2.2799 percent. FOREX-Dollar gains on commodity-linked currencies reuters/article/2014/12/02/markets-forex-idUSL2N0TM21D20141202 NEW YORK, Dec 2 (Reuters) - The dollar rebounded on Tuesday, supported by a retreat in oil prices that has helped to lift it against commodity-linked currencies. In afternoon New York trade, the dollar index reached a 4-1/2 year high, while gaining 1.30 percent against the Norwegian crown and hitting a fresh seven-year high against the yen. Upbeat comments from two influential U.S. Federal Reserve officials stressing the positive impact on the U.S. economy of the drop in energy prices contributed to the greenbacks strength. The biggest data point on the calendar is Fridays U.S. employment report for November. The dollar is benefiting from a renewed selloff in oil after a sharp rise yesterday, said John Doyle, director of markets at Washington, D.C.-based Tempus Inc. The nonfarm payrolls is obviously one of the main indicators the Fed is looking at now that we are done with QE (quantitative easing), Doyle said. A better-than-expected number is going to be dollar positive on the idea of a sooner-rather-than-later rate hike, and vice versa. . Comments on Monday by Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley that soft oil prices would only temporarily dampen overall U.S. prices, continued to resonate. The pair painted a mostly rosy outlook, suggesting the Fed was not letting energy markets distract it from lifting rates. In contrast, the European Central Bank and the Bank of Japan are grappling with deflation threats, and the sharp fall in oil prices adds to their concerns. The ECB meets on Thursday. The dollar index was up 0.77 percent at 88.622. The dollar advanced to a seven-year peak of 119.22 yen, up 0.70 percent. The euro fell to a one-week low of $1.2381, a loss of 0.70 percent on the day. A Reuters poll put the November U.S. jobless rate at 5.8 percent, unchanged from October, with 230,000 jobs being added. Average earnings are expected to pick up. Falling crude oil prices knocked the Norwegian currency down 1.30 percent against the U.S. dollar to 7.0247 crowns. The U.S. unit traded up 0.58 percent against the Canadian dollar at C$1.1394. The Aussie dollar fell 0.49 percent to $0.8447, flirting with Mondays four-year low of $0.8417. Energy shares lead Wall Street higher; telecoms slip reuters/article/2014/12/02/us-markets-stocks-idUSKCN0JG14T20141202 (Reuters) - U.S. stocks rose on Tuesday as energy stocks led the S&P 500 and Dow, while Biogens rally on news about an experimental treatment for Alzheimers disease topped gains at the Nasdaq. The days gains were broad, with nine of the 10 S&P 500 industry sectors higher. The only group to fall was telecoms down 1.8 percent with AT&T (T.N) down 2.2 percent at $34.29 and Verizon down 1.8 percent at $49.11. Sprint announced it will cut in half the monthly price of service for Verizon and AT&T customers who switch to Sprint. Energy shares on the S&P 500 rose 1.3 percent even as crude oil prices resumed their fall. U.S. crude fell 2.4 percent to near a five-year low while Brentlost 2.3 percent. The Dow Jones industrial average rose 102.75 points, or 0.58 percent, to 17,879.55, a record high. The S&P 500 gained 13.11 points, or 0.64 percent, to 2,066.55 and the Nasdaq Composite added 28.46 points, or 0.6 percent, to 4,755.81. Carmaker shares advanced as the top six automakers sold more cars and trucks in November than analysts expected. The S&P 500 posted 89 new 52-week highs and 5 new lows; the Nasdaq Composite set 102 new highs and 95 new lows. About 6.6 billion shares changed hands on U.S. exchanges, according to BATS Global Markets data, above the daily average last month of about 6.17 billion. Oil tumbles anew on Iraqi export deal, futures margin increase reuters/article/2014/12/02/markets-oil-idUSL3N0TM1LC20141202 NEW YORK, Dec 2 (Reuters) - Oil prices resumed their slide on Tuesday, driven lower by a deal that will add more Iraqi crude to already oversupplied markets, higher margin requirements for trading U.S. futures and a strengthening dollar. Benchmark Brent crude oil on Monday rose more than 3 percent, the most in two years, on speculation that its sharp drop following last weeks OPEC meeting was overdone. Iraqs government said it reached an agreement with Kurdish authorities to export 300,000 barrels per day of oil from Kirkuk and 250,000 bpd from the northern Kurdish region through Turkey. The deal aims to overcome months of dispute that all but halted exports from Kirkuk. Brent on Tuesday fell $2.00, or 2.76 percent, to settle at $70.54, nearly testing Fridays close of $70.15, the lowest since mid 2010. U.S. crude fell $2.12 to $66.88. It rose 4 percent on Monday, the most since August 2012. Crude futures pared losses in post-settlement trading after industry group American Petroleum Institute (API) released data showing U.S. crude stocks fell 6.5 million barrels last week. U.S. crude oil stockpiles had been expected to increase by 1.3 million barrels last week, according to a survey of analysts ahead of the API report. U.S. Energy Information Administration inventory data is due on Wednesday at 10:30 a.m. EST (1530 GMT). Selling pressure earlier followed a decision by CME Group Inc to raise initial margins for crude oil futures on the New York Mercantile Exchange by 15.6 percent from the close of business on Tuesday. That likely prompted liquidation by some traders, brokers said. Crude futures briefly pared losses after Saudi Arabias former intelligence chief said the worlds top oil exporter would consider cutting production if joined by others, including non-OPEC producer Russia. Saudi Arabia sent oil prices into a tailspin last week when it blocked efforts by smaller producers in the Organization of the Petroleum Exporting Countries to curb output. Gold dips as dollar strengthens and oil returns lower reuters/article/2014/12/02/markets-precious-idUSL6N0TM2MU20141202 NEW YORK/LONDON, Dec 2 (Reuters) - Gold slipped on Tuesday as a strong dollar and signals the U.S. economy is benefiting from a decline in oil prices renewed expectations of a tightening in monetary policy by the U.S. Federal Reserve around the middle of next year. Spot gold dipped 0.95 percent to $1,198.77 an ounce by 2:52 p.m. EST (1952 GMT), having gained nearly 4 percent on Monday in its biggest one-day jump since September 2013. U.S. gold futures fell 1.5 percent to settle at $1,199.40 an ounce. Gold prices consolidated after the spot market fell on Monday to a near-three-week low after Switzerland voted against boosting its gold reserves, then rallied to $1,220.99, its highest in a month, as oil prices recovered. Bullion has fallen in tandem with oil in recent sessions on expectations that weaker crude prices could reduce inflationary pressures. The metal is usually seen as a hedge against oil-led inflation. Physical demand from Asian buyers supports gold, but prices in top consumer China were trading at a premium of less than $1 an ounce on Tuesday. Platinum lost 2.1 percent to $1,211.25 an ounce, while silver was flat at $16.42 an ounce and palladium edged 0.6 percent lower to $798.50 an ounce.
Posted on: Wed, 03 Dec 2014 10:29:53 +0000
Trending Topics
Recently Viewed Topics
© 2015