Resource stocks were on a roll in Asia on Thursday as oil prices hit heights not seen since late 2014, though the potential boost to inflation globally also pressured fixed-income assets. Brent crude futures climbed another 34 cents in early trade to $73.82 a barrel, adding to a 2.7 percent jump overnight. U.S. crude gained 30 cents to $68.77.

The surge came on a Reuters report that OPEC’s new price hawk Saudi Arabia would be happy for crude to rise to $80 or even $100, a sign Riyadh will seek no changes to a supply-cutting deal even though the agreement’s original target is within sight.

“The Saudis and their colleagues in OPEC need higher oil for their fiscal positions and the Kingdom is on a bold – and costly – reform program,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader. “So, they might continue to squeeze the lemon while they have the chance and the hand.”

The leap in oil combined with fears that sanctions on Russia could hit supplies of other commodities to light a fire under the entire sector. Aluminium prices reached their highest since 2011, alumina touched an all-time peak and nickel jumped the most in 6-1/2 years. Such increases, if sustained, could fuel inflationary pressures and investors hedged by selling sovereign bonds.

Yields on U.S. two-year Treasuries climbed to levels last visited in 2008 at 2.43 percent while 10-year yields jumped 6 basis points to 2.87 percent. Resource stocks were the big winners driving Australia’s main index up 0.6 percent. Japan’s Nikkei gained 0.4 percent, led by a 1.8 percent rise in basic material stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15 percent, while E-Mini futures for the S&P 500 edged up 0.1 percent. Wall Street had also seen hefty gains in the energy and industrial indexes, though that was offset by softness in sectors such as consumer staples and financials.

IBM’s 7.5 percent drop was the biggest drag on the S&P after the technology company’s quarterly profit margins missed Wall Street targets. The Dow ended down 0.16 percent, while the S&P 500 gained 0.08 percent and the Nasdaq 0.19 percent.

In currency markets, the U.S. dollar remained very much range bound with its index flat at 89.623. It was a fraction firmer on the yen at 107.33 yen, but still short of recent peaks at 107.78. The euro hovered at $1.2379, after easing from the week’s top of $1.2413.

The Canadian dollar hit a one-week low after the Bank of Canada sounded more dovish than expected, saying it did not know when or how aggressive it would need to be on tightening in order to keep inflation in check.

Sterling was softer at $1.4205 after a surprisingly tame reading on inflation led the market to reconsider the likely pace of future rate rises from the Bank of England. Data out on New Zealand on Thursday showed annual inflation there had slowed to just 1.1 percent in the first quarter, underlining expectations that interest rates would remain at record lows for many more months to come.

Resource stocks were on a roll in Asia on Thursday as oil prices hit heights not seen since late 2014, though the potential boost to inflation globally also pressured fixed-income assets.

Resource stocks were on a roll in Asia on Thursday as oil prices hit heights not seen since late 2014, though the potential boost to inflation globally also pressured fixed-income assets. Brent crude futures climbed another 34 cents in early trade to $73.82 a barrel, adding to a 2.7 percent jump overnight. U.S. crude gained 30 cents to $68.77. The surge came on a Reuters report that OPEC’s new price hawk Saudi Arabia would be happy for crude to rise to $80 or even $100, a sign Riyadh will seek no changes to a supply-cutting deal even though the agreement’s original target is within sight. “The Saudis and their colleagues in OPEC need higher oil for their fiscal positions and the Kingdom is on a bold – and costly – reform program,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader. “So, they might continue to squeeze the lemon while they have the chance and the hand.” The leap in oil combined with fears that sanctions on Russia could hit supplies of other commodities to light a fire under the entire sector. Aluminium prices reached their highest since 2011, alumina touched an all-time peak and nickel jumped the most in 6-1/2 years. Such increases, if sustained, could fuel inflationary pressures and investors hedged by selling sovereign bonds. Yields on U.S. two-year Treasuries climbed to levels last visited in 2008 at 2.43 percent while 10-year yields jumped 6 basis points to 2.87 percent. Resource stocks were the big winners driving Australia’s main index up 0.6 percent. Japan’s Nikkei gained 0.4 percent, led by a 1.8 percent rise in basic material stocks. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15 percent, while E-Mini futures for the S&P 500 edged up 0.1 percent. Wall Street had also seen hefty gains in the energy and industrial indexes, though that was offset by softness in sectors such as consumer staples and financials. IBM’s 7.5 percent drop was the biggest drag on the S&P after the technology company’s quarterly profit margins missed Wall Street targets. The Dow ended down 0.16 percent, while the S&P 500 gained 0.08 percent and the Nasdaq 0.19 percent. In currency markets, the U.S. dollar remained very much range bound with its index flat at 89.623. It was a fraction firmer on the yen at 107.33 yen, but still short of recent peaks at 107.78. The euro hovered at $1.2379, after easing from the week’s top of $1.2413. The Canadian dollar hit a one-week low after the Bank of Canada sounded more dovish than expected, saying it did not know when or how aggressive it would need to be on tightening in order to keep inflation in check. Sterling was softer at $1.4205 after a surprisingly tame reading on inflation led the market to reconsider the likely pace of future rate rises from the Bank of England. Data out on New Zealand on Thursday showed annual inflation there had slowed to just 1.1 percent in the first quarter, underlining expectations that interest rates would remain at record lows for many more months to come.

