China Money Rates Tumble for Second Day on Targeted PBOC Easing

Bloomberg (24/6) - China’s benchmark money-market rates tumbled for a second day, extending a retreat from record highs, on signs targeted injections of funds are being used to ease a cash crunch that threatens to worsen an economic slowdown. Interbank loans were recorded in the final hour of trading on both June 20 and 21 at below-market rates, according to data compiled by Bloomberg. The People’s Bank of China said the nation should “appropriately fine-tune” its policies, according to a statement yesterday that summarized the monetary policy committee’s second-quarter meeting in Beijing. The monetary authority gauged demand for sales of repurchase agreements and reverse repo contracts this morning, according to a trader at a primary dealer required to bid at the auctions.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 10:39 AM

Dollar Climbs to 2-Week High Versus Yen on Fed Tapering Outlook

Bloomberg (24/6) - The dollar rose to a two-week high versus the yen before data that may add to the case for the Federal Reserve to pare back bond purchases. The U.S. currency strengthened ahead of reports tomorrow that will probably show orders for durable goods grew and house prices continued to recover. Fed Bank of Dallas President Richard Fisher will speak on monetary policy in London today. The yen slumped against most major peers as Japan’s ruling coalition won a majority in Tokyo elections, signaling support for Prime Minister Shinzo Abe. Declines in the euro were tempered before the release of a German sentiment survey. The greenback rose 0.7 percent to 98.61 yen as of 11:52 a.m. in Tokyo, the highest level since June 11. It gained 3.8 percent last week, the biggest jump since the five days ended Dec. 4, 2009. The U.S. currency added 0.2 percent to $1.3093 per euro, gaining for a fourth day, after earlier touching $1.3087, the most since June 6. The yen declined 0.5 percent to 129.07 per euro. The Dollar Index, which Intercontinental Exchange Inc. uses to monitor the greenback against the currencies of six U.S. trade partners, rose 0.4 percent to 82.664 and reached 82.686 earlier, the highest level since June 5.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 10:30 AM

Gold inches up after biggest weekly fall in two years

Reuters, (24/6) -- Gold edged higher on Monday after a tumultuous week that saw prices drop the most in nearly two years on fears of an early end to the Federal Reserve's bond purchases and a cash crunch in China. Spot gold gained 0.07 percent to $1,297.66 an ounce by 0018 GMT. It rose over 1 percent on Friday but recorded its worst weekly performance - down 7 percent - since September 2011. Comex gold rose about $5 to $1,297.30. Markets were roiled last week after Federal Reserve Chairman Ben Bernanke laid out a strategy for the U.S. central bank to start scaling back its $85 billion monthly bond buying program. St. Louis Federal Reserve Bank President James Bullard on Friday said neither the central bank's own economic growth forecasts nor its expectations for continued weak inflation supported a decision to dial back bond purchases. China's central bank faced down the country's cash-hungry banks on Friday, letting interest rates again spike to extraordinary levels of some 25 percent for some banks as it stepped up the pressure to contain rampant informal lending. Hedge funds and money managers slashed their bullish bets in gold futures and options for a second consecutive week to the lowest level in a month, a report by the Commodity Futures Trading Commission showed on Friday. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.54 percent to 989.94 tonnes on Friday.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 10:28 AM

Gold Trade Most Bearish Since ’10 as Fed Spurs Drop: Commodities

Bloomberg ~ Gold traders are the most bearish in 3 1/2 years after prices fell to the lowest since 2010 following Federal Reserve Chairman Ben S. Bernanke’s comments that the central bank may start curbing stimulus.

Fifteen analysts surveyed by Bloomberg expect prices to fall next week, with six bullish and five neutral, the largest proportion of bears since January 2010. The metal slumped below $1,300 an ounce for the first time since September 2010 yesterday. Investors sold 520.7 metric tons valued at about $21.7 billion from exchange-traded products this year.
 
Gold as much as doubled since 2008 as quantitative easing swelled the Fed’s balance sheet to a record $3.41 trillion. Bernanke said June 19 the central bank may start reducing the $85 billion in monthly debt buying this year and end the program in 2014. Bullion is heading for its first annual drop since 2000 after some investors lost faith in the metal as a store of value.

