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[IFX Gertrude]

South Korea Industrial Output Tumbles In August



Industrial production in South Korea was down 3.8 percent on month in August, Statistics Korea said on Tuesday. That was well shy of forecasts for an increase of 0.4 percent following the upwardly revised 1.5 percent gain in July (originally 1.1 percent). On a yearly basis, industrial production fell 2.8 percent - also missing expectations for a gain of 2.5 percent following the upwardly revised 3.9 percent jump in the previous month (originally 3.4 percent). The index of all industry production was down 0.6 percent on month and up 0.6 percent on year.

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[IFX Yvonne]

Gold drops to nine month low on strengthening dollar



Futures for gold fell to their lowest value since January with outlook over higher borrowing rates in the US spurring the dollar upward and decreasing demand for an inflation hedge.

Bullish wagers made on gold by money managers have declined for six consecutive weeks, making the longest losing streak in over years based on government data. Holdings in bullion backed exchange traded products around the world shrunk to the smallest in five years with the metal close to erasing all its gains for 2014.

Futures for gold with a delivery date in December fell by 0.6% to arrive at a price per ounce of $1,211.60 early afternoon in New York’s Comex. It earlier touched its lowest since January 2nd at $1,204.30. The precious metal has declined by 8.4% so far this quarter, its first losing three month period for the year. Gold underwent a rally during the first half of the year due to geopolitical tensions rising up around the world, particularly in Ukraine and the Middle East.

Adrian Day Asset Management president Adrian Day says that, “It’s really been the dollar that probed gold lower since the beginning of July.” The US dollar rose to its highest four years today against a basket of 10 currencies to put it on track to record its largest gain in a quarter. The Federal Reserve increased its outlook for interest rates on September 17, suggesting that its commitment to stabilize inflation.

Commodities research head Jeffrey Currie from Goldman Sachs Group Inc. claims that gold will continue to fall until it reached $1,050 per ounce by the end of the year.

Futures of silver with a delivery date in December fell by 2.9% for a price per ounce of $17.057 after hitting its lowest since March 2010 of $16.85. It has dropped by 19% this quarter.

Palladium for December also declined by 1.8% to $775.15 per ounce. It has lost 15% during this month. Platinum in January fell by 0.7% to $1,300.50 per ounce as part of its 12% loss this quarter.

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[IFX Yvonne]

Gold climbs for second straight day behind falling stocks



Gold crept up from its nine month low for the second consecutive day after stock markets around the world declined due to disappointing manufacturing statistics, pushing up demand for alternative investments.
Spot gold increased to a price per ounce as high as $1,216.77 after improving by 0.2% and was trading mid morning Singapore time at $1,216.62, based on generic pricing from Bloomberg. The precious metal hit its lowest value since January 2nd of $1,204.57 last September 30th which put it within 0.5% of erasing all its gains for the year.
Data from Europe, showed that factory activities grew at their slowest pace in more than a year during September while the sector in the US cooled down as well. In China, output levels from factories were unchanged from August to September. Stocks in Asia declined for the fifth straight day today after the US market fell, pushing down the MSCI All Country World Index to its lowest level in five months.
Analyst Lachlan Shaw from Commonwealth Bank of Australia says that, “Gold rose on safe-haven demand as economic concerns flared up.”
Futures of gold similarly traded up from yesterday’s price per ounce of $1,215.50 to $1,216.90 in New York’s Comex. Holdings under the largest bullion backed exchange traded product, the SPDR Gold Trust, decreased to the fewest since December 2008 at 768.66 metric tons.
Spot silver increased by 0.5% for a price per ounce of $17.2715 to continue yesterday’s 1.2% improvement. Platinum rose to $1,289.69 per ounce to show a climb of 0.5% today after falling to its lowest value since October 2009 yesterday at $1,263.38. Palladium improved by 0.8% for a price per ounce of $784.63.

