Please wait...

Reuters News

REFILE-Barrick to sell 50 pct in Papua New Guinea unit to China's Zijin

May 26, 2015 - reuters.com

(Corrects paragraph 2 to fix typo) May 26 (Reuters) - Canadian miner Barrick Gold Corp ABX.TO said it would sell 50 percent stake in its unit that manages the Porgera gold mine in Papua New Guinea to China's Zijin Mining Group Co Ltd 601899.SS for $298 million in cash. The unit, Barrick Niugini, owns 95 percent in the Porgera mine and Papua New Guinea owns the rest. After the sale, Zijin and Barrick will jointly control Barrick Niugini, the Canadian miner said in a statement on Tuesday. ID:nMKWgnqyCa (Reporting by Sneha Banerjee in Bengaluru; Editing by Kirti Pandey) ((sneha.banerjee@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1130; ; Reuters Messaging: sneha.banerjee.thomsonreuters.com@reuters.net)) Keywords: BARRICK GOLD JOINTVENTURE/ZIJIN

As election fever rises, Danish PM promises billions in new spending

May 26, 2015 - reuters.com

COPENHAGEN, May 26 (Reuters) - Denmark's Prime Minister Helle Thorning-Schmidt declared on Tuesday that the country's economic crisis had ended and promised a broad $5.7 billion spending package, in a week political pundits have expected her to call a general election. The prime minister did not call for a poll during a press conference but commentators say she has several more opportunities to do so this week. Instead she announced a 39 billion Danish crowns ($5.70 billion) package of spending on healthcare, the elderly, children's day care, the environment and the police up until 2020. ($1 = 6.8371 Danish crowns) (Reporting by Copenhagen bureau, editing by Terje Solsvik) ((sabina.zawadzki@thomsonreuters.com; +45 33 96 96 50, +45 20 54 86 88;)) Keywords: DENMARK ELECTION/

India fwd/annualised dlr premia-May 26

May 26, 2015 - reuters.com

PRECIOUS-Gold drops more than 1 percent as dollar rally continues

May 26, 2015 - reuters.com

* Dollar at one-month high vs currency basket * More U.S. data eyed * Yellen's recent comments reinforce tightening bias (Updates throughout, changes dateline from SINGAPORE) By Clara Denina LONDON, May 26 (Reuters) - Gold fell more than 1 percent on Tuesday as the dollar extended gains following stronger U.S. inflation data and comments from Federal Reserve Chair Janet Yellen that reinforced the central bank's tightening bias on monetary policy. Spot gold XAU= dropped to a two-week low of $1,192.60 an ounce earlier and was down 1 percent at $1,193.73 by 1003 GMT. U.S. gold futures for June delivery GCcv1 were down $10.40 at $1,193.60 an ounce. The dollar continued its strong run, up 1 percent against a basket of leading currencies, after Fed Yellen said on Friday that interest rates will be raised this year as the U.S. economy was set to bounce back from an early-year slump. ID:nL1N0YD1IH "The dollar is back in vogue, it's turned after last week's strong CPI data, Yellen comments, and there should be more strong data this week," Societe Generale analyst Robin Bhar said. "For the dollar to weaken again, you're going to need some pretty dire U.S. data and the risk is that data is going to get stronger because we are out of the winter season." A stronger dollar makes gold more expensive for holders of other currencies, while higher U.S. interest rates would dent demand for the non-interest-paying metal, increasing the opportunity cost of holding it. Gold's inverse correlation with the dollar has started to strengthen again, and weaken against yields, Barclays said in a note. "We maintain the view that the third quarter is likely to be the weakest quarter for gold, given that we expect the Fed to start increasing rates in September, but the potential downside is likely to be limited," it said. Bullion traders will be keenly eyeing U.S. economic data due later in the day, including durable goods for May and consumer confidence for April, for clues on the strength of the economy and how it would impact the Fed's monetary policy. ECONUS The focus was also on Greece, which said on Monday it needed aid urgently to be able to pay a loan instalment due next week. ID:nL5N0YG19A Any worsening of the Greek debt crisis could potentially trigger demand for gold coins and bars. The metal is usually seen as a hedge against political and financial risk, although the impact on demand for metals from wider political worries is usually short lived. Silver XAG= fell 2.1 percent to a two-week low of $16.70 an ounce. Platinum XPT= dropped 1.7 percent to $1,128.50 an ounce and palladium XPD= slipped 0.6 percent to $781 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore; Editing by Alison Williams) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