Global stocks: Resource stocks rally as oil surges, bonds suffer

Global stocks recovered to three-week highs on Friday as anticipated strong earnings season took centre stage after US President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria.

MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;ticked up 0.1 per cent while Japan's Nikkei&nbsp;gained 0.8 per cent.

MSCI's broadest gauge of the world's stock markets&nbsp;also edged up 0.1 per cent after hitting a three-week high on Thursday.

In New York, the S&P 500 gained 0.83 per cent, led by a 1.83 per cent gain in financials&nbsp;after strong quarterly results from BlackRock Inc <blk.n> boosted optimism for corporate earnings.</blk.n>

The earnings season begins in earnest on Friday with reports from JPMorgan Chase & Co <jpm.n>, Citigroup Inc <c.n> and Wells Fargo & Co <wfc.n>.</wfc.n></c.n></jpm.n>

Analysts expect quarterly profit for S&P 500 companies to rise 18.4 per cent from a year ago, in what would be the biggest gain in seven years, according to Thomson Reuters.

The mood improved also after Trump tweeted an attack on Syria "could be very soon or not so soon at all," allaying fears of an immediate military action that investors fear could lead to wider conflict between Washington and Moscow.

In another change of tack, Trump has asked his trade advisers to look at re-joining the Trans Pacific Partnership, a multinational trade pact he withdrew the United States from early last year.

"Markets have been pushed around by Trump. His modus operandi seems to do anything that seems to be good for his re-election. If protectionism doesn't work, he may switch to international trade," said Hiroshi Watanabe, economist at Sony Financial Holdings.

"Markets are still not yet convinced yet if the US is really re-joining the TPP. But if it does, it's very positive for the global economy and stock markets will like it," he added.

The improved sentiment drove up US bond yields. The 10-year US Treasuries yield <us10yt=rr> rose to 2.843 per cent, its highest level since March 27.</us10yt=rr>

In the currency market, the dollar rose to 107.27 yen <jpy=>, edging near a five-week high of 107.49 touched on Apr. 5.</jpy=>

The yen has become litmus test for risk sentiment, sought when investors turn risk averse because Japan's hefty current surplus gives protection to any capital outflows deficit-running countries are vulnerable to.

The euro <eur=> eased to $1.2327, though on the week it has kept gains of 0.4 percent.</eur=>

The Hong Kong dollar stood at 7.8498 to the dollar <hkd=d4>, near the lower end of its 7.75-7.85 trading band, a day after Hong Kong's de facto central bank intervened to support the currency for the first time since 2015.</hkd=d4>

The Singapore dollar gained slightly after Singapore's central bank tightened monetary policy for the first time in six years as expected.

Oil prices remained close to highs last reached in late 2014 on tensions in the oil-rich Middle East and shrinking global oil inventories.