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[IFX Yvonne]

UK stocks sink to lowest of the year on ECB uncertainty



UK stocks stooped to its lowest level so far for the year as investors doubted the asset-purchase program of the European Central Bank’s capacity to stimulate the euro-area economy.
The FTSE 100 shed 1.7% to 6,446.39 at the end of the trading session in London. It is the biggest slump of the gauge since January. The index sank after the ECB meeting where they outlined the details of the asset-purchase program. For the week alone, the index has already lost a total of 3.1% as grocers plummeted. This makes for a total of 1.8% loss for the quarter.
Ashtead Group Plc shed 4.6% to 977 pence. Xaar Plc plunged by 37%.
In the Thursday meeting, ECB President Mario Draghi announced that the ECB will be buying assets for at the very least, 2 years. It will start with covered-bonds purchases for the current month and then for the quarter, it will have asset-backed securities next with as much as 1 trillion euros or $1.3 trillion worth of assets to be possibly added in the ECB’s balance sheet. Draghi focused on the asset-purchase program however left investors hanging on further details such as the program’s size. Across the globe, stocks are on a global selloff as they are hit with a ‘risk-off’ period that had investors turning to safe havens like gold and bonds. US and Asian stocks are down with the former dragged by the ECB meeting and the jobless claim uptick while the latter faced the extension of the pro-democracy protests in Hong Kong to its seventh day.

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[IFX Yvonne]

Hong Kong stocks rebound on China Mobile, casino shares



Hong Kong stocks rebounded from the previous trading days slump as casino shares continued its rally while China Mobile Ltd. regained from a drop.

The Hang Seng Index climbed 0.4% to 23,401.26, 11:00 am, Hong Kong time. The gauge shed as much as 0.5% in the intraday trading. Last week, it plummeted by 2.6% after the escalated pro-democracy Hong Kong protests that went through the Chinese Golden Week holiday. It was the biggest drop of the index since March of this year. The H-share index or the Hang Seng China Enterprises Index rose by 0.5% to 10,462.26 as Mainland Chinese markets resume trading tomorrow.

As per the latest reports, several rounds of talks will be held where Hong Kong officials and protest leaders will be discussing the matter of democracy and electoral freedom as a result of a preparatory meet up yesterday. According to reports, the result of the formal meetings, that were hoped to start as early as October 12, will be confirmed and implemented by the government according to their negotiations.

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[IFX Yvonne]

Kazakhstan dollar bonds attract investors



Investors snapped up the first dollar bond of Kazakhstan in over a decade with the debt the first of its kind to include provisions put in place following Argentina’s default earlier this year. Kazakhstan, a Central Asian country rich in oil fields, was able to raise $2.5 billion through the sale of 10 and 30 year dollar denominated bonds that had respective yields of 4.073% and 5.116%. The offering ended up being significantly oversubscribed with the country’s second biggest bank’s brokerage unit, Halyk Finance, saying that its order books went over $11 billion. The bonds included a binding clause that investors would follow all super majority decisions made by 75% of the holders, a section endorsed by international financial organizations after Argentina was plunged into a debt crisis due to a default. The country joins other former Soviet Union members who have tapped into international debt markets over the past year including Azerbaijan and Armenia who both did so for the first time in their history. Kazakhstan made the offering despite concerns over falling oil prices. Further declines in the energy market and lingering economic struggles in Russia could put at risk the government’s target for a 5% growth rate this year, officials admitted.

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[IFX Gertrude]

South Korean Financial Markets closed on Thursday



South Korean financial markets are closed on Thursday for a public holiday. Markets will resume trade at normal hours on Friday, Oct. 10.

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[IFX Gertrude]

Japan Tertiary Industry Index Eases 0.1% In August



An index measuring tertiary industry activity was down a seasonally adjusted 0.1 percent on month in August, the Ministry of Economy, Trade and Industry said on Friday - standing at 97.8. That missed forecasts for an increase of 0.1 percent following the flat reading in July. The industries that were down included scientific research, retail trade, utilities and accommodations. Industries that saw increased activity included finance, recreation, communication, health care and real estate.

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[IFX Gertrude]

Usdmyr to Open Around 3.2600 on Higher Ndfs



USD/MYR to continue firm above 3.25, eyes break above 3.2860 1 Oct high 1 month traded 3.2665-3.2715 range overnight, closed 3.2715-3.2750 in NY Growth worries; stocks sell-off supportive of pair


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[IFX Gertrude]

Japan M2 Money Stock +3.0% On Year In September



The M2 money stock in Japan was up 3.0 percent on year in September, the Bank of Japan said Tuesday - standing at 876.8 trillion yen. That exceeded forecasts for an increase of 2.9 percent and it marked the fourth straight month with the same reading. The M3 money stock added an annual 2.5 percent to 1,190.2 trillion yen versus forecasts for 2.4 percent, which would have been unchanged. The L money stock gained 3.2 percent on year to 1,565.1 trillion yen after gaining 3.1 percent a month earlier.


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