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India fwd/annualised dlr premia-Oct 20

October 20, 2014 - reuters.com

London gold 1030 fix - Oct 20 - 1241.00 dlrs

October 20, 2014 - reuters.com

EMERGING MARKETS-Stocks recover after Asia surges and data soothes nerves

October 20, 2014 - reuters.com

By Chris Vellacott LONDON, Oct 20 (Reuters) - Emerging market stocks recovered on Monday, helped by positive U.S. economic data and a strong session in Asia following news China's central bank is to pump liquidity into the banking system. The MSCI emerging equities index rose more than 1 percent to trade more than 2 percent above the seven-month lows reached last Thursday. The recovery followed a strong session in Asia which saw the MSCI Asia excluding Japan index climb 1.2 percent, with Chinese markets buoyed by expectations the People's Bank of China is set to inject about 200 billion yuan ($32.7 billion) worth of three-month loans into a number of listed banks. ID:nL3N0SC4PE "It definitely feels like the mood is a lot better. I wouldn't say racing ahead it doesn't feel like we're in a complete all clear. I would say it's a tentative stabilization," said Ilan Solot, a strategist at Brown Brothers Harriman. The Hang Seng Index .HSI closed up 0.2 percent and the China Enterprises Index .HSCE of the leading offshore Chinese listings in Hong Kong rose 0.6 percent. Much of the lift was attributed to nerves calming after a torrid week, largely helped by hints from key central banks such as the U.S. Federal Reserve that rates may stay lower for longer until economic recovery gathers more momentum. A run of positive economic data in the U.S. also lifted the mood. Meanwhile, the price of oil LCOc1 edging higher on Monday, lifted Middle Eastern markets with Dubai .DFMGI leading the charge with a 1.7 percent gain. The Saudi market .TASI gained 0.33 percent. However, Russian assets were weak after ratings agency Moody's cut the country's sovereign debt rating on Friday citing the ongoing crisis in Ukraine. ID:nL3N0SC5XV The rouble RUB= was lower against the dollar after the central bank said it had shifted the boundaries of its floating rouble corridor by 5 kopecks, following market interventions to curb the pace of the currency's decline. ID:nL6N0SF0D8 The Russian currency has been pressured for months by falling oil prices, Western sanctions restricting Russian firms' access to international capital markets, and a stronger dollar. Yields on 10-year treasury bonds RU10YT=RR made a slight gain, up six basis points. Meanwhile stocks were trading lower, with the dollar-based RTS index off by 1 percent. Hopes that the United States Federal Reserve will delay plans to start raising interest rates helped dollar-sensitive emerging markets such as Turkey. Turkey's lira TRY= hovered close to a three-week high against the dollar while the country's main share index .XU100 rose 0.9 percent, also helped by recent declines in oil prices, though investors remain tense about trouble across its southern border with Syria. "The major advantage is the falling oil price which disproportionately helps Turkey but aside from that it's in a tough spot," Solot said. For GRAPHIC on emerging market FX performance 2014, see http://link.reuters.com/jus35t For GRAPHIC on MSCI emerging index performance 2014, see http://link.reuters.com/weh36s For GRAPHIC on MSCI emerging Europe performance 2014, see http://link.reuters.com/jun28s For GRAPHIC on MSCI frontier index performance 2014, see http://link.reuters.com/zyh97s For CENTRAL EUROPE market report, see CEE/ For TURKISH market report, see .IS For RUSSIAN market report, see RU/RUB ) (Editing by Hugh Lawson) ((follow me on twitter @ReutersChrisV. Email: chris.vellacott@thomsonreuters.com; +44)(0)(20 75423987; Reuters Messaging: chris.vellacott.thomsonreuters.com@reuters.net))

Sterling a touch higher, eyes on data, dollar

October 20, 2014 - reuters.com

By Patrick Graham LONDON, Oct 20 (Reuters) - Sterling inched higher against the euro and the dollar on Monday, with its near-term direction set to rest on a round of UK data releases and whether this week sees a revival of a broader dollar rally. Gross domestic product numbers on Friday should prop up a currency plagued by increasing doubts in the solidity of Britain's economic recovery in the face of a worsening outlook in Europe. Before then retail sales numbers, judging by other already released surveys, may support the softer outlook on growth which has led investors to push back expectations for a first rise in interest rates into the second half of next year. Sterling had its biggest loss in eight months against the euro last week on the back of that repricing of expectations on rates. GBPFRA GBPOIS=ICAP 0#FSS: "There may be some support from the GDP numbers on Friday," said Jane Foley, a strategist with Rabobank in London. "But the message from the Bank of England's chief economist on Friday was pretty gloomy: it's going to be very difficult for the UK to raise and the market is I think in that frame of mind. That may put sterling on the defensive against the dollar." In early deals in London on Monday, the pound gained just over 0.1 percent against both the euro and the dollar at respectively 79.18 pence per euro EURGBP= and $1.6115 GBP=D4 . Bank of England chief economist Andrew Haldane said financial markets may be right to bet that the first interest rate hike since 2007 would come in the middle of next year. He also said he was in favour of keeping rates low for longer, given the uncertainties surrounding UK and global economic growth. ID:nL6N0SC0ZB Minutes from the BoE's Oct. 9 meeting, due out on Wednesday, will be watched for more of that dovish tone. Talk among analysts that another member of the nine-strong Monetary Policy Committee might have swung to vote for higher rates has largely evaporated. Two members had backed a rate rise at the previous meeting in September. "The market may well be quite immune to the minutes," Foley said. "The dollar may be the biggest factor this week. A huge number of positions has been cleared out and the dollar is probably going to be in better form this week than last." The more uncertain monetary policy outlook has helped the pound shed almost 7 percent against the dollar over the last three months. Investors are also becoming increasingly wary about political risks in Britain, which they say could have a bearing on investment flows and sterling. The latest polling showed growing support for anti-EU party UKIP, whose leader, Nigel Farage, said he would demand an immediate referendum on European Union membership as his price for supporting any coalition government after a parliamentary election due in May. "Sterling remains vulnerable," said Kit Juckes, a strategist with Societe Generale in London. "With growth having peaked, with fiscal policy set to be tighter after next May's election regardless of who wins, and with no sign (yet) of any upward pressure on inflation from wages, it still seems likely that the later the rate cycle starts, the lower the peak will be." (Editing by Susan Fenton) ((patrick.graham@thomsonreuters.com)(+44207 542 9429)(patrick.graham.thomsonreuters.com@reuters.net)) Keywords: MARKETS STERLING/OPEN