Brent crude futures <lcoc1> traded at $71.90 a barrel, a tad below Thursday close but not far from Wednesday's high of $73.09. U.S. WTI crude futures <clc1> stood at $66.87.</clc1></lcoc1>

Elsewhere, bitcoin <btc=btsp> fetched $7,968.5 after 14.2 percent gains on Thursday, its biggest gain in four months.</btc=btsp>

 
&nbsp;

Global stocks recovered to three-week highs on Friday as anticipated strong earnings season took centre stage after US President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria

Global stocks recovered to three-week highs on Friday as anticipated strong earnings season took centre stage after US President Donald Trump backtracked on his suggestion of an imminent missile attack on Syria. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent while Japan's Nikkei gained 0.8 per cent. MSCI's broadest gauge of the world's stock markets also edged up 0.1 per cent after hitting a three-week high on Thursday. In New York, the S&P 500 gained 0.83 per cent, led by a 1.83 per cent gain in financials after strong quarterly results from BlackRock Inc boosted optimism for corporate earnings. The earnings season begins in earnest on Friday with reports from JPMorgan Chase & Co , Citigroup Inc and Wells Fargo & Co . Analysts expect quarterly profit for S&P 500 companies to rise 18.4 per cent from a year ago, in what would be the biggest gain in seven years, according to Thomson Reuters. The mood improved also after Trump tweeted an attack on Syria "could be very soon or not so soon at all," allaying fears of an immediate military action that investors fear could lead to wider conflict between Washington and Moscow. In another change of tack, Trump has asked his trade advisers to look at re-joining the Trans Pacific Partnership, a multinational trade pact he withdrew the United States from early last year. "Markets have been pushed around by Trump. His modus operandi seems to do anything that seems to be good for his re-election. If protectionism doesn't work, he may switch to international trade," said Hiroshi Watanabe, economist at Sony Financial Holdings. "Markets are still not yet convinced yet if the US is really re-joining the TPP. But if it does, it's very positive for the global economy and stock markets will like it," he added. The improved sentiment drove up US bond yields. The 10-year US Treasuries yield rose to 2.843 per cent, its highest level since March 27. In the currency market, the dollar rose to 107.27 yen , edging near a five-week high of 107.49 touched on Apr. 5. The yen has become litmus test for risk sentiment, sought when investors turn risk averse because Japan's hefty current surplus gives protection to any capital outflows deficit-running countries are vulnerable to. The euro eased to $1.2327, though on the week it has kept gains of 0.4 percent. The Hong Kong dollar stood at 7.8498 to the dollar , near the lower end of its 7.75-7.85 trading band, a day after Hong Kong's de facto central bank intervened to support the currency for the first time since 2015. The Singapore dollar gained slightly after Singapore's central bank tightened monetary policy for the first time in six years as expected. Oil prices remained close to highs last reached in late 2014 on tensions in the oil-rich Middle East and shrinking global oil inventories. Brent crude futures traded at $71.90 a barrel, a tad below Thursday close but not far from Wednesday's high of $73.09. U.S. WTI crude futures stood at $66.87. Elsewhere, bitcoin fetched $7,968.5 after 14.2 percent gains on Thursday, its biggest gain in four months.

Global stocks bounce back as Trump backtracks on Syria, earnings hopes

The threat of a global trade war sent stock markets sliding and investors rushing for the safety of currencies like the yen and government bonds on Friday, after US&nbsp;President Donald Trump announced tariffs on up to $60 billion of Chinese goods.

World stocks, down 3.4 per cent since Monday, are on course for their worst week since early February, when a spike in volatility sent markets into a tailspin.

European stocks fell at the open, with Germany&#39;s Dax down 1.6 per cent, the French CAC 40 1.5 per cent lower and Britain&#39;s FTSE 100 0.8 per cent in the red.

That followed large falls in the US, with the S&amp;P 500 shedding 2.5 per cent, and overnight in Asia, where the Japanese Nikkei 225 was the biggest loser slumping 4.5 per cent.

Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period.

China urged the United States to &quot;pull back from the brink&quot;, but investors fear Trump&#39;s tariffs are leading the world&#39;s two largest economies into a trade war with potentially dire consequences for the global economy.

China disclosed its own plans on Friday to impose tariffs on up to $3 billion of US&nbsp;imports in retaliation against the US&nbsp;tariffs on Chinese steel and aluminium products.