BRIEF-Tech Mahindra says active client count stood at 767 vs 629 in FY 2014

May 26, 2015 - reuters.com

May 26 (Reuters) - Tech Mahindra Ltd TEML.NS : * Total headcount as of March 31, 2015 at 103,281; added 13,840 professionals during the year * Active client count stood at 767 versus 629 in FY 2014 * Software headcount stood at 72,952, bpo at 22,693 and support at 7,636 * Q4 results were impacted by macroeconomic factors like cross currency headwinds and salary increases" * Source text:http://bit.ly/1JToORG * Further company coverage TEML.NS ((Bengaluru Newsroom; +91 80 6749 1130))

Swiss franc rallies against struggling euro on Greek debt woes

May 26, 2015 - reuters.com

LONDON, May 26 (Reuters) - The Swiss franc rose to its highest in nearly three weeks against the euro on Tuesday, as worries about Greece's debt problems drove investors to seek safe-haven assets. The euro shed 0.5 percent to trade at 1.0324 francs EURCHF= , its lowest since May 7, as peripheral euro zone bonds came under fresh selling pressure while core government bonds rallied. The flight to safety saw Switzerland's 10-year bond yields CH10YT=TWEB drop into negative territory for the first time. Greece must repay four loans totaling $1.76 billion to the IMF next month. Athens has the money to make monthly wage and pension payments this week, a government spokesman said on Monday. But he was less direct when asked about the June 5 payment, reiterating the government's stance that it has the responsibility to pay all its obligations. (Reporting by Anirban Nag; Editing by John Geddie) ((anirban.nag@thomsonreuters.com; +44 20 7542 8399 ; Reuters Messaging: anirban.nag.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/SWISS FRANC

Turkish lira weakens as polls give mixed picture on election

May 26, 2015 - reuters.com

ISTANBUL, May 26 (Reuters) - The Turkish lira slid against the dollar on Tuesday under pressure from global dollar gains and political uncertainty as another poll suggested the ruling AK Party may have to form a coalition government after a June 7 parliamentary election. The lira TRYTOM=D3 has weakened 11 percent against the U.S. currency this year, making it one of the worst performing emergency market currencies, and stood at 2.6325 at 0949 GMT, down from 2.6162 on Monday. A survey by Turkish pollster Andy-AR put AKP support at 41.9 percent, the main opposition Republican People's Party (CHP) at 25.8 percent, the nationalist MHP at 16 percent and the pro-Kurdish HDP at 10.7 percent, above the 10 percent threshold needed to enter parliament. It was the third survey in a week indicating the AK Party might lose its parliamentary majority. ID:L5N0YG134 But another poll, by Konsensus on Tuesday, showed it capable of forming a single-party government with 43.9 percent support and the HDP on 9.7 percent. If the HDP falls short of the threshold its parliament seats will largely go to the AK Party. "Turkish markets are recently performing slightly weaker than EM peers, as recent polls increased the odds of a coalition government," said Erkin Isik, a strategist at TEB-BNP Paribas. "However, a small decline in HDP votes, below the 10 percent national threshold would mark a continuation of one-party government, without power to change constitution, which will likely spur a positive short-term market reaction," he added. The surveys generally indicate that the election will push Tayyip Erdogan's dream of an all-powerful presidency further from his reach, and usher in a period of turbulence as he seeks to maintain his dominance. ID:nL5N0YC4MP Shares were largely flat, with the main share index .XU100 dipping 0.1 percent to 84,483.63 points. Among shares in focus were newly crowned soccer champions Galatasaray GSARY.IS , which tumbled 10.07 percent, having risen sharply earlier in the month in anticipation of its league success. The benchmark 10-year bond yield tTR120325TA=IS rose to 9.28 percent from 9.18 percent on Monday. (Writing by Daren Butler; Editing by Ece Toksabay and Robin Pomeroy) ((daren.butler@thomsonreuters.com; +90-212-350 7122; Reuters Messaging: daren.butler.thomsonreuters.com@reuters.net)) Keywords: MARKETS TURKEY/

