Bank Liquidity Tap

Brent crude held steady above $109 on Thursday, supported by a rebound in U.S. oil prices on hopes that a reversal in oil flow for the Seaway pipeline will reduce a supply glut in the U.S. Midwest. Investors cast aside worries about higher oil supply and the euro zone crisis that have dogged the market for the past few weeks and bought U.S. crude futures, allowing the front-month contract to rebound for the first time in five sessions. West Texas Intermediate (WTI) crude was up 61 cents to $93.42 by 0641 GMT, after rising to an intraday high of $93.72. Brent crude for July edged down 21 cents to $109.54 but recovered from a low of $109.01, the lowest intraday price since January 25. Brent-WTI spread for July also narrowed to $15.74 after widening to $19.46 on Wednesday, the widest ...

Brent crude slipped to a near four-month low on Thursday as investors shunned riskier assets following turmoil in Greece and the euro zone, while oil supplies could rise as G8 countries may tap emergency reserves ahead of sanctions on Iran in July. Greece faces a possible exit from the euro zone as it failed to form a government to implement austerity measures in exchange for rescue funds from the common currency region. Investors feared Greece's exit could drag down other EU economies. Brent crude for July was down 42 cents at $109.33 by 0453 GMT, after slipping to $109.01, the lowest intraday price since January 25. U.S. crude gained for the first time in five sessions, rising 53 cents to $93.34. "The euro zone crisis can only go one way, that is, Greece leaving the EU on a temporary ...

U.S. Review Look Past the Monthly Volatility and See the Trend This week of economic releases painted a somewhat mixed picture, but the underlying trend still reflects an economy that is growing at a modest pace. The milder-than-usual winter likely brought some activity forward and below-consensus readings are due in part to payback. Housing starts, existing home sales and industrial production all posted disappointing readings in March that are likely not indicative of the underlying trend. Headline retail sales, however, came in more than double the consensus estimate in March, ending the first quarter on a positive note. Early Spring Brings Payback Period The full week of economic releases painted a somewhat mixed picture, but the underlying trend still reflects an economy ...

(Reuters) - Gold edged lower on Thursday, as investors stood on the sidelines and awaited a key Spanish debt auction later in the day amid worries the euro zone debt crisis could flare up again. Concerns about Spain's finances and banking sector pushed up safe-haven U.S. Treasuries and German Bunds in the previous session, and caution prevailed in most markets. Gold, though traditionally seen as a safe haven during times of economic and political turmoil, has moved largely in tandem with riskier assets and against the dollar recently. Spot gold inched down 0.1 percent to $1,639.46 an ounce by 2:27 a.m. EDT. U.S. gold was nearly flat at $1,640.50. "The upside is very heavy because the euro remains under pressure and the weak physical demand isn't helping," said Peter Fung, head of ...

Despite the efforts done by European officials to ease the debt crisis, worries spread in markets after the rise in Spanish 10-year bond yields to 6 percent, coming close to levels which forced Greece, Portugal and Ireland to ask for international bailouts. On the other hand, Bank of Spain published on its website that Spanish banks' borrowing from the ECB skyrocketed by nearly 50% last month. Domestic banks borrowed 227.6 billion euros in March compared to 152.4 billion euros in February. Spanish banks tapped 29% of the aggregate long-term loans offered to euro-area lenders, including the three-year long-term refinancing operation loans which were launched by the ECB since last year. Also, they borrowed more than 60% of the loans received by other euro-zone banks, according to the ...

Forex Morning Briefing : Euro weakness keeps EUR/CHF close to target levels What’s new: Asia: Asian Equities follow US counterparts into negative territory FOREX: EUR/CHF still close to 1.20 after briefly slipping below yesterday BoE: Remains on hold no changes to Asset purchases target Rates in Asia and Indices: EURUSD: 1.3053 – 1.3078. USDCHF: 0.9187 – 0.9206. GBPUSD: 1.5822 - 1.5866. EURJPY: 107.29 – 107.66. USDJPY: 82.16– 82.40. DowJones: 13’060.14 -0.11% NASDAQ: 3'080.50 +0.4% S & P 500: 1'398.08 -0.06% Nikkei: 9’688.45 -0.81% Shanghai: 2'300.64 -0.07% Gold: $ 1'630.10 Crude Oil: $ 103.31 Comments: Markets remain hesitant; after the Fed’s minutes earlier this week caused investors to rethink about the likelihood of further QE from the US Central bank. In the US, major equity ...

Extreme strain in the global economy has given way to something less hair-raising. So does the last investor in "safe-haven" gold, switch out the lights? After a storming start to 2012, bullion prices have lost some of their luster in recent weeks in line with a reassessment of global economic health. Jumbo-sized liquidity taps are off in Europe, while the jury is out on a further round of U.S. quantitative easing. U.S. data shows a slightly improved trajectory, with employment numbers and consumer credit growth highlighted in a key year for President Barack Obama. Treasury yields reflected that, breaking out of the doldrums and raising potential for tighter policy down the road. Given that backdrop it is no surprise that gold has retraced since touching a record $1,920.30 an ounce in ...

(Reuters) - Investors who have not already done so will cash in their first-quarter chips next week and turn their attention to the next three months, during which they will have to do without central bank bellows to blow stocks effortlessly higher. World shares as measured by the MSCI index .MIWD00000PUS are up more than 10 percent since January, after the European Central Bank turned its liquidity taps on full, while Italian and Spanish 10-year borrowing costs have plunged from around 7 percent to 5, though they are now picking up again. The ECB has played the critical part, creating more than a trillion euros of three-year money for banks to feast on, some of which has leached into stock and bond markets. But it is highly unlikely to repeat the process. Other major central banks seem ...

The Week Ahead Highlights Shift in FX drivers may provide support for the USD Budget D-day for Osborne The ECB's tough talk Shift in FX drivers may provide support for the USD This week U.S. Treasury yields broke out of their ranges and rocketed higher. 10-year yields rose nearly 28bps since Monday and advanced above the 200-day sma for the first time since July to reach current levels of around 2.31%. U.S. equity markets rallied significantly as well this week with the S&P 500 closing above 1400 for the first time since 2008 while the Dow Jones Industrial Average traded at levels that have not been seen since 2007. At the same time, the USD gained against its major counterparts most notably against the Japanese yen. This may be the start of a significant shift in FX ...