&quot;The equity markets are getting clobbered, which is not that surprising with fears of a trade war breaking out,&quot; said Paul Fage, a TD Securities emerging markets strategist.

With investors seeking out safer assets, many jumped into government bond markets in Europe and the United States.

US&nbsp;10-year Treasury yields, which fell almost 8 basis points on Thursday, were set for their biggest two-week fall since September. In Europe, benchmark issuer Germany&#39;s 10-year bond yield hovered close to 10-week lows struck a day earlier at around 0.52 per cent and was on track for its biggest two-week drop since August, down 13 basis points.

Many investors also turned to the yen, a currency likely to benefit from a full-fledged trade war. The Japanese currency gained 0.4 per cent against the dollar to 104.87 yen, the first time it has been below 105 since November 2016.

The Swiss franc, another currency bought in times of market uncertainty, rose 0.3 per cent versus the dollar, although it remained flat against the euro.

The dollar fell 0.2 per cent against a basket of currencies.

&quot;The FX market itself isn&#39;t sure, and its reaction to risk-off and lower bond yields across the board is to buy the yen and the Swiss franc,&quot; Kit Juckes, an FX strategist at Societe Generale, wrote in a daily note.

In commodity markets, oil prices recouped overnight losses after Saudi Arabia said that OPEC and Russian-led production curbs introduced in 2017 will need to be extended into 2019.

US&nbsp;crude futures were up 0.8 per cent at $64.79 per barrel after losing 1.3 per cent on Thursday and Brent gained 0.45 per&nbsp; cent to $69.22.

Safe-haven spot gold rose 1 per cent to $1,341 an ounce, highest since February 20.

Copper and iron prices both fell, as investors bet demand for the metals would suffer in a trade war.

Daniel Lockyer, senior fund manager at Hawksmoor Investment Management, said financial markets had got ahead of themselves and were failing to price in the risk a number of factors could trigger a sell-off.

&quot;It&#39;s not that we thought trade wars would cause the market to fall, it&#39;s that there was too much optimism priced into stock markets,&quot; he said.

The threat of a global trade war sent stock markets sliding and investors rushing for the safety of currencies like the yen and government bonds on Friday, after US President Donald Trump announced tariffs on up to $60 billion of Chinese goods

The threat of a global trade war sent stock markets sliding and investors rushing for the safety of currencies like the yen and government bonds on Friday, after US President Donald Trump announced tariffs on up to $60 billion of Chinese goods. World stocks, down 3.4 per cent since Monday, are on course for their worst week since early February, when a spike in volatility sent markets into a tailspin. European stocks fell at the open, with Germany's Dax down 1.6 per cent, the French CAC 40 1.5 per cent lower and Britain's FTSE 100 0.8 per cent in the red. That followed large falls in the US, with the S&P 500 shedding 2.5 per cent, and overnight in Asia, where the Japanese Nikkei 225 was the biggest loser slumping 4.5 per cent. Trump signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period. China urged the United States to "pull back from the brink", but investors fear Trump's tariffs are leading the world's two largest economies into a trade war with potentially dire consequences for the global economy. China disclosed its own plans on Friday to impose tariffs on up to $3 billion of US imports in retaliation against the US tariffs on Chinese steel and aluminium products. "The equity markets are getting clobbered, which is not that surprising with fears of a trade war breaking out," said Paul Fage, a TD Securities emerging markets strategist. With investors seeking out safer assets, many jumped into government bond markets in Europe and the United States. US 10-year Treasury yields, which fell almost 8 basis points on Thursday, were set for their biggest two-week fall since September. In Europe, benchmark issuer Germany's 10-year bond yield hovered close to 10-week lows struck a day earlier at around 0.52 per cent and was on track for its biggest two-week drop since August, down 13 basis points. Many investors also turned to the yen, a currency likely to benefit from a full-fledged trade war. The Japanese currency gained 0.4 per cent against the dollar to 104.87 yen, the first time it has been below 105 since November 2016. The Swiss franc, another currency bought in times of market uncertainty, rose 0.3 per cent versus the dollar, although it remained flat against the euro. The dollar fell 0.2 per cent against a basket of currencies. "The FX market itself isn't sure, and its reaction to risk-off and lower bond yields across the board is to buy the yen and the Swiss franc," Kit Juckes, an FX strategist at Societe Generale, wrote in a daily note. In commodity markets, oil prices recouped overnight losses after Saudi Arabia said that OPEC and Russian-led production curbs introduced in 2017 will need to be extended into 2019. US crude futures were up 0.8 per cent at $64.79 per barrel after losing 1.3 per cent on Thursday and Brent gained 0.45 per cent to $69.22. Safe-haven spot gold rose 1 per cent to $1,341 an ounce, highest since February 20. Copper and iron prices both fell, as investors bet demand for the metals would suffer in a trade war. Daniel Lockyer, senior fund manager at Hawksmoor Investment Management, said financial markets had got ahead of themselves and were failing to price in the risk a number of factors could trigger a sell-off. "It's not that we thought trade wars would cause the market to fall, it's that there was too much optimism priced into stock markets," he said.