UPDATE 4-Oil drops to $65 on U.S. shale outlook, dollar

May 26, 2015 - reuters.com

* U.S. weekly oil rig count decline slows-Baker Hughes * U.S. producers to ramp up output at current price - Goldman * Dollar rally weighing on oil could run further-Morgan Stanley * OPEC meets next week; Iran sees no output change (Adds details on U.S. rig count, quote) By Alex Lawler LONDON, May 26 (Reuters) - Oil fell to around $65 a barrel on Tuesday, pressured by the possibility that U.S. shale oil producers could increase drilling activity and by a stronger dollar. U.S. drillers cut the number of rigs by just one last week, data showed on Friday, and Goldman Sachs said prices were at a level that would spur activity. The dollar could rally further, Morgan Stanley said, adding to a growing list of headwinds crude faces that include rising OPEC supply. Brent crude LCOc1 was down 45 cents at $65.07 a barrel at 0948 GMT, while U.S. crude CLc1 , also known as WTI, was 43 cents lower at $59.29. "The main factor weighing on prices is the significantly appreciating U.S. dollar," said Carsten Fritsch, analyst at Commerzbank. "What is more, the decline in drilling activity in the U.S. that has been ongoing for 23 weeks appears to have stopped." ID:nL1N0YD1A9 More drilling in the United States would lessen the prospect of a tighter oil market in coming months, one of the factors that have helped Brent rise from a near six-year low close to $45 in January. "We believe that should West Texas Intermediate prices remain near $60 a barrel, U.S. producers will ramp up activity, given improved returns," Goldman said in a report. ID:nL3N0YH22C A stronger dollar makes dollar-priced commodities more expensive for buyers using other currencies, and tends to weigh on oil prices. The dollar hit a one-month high against a basket of major currencies .DXY on Tuesday. "The USD downward correction is complete," Morgan Stanley said in a report. "A stronger dollar would only reinforce our near-term concerns for oil prices, especially Brent." <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ CHART-Brent vs USD: http://link.reuters.com/dyx74w Return of oil/FX trading poses OPEC dilemma: ID:nL1N0Y61G5 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> Brent collapsed from $115 in June 2014 due to ample supplies in a decline that deepened after OPEC last November dropped its policy of cutting output to support prices, in a bid to slow higher-cost competing supply sources such as U.S. shale. Taking turns in dominating sentiment since then are concerns about ample supplies currently and the prospect of a tighter market ahead as supply growth from higher-cost producers slows. The Organization of the Petroleum Exporting Countries gathers on June 5. On Sunday, Iran said OPEC was unlikely to change its production ceiling at the meeting. ID:nL5N0YF045 (Editing by Alison Williams) ((alex.lawler@thomsonreuters.com; +44 207 542 4087; Reuters Messaging: alex.lawler.reuters.com@reuters.net)) Keywords: MARKETS OIL/

UPDATE 1-IMF: China's yuan no longer undervalued but further reforms needed

May 26, 2015 - reuters.com

* Says China should have 'floating exchange rate' in 3 yrs * Policy easing needed if 2015 GDP growth below 6.5 pct * IMF expects China growth of 6.8 pct this year (Recasts, adds details) By Koh Gui Qing BEIJING, May 26 (Reuters) - China's yuan currency is no longer undervalued after its recent substantial appreciation, but the government should quicken reforms to get to having "a floating exchange rate", the International Monetary Fund said on Tuesday. The IMF has previously labeled the yuan CNY=CFXS as "modestly undervalued", despite the currency's gradual appreciation since a landmark 2005 revaluation. The yuan has gained sharply against most non-dollar currencies in recent months. "While undervaluation of the renminbi was a major factor causing the large imbalances in the past, our assessment now is that the substantial real effective appreciation over the past year has brought the exchange rate to a level that is no longer undervalued," the IMF said. In a reference to how China still has a large trade surplus, despite yuan appreciation, the Fund said Beijing's "still-too-strong external position highlights the need for other policy reforms - which are indeed part of the authorities' agenda - to reduce excess savings and achieve sustained external balance." The IMF said China still faced risks from unsustainable credit and investment growth, and it urged the government to quicken reforms, including making the yuan more flexible. "We believe that China should aim to achieve an effectively floating exchange rate within 2-3 years," the IMF said. The comments came in a statement issued after a visiting IMF team completed a consultation with Chinese officials. SUPPORT FOR GDP GROWTH? China should step up fiscal support for its economy if growth dips below 6.5 percent this year, or prepare to take steps to rein in credit and investment if growth surprises on the upper side, the fund said. The IMF expects China's annual economic growth to be 6.8 percent this year, before slowing further to 6.25 percent in 2016, it said in a report. "If incoming data suggest that growth is likely to exceed 7 percent, the authorities should take advantage of the opportunity to reduce vulnerabilities faster," the IMF said. "If instead growth looks set to dip below 6.5 percent, then fiscal policy should be eased." It said that fiscal stimulus, if needed, should be on-budget and rely on measures that protect the vulnerable, support rebalancing, and are consistent with the reform agenda. China's economy grew 7.4 percent in 2014. It had annual growth of 7 percent in the first quarter and recent data showed growth has lost further momentum into the second quarter, increasing the risk that full-year growth may dip below the government's targeted 7 percent. (Writing by Kevin Yao; Editing by Richard Borsuk) ((kevin.yao@thomsonreuters.com; +8610 6627 1215; Reuters Messaging: kevin.yao.thomsonreuters.com@reuters.net)) Keywords: IMF CHINA/GROWTH