London platinum/palladium 0945 fix - Oct 20

October 20, 2014 - reuters.com

REFILE-GLOBAL MARKETS-World stocks advance on strong data, earnings

October 20, 2014 - reuters.com

(Refiles with date) * Global stocks gain on encouraging U.S. data * Dollar rises against the safe-haven yen * Euro zone bond yields dip By Atul Prakash LONDON, Oct 20 (Reuters) - Global stocks climbed on Monday, with strong U.S. data and encouraging third-quarter earnings easing concerns about the pace of global economic recovery and raising appetite for riskier assets. The MSCI world equity index .MIWD00000PUS , which tracks shares in 45 countries, was up 0.3 percent by 0821 GMT. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS surged 1.2 percent overnight as an upbeat survey of U.S. consumer sentiment on Friday brought some calm to markets after a week of turbulence. The pan-European FTSEurofirst 300 index .FTEU3 fell 0.3 percent, however, as a profit warning by technology company SAP SAPG.DE hit shares in the sector. The Thomson Reuters/University of Michigan index of consumer sentiment rose to its highest in more than seven years in early October, beating expectations. New housing starts were also surprisingly strong last month, suggesting U.S. economic growth remained solid. ID:nL2N0SC0PJ "Calm returns after last week's roller-coaster ride," Saxo Bank trader Andrea Tueni said. "U.S. macro data is reassuring, the earnings season has been quite good so far, and we're getting positive news such as Japan's big pension fund boosting its exposure to equities. "Sentiment remains fragile, but we get the impression that stocks have hit a low." Japan's $1.2 trillion Government Pension Investment Fund -- the world's biggest, with a war chest bigger than the annual output of Mexico's economy -- is likely to raise its allocation for domestic stocks to about 25 percent, people familiar with the process said on Saturday. ID:nL3N0SC664 The stock market also got some support from encouraging U.S. earnings reports. Out of the 81 S&P 500 component companies that have reported third-quarter results, 64.2 percent have beaten expectations, a rate slightly below the average over the past four quarters but better than the past 20 years. On Wall Street, all major stock indexes rose more than 1 percent on Friday, while Japan's Nikkei .N225 surged 4 percent on Monday to post its biggest daily rise since June 2013 on upbeat U.S. data and as a weaker yen helped exporters. The dollar rose against the safe-haven yen JPY= on the encouraging economic numbers and a pushing back of expectations on when U.S. interest rates will begin to rise. News that Japan's pension fund was also likely to boost its foreign asset holdings, spurring demand for foreign currencies, also helped. "There are a number of factors providing some support for risk at the moment, but the big question is how long that lasts," said Ian Stannard, head of European currency strategy at Morgan Stanley in London, citing comments from several policymakers that have helped push back rate hike expectations. Euro zone bond yields dipped as concerns about a slowdown in global growth eased. German 10-year Bund yields DE10YT=TWEB , which set the standard for euro zone borrowing costs, fell 1 basis point to 0.85 percent, while Spanish, Italian and most other yields were down 1-2 basis points on the day. In commodities trading, Brent crude LCOc1 steadied, holding on to gains scored in the previous session that took it above $86 a barrel after U.S. data, with a cut in Saudi-Kuwait oil output providing further support. ID:nL3N0SF216 (Additional reporting by Blaise Robinson in Paris, Jemima Kelly in London and Lisa Twaronite in Tokyo; Editing by Catherine Evans) Keywords: MARKETS GLOBAL/WRAPUP 4

BOJ Nagoya branch head: Rapid FX moves undesirable

October 20, 2014 - reuters.com

TOKYO, Oct 20 (Reuters) - Many companies in the Tokai central Japan region feel that rapid exchange-rate moves, be it yen rises or falls, are undesirable, the Bank of Japan's branch manager overseeing the region's economy said on Monday. "Recent yen moves have been choppy, so it's hard now to judge the effect on the region's economy," Toru Umemori, the BOJ's Nagoya branch manager, told a news conference. (Reporting by Leika Kihara; Editing by Chris Gallagher) ((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net)) Keywords: JAPAN ECONOMY/BOJ NAGOYA

CORRECTED-Sterling set to post biggest weekly loss vs euro since February

October 20, 2014 - reuters.com

(Changes to weekly loss, not gain, in headline and first paragraph of Oct. 17 story) By Jemima Kelly LONDON, Oct 17 (Reuters) - Sterling rose against the euro on Friday but looked set to post its biggest weekly loss against the common currency in eight months after a week in which growth worries - especially in the euro zone - have rattled markets. Weak UK inflation and wage growth data this week prompted investors to push back their expectations of when interest rates would start to rise, helping to drive sterling to a five-week low against the euro on Wednesday EURGBP= . But the threat of political instability in Greece and worries about a return of a euro zone debt crisis saw a sell-off of southern European bonds on Thursday, pushing the common currency lower again. Worries about the health of the euro zone persisted on Friday, with European Central Bank policymakers clashing over what measures should be taken to revive the flailing economy. The euro fell 0.4 percent against sterling to trade at 79.31 pence EURGBP= , more than a penny below its peak of 80.465 pence earlier in the week. "Measures of risk are starting to suggest that the worst of the selloff (for sterling) is behind us ... and from here the pound could recover some more," said Valentin Marinov, head of European currency strategy at Citi. Earlier, Bank of England chief economist Andrew Haldane gave the first clear indication from a BoE policymaker that a recent market push-back of interest rate expectations was warranted. Haldane said financial markets may be right to bet that the first interest rate hike since 2007 would come in the middle of next year. He also said he was in favour of keeping rates low for longer, given the uncertainties surrounding UK and global economic growth. ID:nL6N0SC0ZB Haldane's comments come at a time when money markets suggest expectations for a rise in British rates have shifted to July or later GBPFRA GBPOIS=ICAP 0#FSS: from the first quarter of next year. A number of banks, including UBS and RBS, have also pushed back their rate hike forecasts. Sterling initially fell against the dollar after the comments, hitting a day's low of $1.6030, but later recovered and was last trading flat at $1.6086 GBP= . "The fact that sterling was softer on Haldane's comments was not surprising, even though he was stating what we all generally know and is pretty much in the price anyway, which is that rate hikes are not on the immediate agenda," said Simon Smith, head of research at online broker FxPro. UNCERTAIN OUTLOOK The BoE has said that any rise in interest rates from their historic lows will be dependent on economic data, especially wage growth. BoE Governor Mark Carney also said on Monday the bank's rate-setting committee would have to take into account "a more modest global recovery, particularly if that's the case in Europe". ID:nL6N0S8220 The more uncertain monetary policy outlook has helped the pound shed almost 7 percent against the dollar over the last three months. Investors are also becoming increasingly wary about political risks in Britain, which they say could have a bearing on investment flows and sterling. The latest polling showed growing support for anti-EU party UKIP, whose leader said he would demand an immediate referendum on European Union membership as his price for supporting any coalition government after a parliamentary election due in May. "In the case of sterling, the factors are political risks and the weak performance of the euro zone economies to which the UK economy is highly attached, (which) are increasing its vulnerability," Morgan Stanley analysts said in a note. "Britain's stance concerning the European Union could weaken already slowing inward investment further, which is bad for sterling's valuation." (Additional reporting by Anirban Nag and Patrick Graham; Editing by Gareth Jones) ((jemima.kelly@thomsonreuters.com; +44)(0)(20 7542 7508; Reuters Messaging: jemima.kelly.thomsonreuters@reuters.net)) Keywords: MARKETS STERLING/CLOSE