Global stocks slide, yen jumps, as trade war fears grip markets

Global stocks mostly fell Wednesday as rising anxiety over the risk of a trade war took its toll on investor confidence.

The US announced it was taking action at the World Trade Organization against Indian export subsidies.

The White House is also considering slapping tariffs on billions of dollars in Chinese imports, particularly in the tech and telecommunications sector, in response to alleged improper practices involving American intellectual property.

The news follows last week&#39;s announcement of US tariffs on imported steel and aluminum and appeared to more than outweigh any positive investor sentiment associated with Trump&#39;s appointment of free-market economist Larry Kudlow to head the National Economic Council.

&quot;There&#39;s a lot of nervousness, especially related to trade issues,&quot; said Kate Warne, an investment strategist with Edward Jones.

&quot;All of it seems to be far more protectionist than investors expected a few weeks ago. The increase in protectionism raises worries about retaliation and how much it could hamper global growth.&quot;

The Dow opened higher, but veered into negative territory soon thereafter and finished 1.0 per cent lower.

Asian markets were also in retreat as traders took in news that Trump&#39;s moderate Secretary of State Rex Tillerson was being replaced by current CIA chief Mike Pompeo, who some on Wall Street fear may take a harsher line on trade.

&quot;While the game of revolving chairs in Washington plays on, there is more risk aversion creeping into play as geopolitical uncertainty ratchets higher with the more hawkish foreign policy leaning Mike Pompeo now the face of US foreign policy,&quot; said Stephen Innes, who heads Asia-Pacific trading at OANDA.

&quot;Equity investors remain extremely cautious about trade war escalations.&quot;

Both London and Paris suffered modest loses, while Frankfurt edged higher.

Frankfurt was lifted in part by an 11.2 per cent surge in Adidas, which reported higher profits in 2017 on worldwide sales growth and cost savings.

Spanish retail giant Inditex meanwhile climbed more than four per cent after the group posted rising annual profits -- outperforming its long-time Swedish rival H&amp;M.

In London, Prudential shot up more than five per cent after the insurer said it would split in two to better serve its regions of operation.

The US announced it was taking action at the World Trade Organization against Indian export subsidies

Global stocks mostly fell Wednesday as rising anxiety over the risk of a trade war took its toll on investor confidence. The US announced it was taking action at the World Trade Organization against Indian export subsidies. The White House is also considering slapping tariffs on billions of dollars in Chinese imports, particularly in the tech and telecommunications sector, in response to alleged improper practices involving American intellectual property. The news follows last week's announcement of US tariffs on imported steel and aluminum and appeared to more than outweigh any positive investor sentiment associated with Trump's appointment of free-market economist Larry Kudlow to head the National Economic Council. "There's a lot of nervousness, especially related to trade issues," said Kate Warne, an investment strategist with Edward Jones. "All of it seems to be far more protectionist than investors expected a few weeks ago. The increase in protectionism raises worries about retaliation and how much it could hamper global growth." The Dow opened higher, but veered into negative territory soon thereafter and finished 1.0 per cent lower. Asian markets were also in retreat as traders took in news that Trump's moderate Secretary of State Rex Tillerson was being replaced by current CIA chief Mike Pompeo, who some on Wall Street fear may take a harsher line on trade. "While the game of revolving chairs in Washington plays on, there is more risk aversion creeping into play as geopolitical uncertainty ratchets higher with the more hawkish foreign policy leaning Mike Pompeo now the face of US foreign policy," said Stephen Innes, who heads Asia-Pacific trading at OANDA. "Equity investors remain extremely cautious about trade war escalations." Both London and Paris suffered modest loses, while Frankfurt edged higher. Frankfurt was lifted in part by an 11.2 per cent surge in Adidas, which reported higher profits in 2017 on worldwide sales growth and cost savings. Spanish retail giant Inditex meanwhile climbed more than four per cent after the group posted rising annual profits -- outperforming its long-time Swedish rival H&M. In London, Prudential shot up more than five per cent after the insurer said it would split in two to better serve its regions of operation.

