Tuesday, October 26, 2010

Trader's Highlight

DJI-NEW YORK, Oct 25 (Reuters) - U.S. stocks rose to a five-and-a-half month high on Monday as a falling dollar, partly driven by expectations of further stimulus by the Federal Reserve, prompted investors to buy riskier assets.

The slide in the greenback continued after a weekend meeting of the Group of 20 stopped short of setting targets to reduce trade imbalances. Bets the Fed will stimulate growth by effectively printing money to buy assets has weakened the dollar, which in turn has lifted commodity prices.

The Dow Jones industrial average <.DJI> gained 31.49 points, or 0.28 percent, to 11,164.05. The Standard & Poor's 500 Index <.SPX> added 2.54 points, or 0.21 percent, to 1,185.62. The Nasdaq Composite Index <.IXIC> advanced 11.46 points, or 0.46 percent, to 2,490.85.

MYMEX-NEW YORK, Oct 25 (Reuters) - U.S. crude oil futures ended 1 percent higher, rising for a second straight session, as the dollar weakened and equities rose, and on comments from Greece's central bank that the worst was over for Greek banks.

Crude futures seesawed all day, retreating from the day's high when the dollar pared losses after falling when the Group of 20 meeting over the weekend disappointed investors.

On the New York Mercantile Exchange, December crude settled up 83 cents, or 1.02 percent, at $82.52 a barrel, trading from $81.45 to $83.28.

CBOT-CHICAGO, Oct 25 (Reuters) - Chicago Board of Trade grain and soy complex close on Monday.

CBOT-SOYBEANS - November up 18-1/4 cents at $12.17-3/4 per
bushel; January up 18-1/2 at $12.30. Falling dollar and brisk export sales of U.S. soy, especially to China, combined to lift soybean futures.

CBOT-SOYOIL - December up 1.17 cents at 49.47 cents per lb. Gains in crude oil, soybean markets supportive.

FCPO-KUALA LUMPUR, Oct 25 (Reuters) - Vegetable oil markets jumped to two-year highs on Monday as the dollar fell broadly after a Group of 20 meeting and on concerns over delayed output in main soy producing areas.

The dollar slid against Asian currencies on Monday after the gathering produced enough agreement to keep in place a status quo trade of selling the U.S. currency and buying equities and commodities. [MKTS/GLOB]

Malaysian benchmark January palm oil ended at 3,071 ringgit ($986.5) after climbing as much as 2.4 percent to hit its highest since July 28, 2008. Volume almost doubled to 19,159 lots from the usual 10,000 lots.

REGIONAL EQUITIES-HONG KONG, Oct 25 (Reuters) - Most Southeast Asian stock markets rose on Monday, with Jakarta hovering near an all-time
high on optimism that Indonesian companies will report upbeat earnings this week, underpinned by the country's solid growth.

Shares in Singapore were trading close to a 29-month high posted in middle of this month, with the market focusing on a $8.3 billion takeover bid by local bourse operator Singapore Exchange for Sydney-based ASX Ltd .

In Singapore, the market was riveted by news that SGX had agreed to take over Australia's bourse operator to create Asia's fourth-largest stock exchange.

But traders said there were concerns SGX was paying too high a price, sending its stock 6 percent lower. Shares in ASX ended up 19.4 percent. Sentiment was also buoyed by gains in the broader Asian market, with the MSCI index of Asia-Pacific stocks outside Japan <.MIAPJ0000PUS> up 1.7 percent as of 0924 GMT. Malaysian shares <.KLSE> were little changed.