FOREX-Dollar rises against yen as risk appetite returns

October 20, 2014 - reuters.com

* Return of risk appetite across markets * Dollar up vs yen as Treasury yields pull away from lows * News GPIF may raise foreign asset holdings also helps dollar By Jemima Kelly LONDON, Oct 20 (Reuters) - The dollar rose against the safe-haven yen on Monday as upbeat data and a push-back of interest rate hike expectations restored some risk appetite to financial markets after a bout of jitters over global growth. Wall Street rallied and U.S. Treasury yields rose on Friday after deep losses after a surprisingly strong U.S. consumer sentiment reading and better-than-expected housing numbers that suggested economic growth in the United States was solid. The greenback got an extra boost against the yen on reports that Japan's $1.2 trillion Government Pension Investment Fund (GPIF) will significantly increase its allocation for stocks and boost its foreign asset holdings, in turn spurring demand for foreign currencies. ID:nL3N0SC664 The dollar index, which measures the greenback against a basket of six major currencies, rose 0.1 percent to 85.181 .DXY after dropping to a three-week trough of 84.472 last week. "There are a number of factors providing some support for risk at the moment, but the big question is how long that lasts," said Ian Stannard, head of European currency strategy at Morgan Stanley in London, citing comments from several policymakers that have helped push back rate hike expectations. Boston Federal Reserve President Eric Rosengren told Reuters over the weekend that the recent volatility in financial markets reinforced the need for the Fed to be patient in raising interest rates. And on Friday a top Bank of England policymaker said the bank may keep rates lower for longer. ID:nL2N0SD0OH ID:nL6N0SC0UG "We think that any rebound in the high-beta currencies is still going to provide a good selling opportunity against the dollar," Stannard added. High-beta currencies, such as the Australian and the New Zealand dollars, are sensitive to perceived shifts in global demand. They also fared better on Monday as pessimism over the world economy was tempered and risk sentiment improved. The Australian dollar AUD=D4 climbed 0.2 percent to $0.8757, while its New Zealand counterpart rose 0.3 percent to $0.7937 NZD=D4 . YEN LOWER The dollar rose 0.2 percent against the yen to 107.06 yen JPY= , pulling further away from a five-week low of 105.195 hit last week. The greenback had hit a six-year high at the start of this month, poking above 110 yen - a level at which nearly half of Japanese firms think the government should start defending its currency, according to a Reuters poll - but fell back as growth worries prompted investors to put money into safe-haven assets. ID:nL3N0SA05Z "The dollar could extend its gains to the mid-107 yen level if equity market sentiment in Asia and Europe improve," said Masafumi Yamamoto, a market strategist for Praevidentia Strategy in Tokyo. "The GPIF news is also rare as it touches on figures related to foreign asset allocations and could be leading to further selling of the yen." Taking tips from Friday's rebound on Wall Street, Tokyo's Nikkei .N225 , which hit a five-month trough on Friday, surged 3.5 percent. In focus was whether the equity markets can retain their semblance of calm in the face of coming data. Indicators including September industrial output, retail sales and third quarter GDP will be released in China on Tuesday. ECONCN Other data this week that could have a bearing on global risk sentiment includes U.S. inflation on Wednesday and euro zone and German PMI indexes on Thursday. ECONUS ECONEZ The euro was steady, despite data from the euro zone's biggest economy, Germany, that showed producer prices declining for the 14th consecutive month, highlighting the disinflationary pressures concerning investors and policymakers alike. The single currency was flat against the dollar at $1.2764 EUR=D4 . (Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Andrew Heavens) ((jemima.kelly@thomsonreuters.com)(+44 20 7542 7508)(Reuters Messaging: jemima.kelly.thomsonreuters@reuters.net)) Keywords: MARKETS FOREX