Global stocks mostly fall as trade worries take their toll

Global stock markets rose on Thursday, after the Bank of England cut interest rates and revived a bond-buying program to cushion the blow to the economy from Britain&#39;s June 23 vote to leave the European Union. 
 
The launch of the policy-easing measures hammered Sterling and weighed on bond yields. 
 
The Bank of England cut its main rate by a quarter percentage point to a record low 0.25 per cent, and said it would take &quot;whatever action is necessary&quot; to achieve stability in the wake of Britain&#39;s vote to leave the EU. 
 
The rate cut was widely expected but not the other measures. 
 
&quot;The Bank of England has hit a perfect &#39;High Five&#39; at today&#39;s meeting, over-delivering against market expectations and bucking the recent trend of central banks disappointing,&quot; said Nick Gartside, a JP Morgan Asset Management portfolio manager. 
 
MSCI&#39;s world stocks index, which tracks shares in 45 nations, was up 0.30 per cent, on pace to snap a three-day losing streak. 
 
Sterling was down 1.59 per cent at $1.3110 and on track for the largest one-day fall against the Dollar in a month.&nbsp; 
 
&quot;The BoE&#39;s dovish guidance and bearish outlook for growth will leave the Pound at risk of further falls in the months ahead,&quot; said Joe Manimbo, senior market analyst at Western Union Business Solutions.&nbsp; 
 
Wall Street shares were little changed as investors were largely wary of making big bets ahead of Friday&#39;s US nonfarm payrolls report, data that may offer insight into the timing of the next Federal Reserve interest rate increase.&nbsp; 
 
&quot;Given that we&rsquo;ve got a big number coming out tomorrow, any investor willing to make a stand can just wait a day and have a lot more information,&quot; Jack Ablin, chief investment officer at BMO Private Bank in Chicago. 
 
The number of Americans filing for unemployment benefits unexpectedly rose last week, and orders for factory goods fell for a second straight month in June. The labour market, however, remains healthy and will probably continue to support economic growth for the remainder of this year.&nbsp; 
 
In afternoon trading, the Dow Jones industrial average was down 21.75 points, or 0.12 per cent, at 18,333.25; the S&amp;P 500 0.71 point, or 0.03 per cent, lower at 2,163.08, and the Nasdaq Composite was up 5.81 points, or 0.11 per cent, at 5,165.55. 
 
Europe&#39;s broad FTSEurofirst 300 index closed up 0.72 per cent at 1,331.68, its best day in two weeks. Strength in major financial and industrial stocks such as Aviva Plc and Siemens AG boosted the region&#39;s equity markets.&nbsp; 
 
Oil prices rose for a second straight day and US crude advanced firmly above the $40 a barrel mark on short-covering and after a modest stockpile drop at the delivery hub for US crude futures. 
 
Brent crude settled up $1.19, or 2.76 per cent, at $44.29 a barrel, while US crude settled up $1.10, or 2.69 per cent, at $41.93. 
 
In bond markets, the BoE rate cut sent yields on some short- and medium-term US Treasury&#39;s to their lowest in more than three weeks. 
 
The move pushed yields on 10-year UK government bonds, or Gilts, to a record low of 0.639 per cent. 
 
Benchmark 10-year US yields fell to their lowest in three days, 1.484 per cent. 
 
