DJI - NEW YORK, Jan 29 (Reuters) - Stock
markets around the world rose and the dollar fell to a 14-month low against the
euro on Tuesday amid rising risk appetite as the Federal Reserve began a
two-day policy meeting in which it is expected to maintain its easy monetary
policy.
A report that showed U.S.
single-family home prices rose in November, building on a string of gains that
point to a housing market that is on the mend, added to investor optimism on
economic growth.
Still, investors were cautious about
making big bets, given mixed U.S. economic data, the run-up in stocks in recent
weeks and risk in the form of a slew of economic reports for the rest of the
week, as well as the Fed meeting.
Markets were initially weaker on a
report showing U.S. consumer confidence dropped in January to its lowest in
more than a year. But that same data kept alive expectations the Fed will
maintain its ultra-easy monetary policy for the foreseeable future.
"There is a serious split
between the attitudes of consumers and the attitudes of the markets," said
Joseph Trevisani, chief market strategist at WorldWideMarkets, in Woodcliff
Lake, New Jersey, after the consumer confidence data. "This may make for a
weaker dollar as it makes it less likely the Fed will contemplate an early
removal of QE," referring to the central bank's debt-buying program called
quantitative easing.
The euro extended gains versus the
dollar, breaking above key resistance to hit a 14-month high It last traded at
$1.3491.
STOCKS GAIN
The Dow Jones industrial average gained
72.49 points, or 0.52 percent, at 13,954.42. The Standard & Poor's 500
Index was up 7.66 points, or 0.51 percent, at 1,507.84. The Nasdaq Composite
Index was down 0.64 points, or 0.02 percent, at 3,153.66.
"A move like this in one month
is extraordinary, and keeping the gains going will depend on concrete news like
earnings and data that show the economy is getting better," said Peter
Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
"We haven't seen enough of that to make people jump in after the rally
we've had."
European stocks scaled two-year
highs, boosted by miners, as optimism about economic recovery gained momentum
following the encouraging U.S. home price data and comments on growth in top
metals consumer China.
U.S. DEBT
In the U.S. Treasury debt market,
benchmark 10-year yields proved unable to hold above the key 2 percent level
touched on Monday, with investors looking ahead to a debt auction later in the
day, as well as the Fed meeting.
The benchmark 10-year U.S. Treasury
note was down 9/32, the yield at 1.9955 percent.
Debt prices had earlier reversed
losses to advance after the U.S. consumer confidence data.
Investors now await the outcome of
the Fed meeting on Wednesday. The Fed is not expected to change its stance
after deciding only in December to loosen conditions further. However,
investors are watching to see if changes in the membership of the
policy-setting committee for 2013 could signal a shift in the future.
Gold snapped a four-day losing
streak to rise 0.5 percent to around $1,662.60 an ounce, but any hint that the
Fed is considering an end to its loose monetary policy would probably send the
precious metal down.
NYMEX - NEW YORK, Jan 29 (Reuters) - U.S.
crude futures rose more than 1 percent on Tuesday, after strong U.S. housing
market data bolstered confidence that economic growth and fuel demand were
accelerating.
CBOT Soybean - Soybean
futures on the Chicago Board of Trade ended higher on Tuesday on uncertainty
about prospects for much-needed rains in crop areas of Argentina, traders said.
· The market pared gains after the midday run of the main U.S. weather forecasting model added more rain to Argentina's crop belt, but some private forecasters were skeptical of the update, and values firmed by the close.
· Soybean harvest delays or transport problems in South America may shift business back to the United States in the next one to three months, pushing up U.S. soybean futures, analysts Oil World said.
· China is set to increase its soybean, soyoil and palm oil imports in the current 2012/13 season to meet demand created by the country’s continued economic growth, Hamburg-based oilseeds analyst Oil World said.
· China's soybean imports between April and June are likely to reach 15 million tonnes, up from an estimated 11 million tonnes in the first quarter, according to government think tank the China National Grain and Oils Information Centre.
· Brazilian analysts Safras e Mercado raised its estimate of Brazil's 2012/2013 soybean crop to 84.69 million tonnes, up 25 percent from last year's crop and up slightly from its previous outlook of 84.31 million tonnes in December.
· Malaysian palm oil futures rose on expectation some buyers may switch after Indonesia announced a higher crude palm oil export tax, although gains were limited by persistent concerns over record stocks.
FCPO - SINGAPORE, Jan 29 (Reuters) -
Malaysian palm oil futures gained on Tuesday on expectation some buyers may
switch after Indonesia announced a higher crude palm oil export tax, although
gains were limited by persisting concerns over record stocks.
Indonesia, the world's top palm oil
producer, will increase its export tax for crude palm oil to 9 percent for
February from 7.5 percent in the previous month, while Malaysia's crude palm
oil export tax will remain at zero percent for February.
"The market is a bit uncertain
now, the focus is on stocks and exports. That's why we see some range-trading
today," said a trader with a foreign commodities brokerage in Malaysia.
"But the higher Indonesia tax could be a reason why the market is a bit positive."
By market close, the benchmark April
contract n the Bursa Malaysia Derivatives Exchange had climbed 1.3 percent to
2,476 ringgit ($805) per tonne. The market traded in a range of 2,446-2,484
ringgit after resuming trading from a Monday holiday.
Total traded volumes stood at 30,506
lots of 25 tonnes each, higher than the usual 25,000 lots.
Market players will be looking out
for Malaysia's January palm exports data due Thursday for further trading cues.
Shipments for the first 25 days of
the month suffered a double-digit decline on lower Chinese and European demand,
raising worries that stocks could still climb higher in January after hitting a
record 2.63 million tonnes last month.
Palm oil exports from Indonesia fell
4 percent to 1.9 million tonnes in December from the previous month, industry
data showed on Tuesday.
Brent crude stayed above $113 on
Tuesday on hopes that economic growth might be picking up in the world's
largest oil consumer after a gauge of planned U.S. business spending rose in
December, adding to recent positive global economic data.
Jan 29 (Reuters) - Most Southeast
Asian stock markets gained on Tuesday, with the Philippines hitting a record
high and the region enjoyed foreign inflows ahead of more U.S. economic data
and a Federal Reserve policy decision later in the week that may offer clues to
the Fed's stimulus plans.
Philippine Composite Index ended 0.7
percent firmer at a record closing high of 6,234.73 points, after hitting a
fresh intraday peak of 6,254.04.
Thai SET index rose 0.5 percent to
1,478.77, its highest close since November 1994.
Manila saw a net foreign inflow of
$31.9 million, Jakarta received a net foreign buying of $20.4 million, and
Kuala Lumpur witnessed an inflow of $49.46 million.
Indonesia gained 0.5 percent and
ended at 4439.03 and Vietnam ended 0.9 percent higher at 484.01, a near
nine-month high. Malaysia ended steady.