Turkish lira steady at 3-week high as Fed hopes lift risk appetite

October 20, 2014 - reuters.com

ISTANBUL, Oct 20 (Reuters) - Turkey's lira hovered around its three-week high on Monday as expectations the U.S. Federal Reserve will delay rate hikes outweighed tensions still running high on Turkey's southern border with Syria. Investors in emerging markets have become increasingly nervous about a possible rise in U.S. rates, which would make riskier assets less attractive. But Fed officials comments signalling a softening in policy provided some relief. The market's focus this week was on the Turkish central bank's monthly rate setting meeting on Thursday, traders said. All 15 economists polled by Reuters see the bank leaving its main one-week repo rate at 8.25 percent. One predicted a 25-basis-point cut in the overnight lending rate. "In our view, easing the monetary policy will be a risky move for the central bank in this volatile environment. Inflation outlook will also not support easing in the monetary policy," Finansbank economist Deniz Cicek wrote in a note. "Moreover, although geopolitical developments have had limited and temporary effects on the Turkish economy so far, geopolitical risks continue to be significant." Turkey slashed its growth estimates this month and raised its inflation forecast for 2014 and 2015, citing unfavourable conditions in the global economy. ID:nL6N0S31EV Turkey is struggling to control inflation even as its economy slows and conflict worsens in neighbouring countries. The lira TRYTOM=D3 firmed to 2.2434 against the dollar by 0704 GMT from 2.2470 late on Friday, its highest since Sept. 25. The main share index .XU100 rose 0.82 percent to 76,153.20, slightly underperforming the broader emerging markets index .MSCIEF , which was up 1.12 percent. The 10-year benchmark bond yield tTR240724T0=IS inched down to 8.93 percent from Friday's 8.99 percent. (Reporting by Seda Sezer; Editing by Louise Ireland) ((seda.sezer@thomsonreuters.com; +90 212 350 7122;)) Keywords: MARKETS TURKEY/

SNAPSHOT-India stocks, bonds, rupee, swap, call at 0800 GMT

October 20, 2014 - reuters.com

STOCKS .BSESN .NSEI ----------------------- The benchmark BSE index up 1.13 percent and the broader NSE index 1.14 percent higher, gains lead by energy firms after the government's energy reforms, while wins by Prime Minister Narendra Modi's party in two state elections raise expectations of additional reforms. .BO RUPEE INR=D2 -------------- The partially convertible rupee stronger at 61.27/28 per dollar against its Friday's close of 61.44/45, tracking strong Asian currencies and surge in domestic stocks also aid. INR/ GOVERNMENT BONDS IN084024G=CC ------------------------------- The benchmark 10-year bond yield down 2 basis points at 8.37 percent, after government ends diesel controls and raises gas prices on Saturday. Measures should help lower wholesale inflation and reduce government's fiscal subsidies. IN/ INTEREST RATE SWAPS INROIS MIOIS= ------------------------------------- The benchmark five-year swap rate falls 4 bps to 7.50 percent while the one-year rate is 7 bps lower at 8.14 percent. CALL MONEY INROND= -------------------- India's cash rate at 8.10/8.15 percent, higher from Friday's close of 7.10/7.15 percent. (Compiled by Dipika Lalwani) ((dipika.lalwani@thomsonreuters.com; +91-22-6180-7098; Reuters Messaging: dipika.lalwani.thomsonreuters.com@reuters.net)) Keywords: INDIA SNAPSHOT/

TABLE-Foreign trading in South Korean stocks

October 20, 2014 - reuters.com

China c.bank says to advance yuan convertibility

October 20, 2014 - reuters.com

BEIJING, Oct 20 (Reuters) - China aims to quicken the process of making the yuan convertible on the capital account and will allow foreign investors to use the currency to invest in Chinese financial institutions, Central Bank Deputy Governor Hu Xiaolian said on Monday. China will also widen the number of channels for cross-border yuan flows and shift the focus of monetary policy to one that controls the price rather than the quantity of money, Hu said in remarks published on the central bank's website. Her remarks were a reiteration of the central bank's existing stance. (Reporting by Kevin Yao and Koh Gui Qing; Editing by Jacqueline Wong) ((guiqing.koh@thomsonreuters.com; +86 10 6627 1242; Reuters Messaging: guiqing.koh.reuters.com@reuters.net)) Keywords: CHINA ECONOMY/YUAN

Polish president wants euro decision after 2015 vote -report

October 20, 2014 - reuters.com

WARSAW, Oct 20 (Reuters) - Poland should decide on its path towards euro accession following parliamentary elections due in the autumn of 2015, President Bronislaw Komorowski was quoted as saying on Monday. The largest economy in Europe's emerging east is obliged by the terms under which it joined the European Union in 2004 to adopt the single currency at some point. The government has not set a target date, however, and says it will not do so until it has seen the final shape of new euro zone institutions. Opinion polls show a majority of Poles oppose joining the euro, whose members are grappling with stagnating growth and low inflation after a years-long debt crisis. Komorowski has called previously for an acceleration of the debate on adopting the currency. "We have to ... answer the question if remaining outside the euro zone one may assure that Poland plays a significant role in the international arena," he was quoted as saying by daily Rzeczpospolita on Monday. "In my opinion this is impossible." The president said Poland should prepare for a discussion on the euro, which "should lead to a decision already after next year's parliamentary elections". He did not elaborate on what should be decided, but said the discussion might entail a "potential date". Komorowski said Poland should meet the Maastricht criteria for euro entry, which would mean reducing its fiscal deficit to below the EU ceiling of 3 percent of gross domestic product. ID:nL6N0SE0Z9 "If we want to have a choice, we first have to fulfil the Maastricht criteria, which are important from the point of view of stability and development of our economy, even without joining the euro zone." Euro membership would require Poland to amend its constitution, which enshrines the zloty as its currency, but Prime Minister Ewa Kopacz's centre-right government does not now have the two-thirds majority in parliament needed to do so. "The role of the president is to show what is most important from the point of view of Poland, even if these are difficult issues," Komorowski said. Finance Minister Mateusz Szczurek said in August that Poland is keeping the door open to euro zone membership, but that joining would not boost the country's status because it is already a stable and developed economy. ID:nL5N0QS239 Poland's constitution says the president co-operates on foreign policy issues with the government. But any decisions will ultimately be up to the government and parliament. (Reporting by Marcin Goettig; Editing by Catherine Evans) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND EURO/PRESIDENT