The Dollar gained against a basket of currencies for a second straight session, as investors continued to balance positions ahead of Friday&#39;s jobs report. 
 
The Dollar index, which tracks the greenback against six major currencies, was up 0.20 per cent at 95.750. 
 
Gold prices turned higher on the BoE decision, but the stronger Dollar kept a lid on gains. 
 
Spot gold prices were up 0.26 per cent at $1,361.02 an ounce. 
 
(Reuters)

Sterling was down 1.59% at $1.3110, and on track for the largest one-day fall against the Dollar in a month

Global stock markets rose on Thursday, after the Bank of England cut interest rates and revived a bond-buying program to cushion the blow to the economy from Britain's June 23 vote to leave the European Union. The launch of the policy-easing measures hammered Sterling and weighed on bond yields. The Bank of England cut its main rate by a quarter percentage point to a record low 0.25 per cent, and said it would take "whatever action is necessary" to achieve stability in the wake of Britain's vote to leave the EU. The rate cut was widely expected but not the other measures. "The Bank of England has hit a perfect 'High Five' at today's meeting, over-delivering against market expectations and bucking the recent trend of central banks disappointing," said Nick Gartside, a JP Morgan Asset Management portfolio manager. MSCI's world stocks index, which tracks shares in 45 nations, was up 0.30 per cent, on pace to snap a three-day losing streak. Sterling was down 1.59 per cent at $1.3110 and on track for the largest one-day fall against the Dollar in a month. "The BoE's dovish guidance and bearish outlook for growth will leave the Pound at risk of further falls in the months ahead," said Joe Manimbo, senior market analyst at Western Union Business Solutions. Wall Street shares were little changed as investors were largely wary of making big bets ahead of Friday's US nonfarm payrolls report, data that may offer insight into the timing of the next Federal Reserve interest rate increase. "Given that we’ve got a big number coming out tomorrow, any investor willing to make a stand can just wait a day and have a lot more information," Jack Ablin, chief investment officer at BMO Private Bank in Chicago. The number of Americans filing for unemployment benefits unexpectedly rose last week, and orders for factory goods fell for a second straight month in June. The labour market, however, remains healthy and will probably continue to support economic growth for the remainder of this year. In afternoon trading, the Dow Jones industrial average was down 21.75 points, or 0.12 per cent, at 18,333.25; the S&P 500 0.71 point, or 0.03 per cent, lower at 2,163.08, and the Nasdaq Composite was up 5.81 points, or 0.11 per cent, at 5,165.55. Europe's broad FTSEurofirst 300 index closed up 0.72 per cent at 1,331.68, its best day in two weeks. Strength in major financial and industrial stocks such as Aviva Plc and Siemens AG boosted the region's equity markets. Oil prices rose for a second straight day and US crude advanced firmly above the $40 a barrel mark on short-covering and after a modest stockpile drop at the delivery hub for US crude futures. Brent crude settled up $1.19, or 2.76 per cent, at $44.29 a barrel, while US crude settled up $1.10, or 2.69 per cent, at $41.93. In bond markets, the BoE rate cut sent yields on some short- and medium-term US Treasury's to their lowest in more than three weeks. The move pushed yields on 10-year UK government bonds, or Gilts, to a record low of 0.639 per cent. Benchmark 10-year US yields fell to their lowest in three days, 1.484 per cent. The Dollar gained against a basket of currencies for a second straight session, as investors continued to balance positions ahead of Friday's jobs report. The Dollar index, which tracks the greenback against six major currencies, was up 0.20 per cent at 95.750. Gold prices turned higher on the BoE decision, but the stronger Dollar kept a lid on gains. Spot gold prices were up 0.26 per cent at $1,361.02 an ounce. (Reuters)

Global stocks rally after Bank of England's bond-buying measures, but Pound takes hit

<div style="text-align: justify;">Fears that&nbsp;Britain is on the verge of voting to leave the European Union next week, spread through global financial markets today, sending Asian and European shares sharply lower and the pound to an eight-week low. 
 
With the world economy looking shaky, and surprisingly weak, jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks. 
 
They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a one&nbsp;per cent drop in European share prices, after a new poll late on Friday gave the &quot;Leave&quot; camp a 10 point lead. 
 