“The comments by the Fed are really the last signal for the soft hands that the bull market in gold is ending,” said Frederique Dubrion, the Geneva-based president and chief investment officer of Blue Star Advisors SA, which manages metals and energy assets. “One of the appeals of gold, especially since 2008, was because of quantitative easing. That they are going to slow down the pace of purchasing is not a good signal for gold.”

source: http://www.bloomberg.com/news/2013-06-20/gold-trade-most-bearish-since-10-as-fed-spurs-drop-commodities.html

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 10:54 AM

Hong Kong Stocks Head for Longest Weekly Loss Streak Since 2008

Bloomberg, (21/6) - Hong Kong stocks fell a fourth day, heading for the longest weekly losing streak in 4 1/2 years, amid concern a worsening credit crunch for Chinese banks and a stalling recovery in the world’s second-largest economy will hamper earnings. The Hang Seng Index dropped 1.9 percent to 20,003.57 as of 9:45 a.m. in Hong Kong, extending this week’s slide to 4.6 percent. The equity benchmark is heading for a sixth week of declines, the longest such losing streak since October 2008. All but one of the 50 companies on the index fell, with volume 50 percent above the 30-day intraday average. The Hang Seng China Enterprises Index lost 2.2 percent to 9,058.63. “We see a lack of recovery momentum in China,” Tai Hui, Hong-Kong based chief market strategist for Asia at JPMorgan Asset Management, which oversees about $1.5 trillion globally, said in a Bloomberg TV interview. “What’s happening in China with the data as well as the liquidity squeeze have added to uncertainty. The government and central bank are willing to let the economy go through some pain.” (riko)

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PT.Kontak Perkasa Futures, Updated at: 10:38 AM

Dollar Set for Weekly Gain Before Data on Housing, Goods Orders

Bloomberg, (21/6) -- The dollar headed for a weekly gain against all of its 16 major peers before U.S. data next week on home prices and durable-goods orders that may add to the case for the Federal Reserve to slow its bond purchases. The yen snapped a four-day decline against the greenback as Asian stocks extended a global rout before a speech today by Bank of Japan Governor Haruhiko Kuroda. Deutsche Bank AG’s G10 FX Carry Basket index fell to the lowest level since September as borrowing costs rose in the U.S. “I expect the dollar to remain resilient because it’s become clear that the Fed’s policy stance is tapering,” said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc in New York. The yen may weaken further as “there’s a sufficiently good chance that the Bank of Japan will have to introduce additional monetary easing.' The dollar traded little changed at $1.3216 per euro as of 10:13 a.m. in Tokyo, set for a 1 percent advance on the week. The yen was little changed at 97.29 per dollar and added 0.1 percent to 128.55 against the euro.

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PT.Kontak Perkasa Futures, Updated at: 10:35 AM

WTI Crude Drops a Second Day on Rising Stockpiles, Fed Easing

Bloomberg, (20/6) -- West Texas Intermediate crude fell for a second day after U.S. stockpiles unexpectedly increased and Federal Reserve Chairman Ben S. Bernanke said the central bank may start reducing bond purchases later this year.   U.S. crude inventories rose by 313,000 barrels last week, the Energy Information Administration said yesterday. Supplies were forecast to decline by 500,000 barrels, according to a Bloomberg News survey. The Fed may begin tapering bond purchases this year and end them in 2014 should the economy continue to improve, Bernanke said in Washington. WTI for July delivery, which expires today, dropped as much as 89 cents to $97.35 a barrel in electronic trading on the New York Mercantile Exchange. The volume of all futures traded was 12 percent above the 100-day average. Prices decreased 20 cents to $98.24 yesterday. The more actively traded August contract was down 80 cents at $97.68 at 11:39 a.m. Sydney time. Brent for August settlement on the London-based ICE Futures Europe exchange lost as much as 97 cents, or 0.9 percent, to $105.15 a barrel. The European benchmark grade was at a premium of $7.58 to WTI futures, from $7.64 yesterday.

Written by: Kontak Perkasa Futures

PT.Kontak Perkasa Futures, Updated at: 10:22 AM