Sri Lanka rupee forwards edge down on importer dollar demand

October 20, 2014 - reuters.com

COLOMBO, Oct 20 (Reuters) - Sri Lankan rupee forwards weakened on Monday due to importer dollar demand, while the spot rupee was untraded, with dealers saying the central bank prevented banks through moral suasion from trading the cash currency above 130.70. Three-day forwards, actively traded in the absence of spot, were at 130.80/90 per dollar at 0635 GMT compared with Friday's close of 130.80/85. The spot currency LKR=LK was neither traded nor quoted. It ended at 130.60/80 on Friday. "Importer (dollar) demand is there, but the spot is not quoted as moral suasion is seen," said a currency dealer asking not to be named. Dealers said the market was waiting for cues from the 2015 budget, to be presented on Oct. 24. The central bank held the key policy rates steady as expected before the market opened on Friday, a day after its head said a reversal of the falling trend in t-bill yield was a signal of where the authorities want rates to be. ID:nL3N0SB2R5 The central bank, at its policy rate announcement on Friday, said short-term money market rates have broadly stabilised, while long-term lending rates are adjusting downwards after some initial volatility in the domestic money market in response to the monetary policy measures taken in September. The rupee has been under pressure since the central bank announced steps to boost credit to the private sector in its September monetary policy review. Central Bank Governor Ajith Nivard Cabraal said last week there would be a greater tendency for the rupee to appreciate gently in light of the improvements in the external account. The central bank in the last week of September limited the spot range to between 130.40 and 130.50 to prevent any sharp falls amid heavy selling in stocks and a pullback by foreign investors from government securities. Overseas investors sold a net 29.4 billion rupees ($225.3 million) worth of government securities in the four weeks through Oct. 15, data from the central bank showed. Sri Lanka's stock index .CSE recovered from an early fall and was up 0.02 percent at 7,235.91 as of 0646 GMT. Turnover was 463.6 million rupees, with 21.7 million shares changing hands. (1 US dollar = 130.6000 Sri Lankan rupee) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee) ((ranga.sirilal@thomsonreuters.com; +94-11-232-5540; Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net ; www.twitter.com/rangaba)) Keywords: MARKETS SRI LANKA/

South Africa's rand, govt bonds steady as market awaits budget

October 20, 2014 - reuters.com

JOHANNESBURG, Oct 20 (Reuters) - South Africa's rand traded in a narrow range against the dollar on Monday, with domestic focus firmly on Finance Minister Nhlanhla Nene's medium term budget statement for an update on the health of the economy. Nene is likely to cut the GDP growth forecast for 2014, largely due to crippling wage strikes earlier in the year, and will probably predict a wider budget deficit than seen in February. The rand ZAR=D3 was at 11.0780 versus the dollar at 0646 GMT, little changed from Friday's close at 11.0800. Government debt was also largely flat, with the yield for the paper due in 2026 - the benchmark for the secondary market - quoted flat at 8.115 percent. In addition to Nene's speech, which was likely to give clues on possible changes to the government's borrowing plans, CPI inflation data also due out on Wednesday would provide guidance on the outlook for interest rates, analysts said. "The market tends to expect the worst and then rally after the speech as the minister always manages to present an upbeat story," RMB analyst Deon Kohlmeyer said. (Reporting by Stella Mapenzauswa; Editing by Ed Stoddard) ((stella.mapenzauswa@thomsonreuters.com; +27117753161; Reuters Messaging: stella.mapenzauswa.thomsonreuters.com@reuters.net)) Keywords: MARKETS SAFRICA/CURRENCY

Czech Republic - Factors To Watch on Oct 20

October 20, 2014 - reuters.com

UPDATE 1-Russian rouble moves lower after Moody's rating cut

October 20, 2014 - reuters.com

(Adds detail throughout) MOSCOW, Oct 20 (Reuters) - The rouble weakened against both the dollar and the euro on Monday, extending a dramatic slide that has seen the currency reach new record lows, after Moody's downgraded Russia's sovereign debt rating. The Russian currency has been pressured for months by falling oil prices, Western sanctions restricting Russian firms' access to international capital markets and a stronger dollar. The central bank says it has spent over $13 billion defending the rouble since the start of the month. At 0635 GMT the rouble was 0.47 percent weaker at 40.94 against the dollar RUBUTSTN=MCX and 0.42 percent weaker at 52.21 against the euro. EURRUBTN=MCX That left the currency 0.44 percent weaker at 46.01 against the dollar-euro basket RUS=MCX the central bank uses to gauge the rouble's nominal exchange rate. Moody's Investors Service cut Russia's sovereign debt rating to 'Baa2' from 'Baa1' after market close on Friday, becoming the second ratings agency to cut Russia's ratings this year. ID:nL3N0SC5XV The central bank said early on Monday it had conducted 86.83 billion roubles ($2.12 billion) worth of forex interventions to defend the rouble on Oct. 16 and that it had shifted the rouble's trading band by a further 5 kopecks. The bank automatically steps in to defend the rouble once it reaches the upper limits of its trading band, moving the band by 5 kopecks every time it has spent $350 million in interventions. Russian shares edged cautiously higher in early trade, with Moody's rating cut taking the shine off bullish sentiment on global markets which had sent Asian markets surging earlier in the day. The dollar-denominated RTS index .IRTS was flat at 1,073 points, while its rouble-based peer MICEX .MCX traded 0.7 percent higher at 1,394 points. For rouble poll data see FXRUB FXEURRUB FXRUS For Russian equities guide see RU/EQUITY For Russian treasury bonds see 0#RUTSY=MM Russia in graphics: http://link.reuters.com/dun63s (Reporting by Alexander Winning, Lidia Kelly and Jason Bush; Writing by Jason Bush; Editing by Lidia Kelly) ((jason.bush@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: jason.bush.reuters.com@reuters.net)) Keywords: RUSSIA MARKETS/ROUBLE

INDICATORS - Kazakhstan - Oct 20

October 20, 2014 - reuters.com

BOJ Osaka branch head: Weak yen positive for western Japan firms

October 20, 2014 - reuters.com

TOKYO, Oct 20 (Reuters) - The benefits of a weak yen on the economy outweigh the costs in the Kinki region of western Japan, the head of the central bank's Osaka branch said on Monday. The yen's decline has boosted profits at big manufacturers in the region as well as companies in the leisure industry as it lured more foreign tourists, Atsushi Miyanoya, the Bank of Japan's Osaka branch manager, told a news conference. The BOJ's Osaka branch overseas the Kinki western Japan region, which is home to big electronic makers like Panasonic. (Reporting by Leika Kihara; Editing by Chris Gallagher) ((leika.kihara@thomsonreuters.com; +813-6441-1828; Reuters Messaging: leika.kihara.reuters.com@reuters.net)) Keywords: JAPAN ECONOMY/BOJ OSAKA