Money markets have now abandoned expectations, high just weeks ago, that the US&nbsp;Federal Reserve could raise official borrowing costs on Wednesday. Instead, the worry is that it could use language that quells expectations of a move this year at all. 
 
&quot;We&#39;re in uncharted territory in front of the Brexit vote, and then there&#39;s also the Fed this week. So the wall of worry is quite high at the moment,&quot; said Zeg Choudhry, managing director at LONTRAD.&nbsp;&quot;All the banks are a little bit lower, and they&#39;re the ones which are likely to get hit. For the next two weeks, you&#39;ve got to be slightly mad if you&#39;ve not got your money in defensive stocks.&quot; 
 
The news out of China, global investors&#39; other big concern this year, was also poor, with data showing investment growth cooling. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around three&nbsp;per cent. 
 
By comparison, the moves in Europe, where investors have been preparing for the British vote for months, were more subdued. Britain&#39;s FTSE 100 fell one&nbsp;per cent, Germany&#39;s DAX 0.9 per cent, and France&#39;s CAC 40 by 0.8 per cent. 
 
On currency markets, sterling fell another half a per cent against the Dollar after sinking by as much as 3 full cents in value on Friday. The biggest beneficiary of the global moves, however, was the Yen, traditionally investors&#39; first choice in times of financial and economic stress. 
 
Further gains for the Japanese currency, which broke past long-term resistance around 106.50 Yen per Dollar and is up 14 per cent this year, puts more pressure on the Bank of Japan to act against the currency&#39;s strength this week. 
 
&quot;While the pound is the worst-performing G10 currency versus the Dollar this year, the Yen is by far the best,&quot; said Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi in London. 
 
&quot;The continued surge of the Yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing.&quot; 
 
The grim mood was visible on commodities markets, where crude oil futures added to Friday&#39;s three&nbsp;per cent drop after data showed the US&nbsp;oil drilling rig count rose for the second week in row. 
 
Gold, another perceived safe haven, hit four-week highs above $1,280 an ounce. (Reuters)</div>

Asian stock markets experience biggest drop in 4 months and European share prices fall by one per cent due to Britain's unassertive decision

Fears that Britain is on the verge of voting to leave the European Union next week, spread through global financial markets today, sending Asian and European shares sharply lower and the pound to an eight-week low. With the world economy looking shaky, and surprisingly weak, jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks. They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a one per cent drop in European share prices, after a new poll late on Friday gave the "Leave" camp a 10 point lead. Money markets have now abandoned expectations, high just weeks ago, that the US Federal Reserve could raise official borrowing costs on Wednesday. Instead, the worry is that it could use language that quells expectations of a move this year at all. "We're in uncharted territory in front of the Brexit vote, and then there's also the Fed this week. So the wall of worry is quite high at the moment," said Zeg Choudhry, managing director at LONTRAD. "All the banks are a little bit lower, and they're the ones which are likely to get hit. For the next two weeks, you've got to be slightly mad if you've not got your money in defensive stocks." The news out of China, global investors' other big concern this year, was also poor, with data showing investment growth cooling. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around three per cent. By comparison, the moves in Europe, where investors have been preparing for the British vote for months, were more subdued. Britain's FTSE 100 fell one per cent, Germany's DAX 0.9 per cent, and France's CAC 40 by 0.8 per cent. On currency markets, sterling fell another half a per cent against the Dollar after sinking by as much as 3 full cents in value on Friday. The biggest beneficiary of the global moves, however, was the Yen, traditionally investors' first choice in times of financial and economic stress. Further gains for the Japanese currency, which broke past long-term resistance around 106.50 Yen per Dollar and is up 14 per cent this year, puts more pressure on the Bank of Japan to act against the currency's strength this week. "While the pound is the worst-performing G10 currency versus the Dollar this year, the Yen is by far the best," said Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi in London. "The continued surge of the Yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing." The grim mood was visible on commodities markets, where crude oil futures added to Friday's three per cent drop after data showed the US oil drilling rig count rose for the second week in row. Gold, another perceived safe haven, hit four-week highs above $1,280 an ounce. (Reuters)

Brexit fear factor sends global stocks spinning

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