African Markets - Factors to watch on Oct 20

October 20, 2014 - reuters.com

UPDATE 2-Vietnam PM sees strong 2015 GDP growth, hurdles ahead

October 20, 2014 - reuters.com

* PM sees inflation in check, faster growth * Inefficiency, debt, weak sentiment remain * China maritime actions hurt development - PM (Releads, adds quotes, details) By Ho Binh Minh HANOI, Oct 20 (Reuters) - Vietnam expects economic momentum to pick up next year but inefficiency, bad debt and weak domestic sentiment will keep a lid on growth, the country's prime minister said on Monday. The Southeast Asian nation expects economic growth of 6.2 percent in 2015, faster than the targeted 5.8 percent this year. After a long struggle with runaway prices, Vietnam plans to keep inflation at 5 percent in 2015, compared with a government projection of below 5 percent this year, Prime Minister Nguyen Tan Dung told the National Assembly in a televised opening session. "The macro economy and major economic balances are not sustainable," Dung said, citing a high state budget deficit, fast rising debt and slow growth in aggregate demand and bank credit. "Economic growth has made a step towards recovery but the business environment and productivity, efficiency and competitiveness of the economy remain low." Dung's comments are in line with those of many independent economists, who say strong exports and a booming manufacturing sector are driving an economy otherwise constrained by structural woes, such as a wasteful state sector, stubborn bad debts and subdued domestic spending. After growing 5.42 percent in 2013, the economy has been expanding faster this year. Third quarter annual growth quickened to 6.19 percent from 5.42 percent in the second quarter and 5.09 percent in the first three months, data showed. Others are not quite so bullish, however. ANZ bank in a report last week maintained its forecast of annual growth at 5.6 percent this year and the World Bank in July cut its forecast of 2014 GDP growth to 5.4 percent from 5.5 percent. That was based on weak consumption, low confidence in the private sector, high rates of non-performing loans in banks and debt exceeding equity in state-owned enterprises. CHINA THREAT Dung said the $171 billion economy was also facing a slow recovery in the real estate market and involved in a territorial dispute with China which has strained bilateral ties. China's action has "seriously threatened peace, stability and the socio-economic development of the country", he said. Some economists reckon the effects of the dispute in May - when China moved a $1 billion oil rig unannounced into a stretch of the South China Sea that Hanoi claims is its exclusive economic zone - could trim 1 percent off growth this year. Assembly deputies are scheduled to hold a closed-door hearing on the South China Sea development during the session. The consumer price index in September rose 2.25 percent from December 2013, the slowest year-to-date pace in a decade, Dung said. Earlier this month, the World Bank revised down its forecast for Vietnam's inflation in 2014 to 4.5 percent, from 6.0 percent projected previously. Bad debts rose to 3.9 percent of bank loans at the end of August from 3.61 percent at the end of 2013, according to the government report to the legislature. Foreign debt is forecast to rise to 39.9 percent of gross domestic product in 2014, from 37.3 percent in 2013, while the annual trade surplus was revised up to $1.5 billion, from a surplus of $0.5 billion forecast previously, the report said. Parliament will discuss and may approve the government's socioeconomic targets for 2015 during its autumn session due to end in late November. Vietnam's VN Index .VNI gained slightly on Monday after Dung's speech, closing the morning session up 1.1 percent at 591.76 points, after six straight sessions of falls. (Editing by Martin Petty and Jacqueline Wong) ((ho.minh@thomsonreuters.com)(+844 3825 9623)(Reuters Messaging: ho.minh.thomsonreuters.com@reuters.net)) Keywords: VIETNAM ECONOMY/

BRIEF-Elbit Systems anticipates extraordinary finance expenses in Q3

October 20, 2014 - reuters.com

Oct 20 (Reuters) - Elbit Systems Ltd ESLT.TA : * Anticipates extraordinary finance expenses in third quarter 2014 * Says this increase in finance expenses resulted primarily from the accelerated depreciation of the Israeli Shekel * Estimates the impact will be in the range of $15-$20 million and will have a corresponding adverse impact on the quarter's net profit * Source text for Eikon ID:nPn4hLW5s * Further company coverage ESLT.TA ((Bangalore Newsroom; +1 646 223 8780))

Russian rouble weaker vs dollar at market opening

October 20, 2014 - reuters.com

MOSCOW, Oct 20 (Reuters) - The Russian rouble opened weaker against the dollar on Monday, following a downgrade of Russia's sovereign debt rating by Moody's Investors Service. At 0605 GMT the rouble was 0.36 percent weaker at 40.90 against the dollar RUBUTSTN=MCX and 0.33 percent weaker at 52.17 against the euro. EURRUBTN=MCX (Reporting by Alexander Winning; Writing by Jason Bush) ((jason.bush@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: jason.bush.reuters.com@reuters.net)) Keywords: RUSSIA MARKETS/ROUBLE

S.Korean shares enjoy biggest daily gain in 11 months; won firmer

October 20, 2014 - reuters.com

(For the midday report, please click ID:nL3N0SF16A ) SEOUL, Oct 20 (Reuters) - South Korean shares soared on Monday, producing their largest one-day percentage gain in 11 months as better-than-expected U.S economic data sparked a relief rally in equity markets worldwide. The Korea Composite Stock Price Index (KOSPI) .KS11 climbed 1.55 percent to close at 1,930.06 points. It was the biggest one-day rise since Nov. 15, 2013. The South Korean won KRW= firmed on Monday, supported by demand for the local currency as offshore players bought back oversold stocks. Foreign investors bought a net 26.2 billion won ($24.73 million) of shares on the main bourse on Monday, snapping a 12-day selling streak where they repatriated a net 2.4 trillion won ($2.27 billion) worth. The local currency KRW=KFTC was quoted at 1,059.6 to the dollar at the conclusion of onshore trade, compared to Friday's closing rate of 1,065.9. (Reporting by Joonhee Yu; Editing by Richard Borsuk) ((joonhee.yu@thomsonreuters.com; 822 3704 5643; Reuters Messaging: joonhee.yu.thomsonreuters.com@reuters.net)) Keywords: MARKETS SOUTHKOREA/

DIARY- Turkey - to Dec 24

October 20, 2014 - reuters.com

India's finance ministry wants to reimpose curbs on gold imports -Economic Times

October 20, 2014 - reuters.com

NEW DELHI, Oct 20 (Reuters) - India's Finance Ministry has written to the central bank to consider reimposing some restrictions on gold imports after inbound shipments surged in the last few months, widening the trade deficit, the Economic Times reported on Monday. The central bank eased some gold import rules in May by allowing seven more private agencies to ship in the precious metal, driving a sharp jump in overseas buying despite a record import duty of 10 percent. A 450 percent rise in gold imports expanded the trade deficit to an 18-month high of $14.25 billion in September, creating concerns for the government, an unidentified finance ministry official told the Economic Times. Gold is India's second-biggest expense on imports after oil, and shipments of the metal tend to jump ahead of key festivals in October. The Finance Ministry and the central bank, the Reserve Bank of India, could not immediately be reached for comment. Indian gold traders and jewellers had hoped the new government of Prime Minister Narendra Modi would lower the import duty, following election campaign statements that any action on gold should take into account the interests of the public and traders. But Trade Minister Nirmala Sitharaman said in September there was no immediate plan to cut the gold import duty. ID:nL3N0RB35H (Reporting by Krishna N Das and Neha Dasgupta; Editing by Clarence Fernandez) ((Krishna.Das@thomsonreuters.com; +91-11-4178-1023, +91-98711-18314; Reuters Messaging: Krishna.Das.thomsonreuters.com@reuters.net, https://twitter.com/krishnadas56)) Keywords: INDIA GOLD/IMPORTS

BRIEF-Norilsk Nickel says to sell African operations to BCL Ltd

October 20, 2014 - reuters.com

Oct 20 (Reuters) - Gmk Noril'skiy Nikel' Oao GMKN.MM * Norilsk Nickel and BCL Ltd entered into definitive agreements for sale of African operations to BCL * Total expected consideration for assets payable by BCL to Norilsk Nickel amounts to $337 million payable in cash * In addition, BCL will assume all attributable outstanding debt and environmental and rehabilitation liabilities associated with each asset * Assets are 50 pct participation interest in Nkomati Nickel and Chrome mine and 85 pct stake in Tati Nickel mining company Source text for Eikon: ID:nHUG1MB3TQ Further company coverage: [BML.AX GMKN.MM] ((Bangalore Newsroon +918067491130)) Keywords: GMKNORIL'SKIYNIKEL'OAO/BRIEF

Russian assets seen falling after Moody's cuts Russia rating

October 20, 2014 - reuters.com

MOSCOW, Oct 20 (Reuters) - Russian assets are likely to fall at market opening on Monday after Moody's Investors Service cut Russia's sovereign debt rating, citing the prolonged crisis in Ukraine. The rouble RUB= has been hammered by risk aversion towards Russian assets due to the Ukraine conflict, sanctions restricting Russian firms' access to international capital markets and a dramatic decline in oil prices, which have reached multi-year lows in recent weeks. On Friday, a slight recovery in crude oil prices and increased demand for the Russian currency due to monthly tax payments led the rouble to recover slightly. ID:nL6N0SC106 The rouble firmed 0.15 percent to 40.72 against the dollar on Friday RUBUTSTN=MCX and 0.24 percent to 51.99 versus the euro EURRUBTN=MCX . But late on Friday, Moody's rating agency cut Russia's sovereign debt rating, becoming the second agency to do so this year after Standard and Poor's cut Russia's rating to just a notch above junk status in April. ID:nL3N0SC5XV Moody's said the Ukraine crisis was weighing on Russia's medium-term growth prospects. "There is a risk of the rouble sliding in connection with the Moody's decision," Natalia Samoilova, head analyst at Golden Hills-Kapital investment house in Moscow, said in a note. She added, however, that the rouble should receive some support from exporters, who need to transfer their foreign-currency revenues into roubles to pay monthly taxes this week. Analysts also point out that many expected the rating cut. "Obviously Russia's credit profile is deteriorating as a result of weak growth, sanctions, lower oil prices, and heightened geopolitical concerns," said Tim Ash, head of emerging markets research at Standard Bank in London. Russian indexes closed in the green on Friday, but analysts say gains on both the rouble-denominated MICEX exchange .MCX and the dollar-based RTS .IRTS could easily be reversed in early trade on Monday. For rouble poll data see FXRUB FXEURRUB FXRUS For Russian equities guide see RU/EQUITY For Russian treasury bonds see 0#RUTSY=MM Russia in graphics: http://link.reuters.com/dun63s (Reporting by Lidia Kelly; Editing by Alexander Winning) ((lidia.kelly@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: lidia.kelly.reuters.com@reuters.net)) Keywords: RUSSIA MARKETS/

Metro confident for Xmas as Media-Saturn sales improve

October 20, 2014 - reuters.com

BERLIN, Oct 20 (Reuters) - Germany's Metro AG MEOG.DE said it was optimistic for the crucial Christmas trading period as it saw an improvement in sales at its struggling consumer electronics unit in the July to September quarter. Sales rose a like-for-like 0.7 percent to 15.1 billion euros($19.3 billion) in the final quarter of its 2013/14 fiscal year due to gains at all its units - cash-and-carry stores, consumer electronics, Real hypermarkets and Kaufhof department stores. "With Christmas approaching, Metro Group is well prepared and optimistically entered the current quarter," it said in a statement as it confirmed an outlook for 2013/14 earnings before interest and tax of 1.750 billion euros based on constant currencies. Metro, Europe's fourth-biggest retailer which operates a sprawling empire of 2,200 outlets in 31 countries, has been trimming its portfolio to focus on its cash and carry and consumer electronics stores. Metro reports full results on Dec. 16. (1 US dollar = 0.7839 euro) (Reporting by Emma Thomasson) ((+49 30 2888 5081)(Reuters Messaging: emma.thomasson.thomsonreuters.com@reuters.net)) Keywords: METRO RESULTS/

India Morning Call-Global Markets

October 20, 2014 - reuters.com

EQUITIES NEW YORK - U.S. stocks extended their rebound from this month's bruising selloff on Friday, giving the S&P 500 its best day in over a week, as worries about the U.S. earnings outlook eased, but the S&P 500 still posted its fourth straight week of declines. The Dow Jones industrial average .DJI rose 263.17 points, or 1.63 percent, to 16,380.41, the S&P 500 .SPX gained 24 points, or 1.29 percent, to 1,886.76 and the Nasdaq Composite .IXIC added 41.05 points, or 0.97 percent, to 4,258.44. For a full report, click on .N - - - - LONDON - Britain's top equity index rebounded from 15-month lows on Friday as concerns eased over the state of the U.S. economy, while Tullow Oil TLW.L benefited from a broker upgrade. The blue-chip FTSE 100 .FTSE index, which had fallen some 5 percent in the first four days of this week to reach 15-month lows, closed up by 1.9 percent at 6,310.29 points. For a full report, click on .L - - - - TOKYO - Japan's Nikkei share average soared 3.3 percent on Monday morning and is on track to post the biggest daily rise in more than a year after Wall Street took heart on Friday from upbeat U.S. data, while the weaker yen lifted exporters such as Toyota Motor Corp 7203.T and Honda Motor Co 7267.T . The Nikkei share average .N225 rose 482.98 points to 15,015.49 in mid-morning trade to recover most of the losses posted last week For a full report, click on .T - - - - HONG KONG - Hang Seng Index .HSI is trading 0.48 percent higher. For a full report, click on .HK - - - - FOREIGN EXCHANGE SYDNEY - The dollar gained on Monday after upbeat data restored some calm to the financial markets, prompting equities to rally back from deep losses and triggering a rise in Treasury yields. The greenback got a further lift against the yen after reports that Japan's $1.2 trillion Government Pension Investment Fund (GPIF) could boost foreign asset holdings, seen spurring demand for foreign currencies. For a full report, click on USD/ - - - - TREASURIES NEW YORK - U.S. Treasuries prices fell on Friday for a second straight day, reversing a rally earlier in the week, as a gauge of American consumer attitudes jumped and U.S. and European stock markets rose. Benchmark 10-year notes US10YT=RR , which rose in price by as much as 3 points on Wednesday on fears over the global economy, were last off 10/32 on Friday to yield 2.190 percent after touching a high of 2.229 percent. For a full report, click on US/ - - - - COMMODITIES GOLD SINGAPORE - Gold ticked lower on Monday after two straight weekly gains, with strong U.S. economic data allaying fears over a slowdown in the global economy, supporting equities and dimming bullion's safe-haven appeal. Spot gold XAU= had eased 0.2 percent to $1,235.20 an ounce by 0030 GMT, slipping for a third session. The metal has gained nearly 4 percent in the past two weeks and hit a one-month high of $1,249.30 on Wednesday. For a full report, click on GOL/ - - - - BASE METALS SYDNEY - London copper inched down on Monday after climbing in the last session from its lowest in around six months, hit by worries over the end of U.S. stimulus. Three-month copper on the London Metal Exchange CMCU3 had dropped 0.14 percent to $6,631.75 by 0111 GMT, after closing the Friday session at $6,640.00. For a full report, click on MET/L - - - - OIL NEW YORK - Oil prices rose slightly on Friday, bouncing from near four-year lows even while marking a fourth straight weekly loss, as investors bought back into a market they said was oversold, and as fighting in Iraq increased political risk. Brent for December LCOc1 rose 34 cents to settle at $86.16 a barrel. The November Brent contract expired on Thursday. For a full report, click on O/R (Compiled by Indulal PM) ((indulal.p@thomsonreuters.com; +91-22-6180-7183; Reuters Messaging: indulal.p.thomsonreuters.com@reuters.net)) Keywords: MORNINGCALL INDIA

MOVES-Dubai exchange DGCX says CEO Anderson steps down due to ill health

October 19, 2014 - reuters.com

DUBAI, Oct 19 (Reuters) - Dubai Gold and Commodities Exchange (DGCX) said on Sunday its chief executive officer, Gary Anderson, had stepped down due to ill health. DGCX said in a statement that Gaurang Desai, its chief operating officer since inception in 2005, will act as an interim CEO. According to Anderson's LinkedIn profile, he had been head of the exchange since April 2012. (Reporting by Archana Narayanan; Editing by David French) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net)) Keywords: MOVES DGCX/CEO

MIDEAST STOCKS - Factors to watch - October 19

October 19, 2014 - reuters.com

DUBAI, Oct 19 (Reuters) - Here are some factors that may affect Middle East stock markets on Sunday. Reuters has not verified the press reports and does not vouch of their accuracy. INTERNATIONAL/REGIONAL * GLOBAL MARKETS-Stocks rally as global selloff abates, bonds fall MKTS/GLOB * Oil bucks downtrend to eek out small gain O/R * Gold posts weekly gain on economic fears, U.S. Fed view GOL-RTRS * US-led coalition jets strike Kobani, Islamic State shells hit Turkey SY-IQ-WAR * Houthis, Sunni supporters clash in central Yemen YE-VIO * Yemen restarts main oil export pipeline after repairs YE-CRU * Iraqi parliament approves defence, interior ministers -state TV IQ-POL * Two rival Libyan governments claim to control oil policy LY-CRU-POL * New Gulf projects to hit $180 bln this year despite oil price -study MEAST-REAL-CRU EGYPT * Egypt signs with six international firms to dredge new Suez Canal EG-SHIP * Egypt central bank keeps rates on hold, monitoring risks from global growth jitters EG-INT * U.S. democracy watchdog quits Egypt as political noose tightens EG-US-VOTE * Egyptian pound steady on official, weaker on black market EG-FRX SAUDI ARABIA * Saudi oil pipeline briefly set alight after shots fired at patrol SA-PPL * Saudi British Bank Q3 net profit rises 25.2 pct 1060.SE * Saudi Aramco trades first fuel oil derivative on Platts SA-CRU-DRV UNITED ARAB EMIRATES * Arabtec says to launch huge Egypt housing project by year-end ARTC.DU * Dubai resort Atlantis signs increased $1.1 bln loan deal AE-LOAN KUWAIT * Kuwait says no impact on output or plans from oil price drop KW-CRU (Compiled by Dubai newsroom) ((dubai.newsroom@reuters.com)) Keywords: MIDEAST FACTORS

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