EU's Moscovici says Greek negotiations must speed up

May 26, 2015 - reuters.com

DUBLIN, May 26 (Reuters) - Negotiations between representatives of Greece and its creditors need to be speeded up because of liquidity problems in the struggling European Union state, a senior EU official said on Tuesday. "The process is much better, the substance is improving but we're not there yet," EU Economic Affairs Commissioner Pierre Moscovici told journalists in Dublin, when asked about talks between Greece, the International Monetary Fund, the European Central Bank and the European Commission. "We are aware of the liquidity problems in Greece, this is why it so important that the negotiations speed up," he said. (Reporting by Padraic Halpin; Writing by Conor Humphries; Editing by Catherine Evans) ((conor.humphries@thomsonreuters.com; +35315001518; Reuters Messaging: conor.humphries.thomsonreuters.com@reuters.net)) Keywords: EUROZONE GREECE/MOSCOVICI

Ugandan shilling weakens on a surge of dollar demand

May 26, 2015 - reuters.com

KAMPALA, May 26 (Reuters) - The Ugandan shilling UGX= weakened on Tuesday after demand for dollars from banks, manufacturers and energy companies shot up partly driven by requirements to meet end-month obligations. At 0841 GMT, commercial banks quoted the shilling at 3,030/3,040, down from Monday's close of 3,005/3,015. "There's a biting shortage of dollars while at the same time we have interbank players covering short positions," said Faisal Bukenya, head of market making at Barclays Bank. Some traders have partly attributed the slowdown in inflows of hard currency to civil conflicts in Burundi and South Sudan, two of Uganda's key export markets. The shilling is now 8.7 percent weaker against the greenback this year and some traders expect it to weaken further due to worries over the country's growing current account deficit. Traders say the central bank is uncomfortable with the shilling weakening far past the psychologically important level of 3,000 where it has hovered for about two months. The bank injected dollars several times into the market earlier this year, helping to pull back the shilling from its all-time record low of 3,116/3,126 hit on March 12. UGX Spot Rate..... UGX= Ugandan Shilling Money Guide.... UGX/1 Calculated Cross Rates.......... UGXX= Deposits..................... UGXDEPO= Deposits & Forwards............. UGXF= Uganda Equities Guide....... UG/EQUITY Uganda All Share Index........ .ALSIUG Shilling background ..... UGX/BKGDINFO Ugandan Debt Guide............ UG/DEBT All Uganda Bonds............. 0#UGTSY= Uganda T-Bills.............. 0#UGTSYS= Uganda Benchmark............. 0#UGBMK= Central Bank ................ BOUGINDEX Ugandan Contributor Index.... UG/CONT1 Uganda Coffee Prices....... COFFEE/UG01 ($1 = 3,030.0000 Ugandan shillings) (Reporting by Elias Biryabarema; Editing by James Macharia) ((elias.biryabarema@thomsonreuters.com; Tel. +256772887571; Reuters Messaging: elias.biryabarema.thomsonreuters.com@reuters.net)) Keywords: UGANDA MARKETS/

Danish govt to issue fcasts on Tuesday as election fever grows

May 26, 2015 - reuters.com

COPENHAGEN, May 26 (Reuters) - Denmark's government is due to publish fresh economic forecasts on Tuesday at 1230 GMT, an economy ministry source told Reuters, a step which many political pundits see as coming ahead of a call for a general election. The forecasts were expected to be issued on Thursday. Pundits have said Prime Minister Helle Thorning-Schmidt was likely to call for an election this week, when forecasts, a positive report on the economy as well as government measures were all due. (Reporting by Erik Matzen; writing by Sabina Zawadzki) ((sabina.zawadzki@thomsonreuters.com; +45 33 96 96 50, +45 20 54 86 88;)) Keywords: DENMARK ECONOMY/

India has scope to ease monetary policy - chief economic adviser

May 26, 2015 - reuters.com

NEW DELHI, May 26 (Reuters) - India's central bank has room to further ease its monetary policy, Chief Economic Adviser Arvind Subramanian told reporters on Tuesday. The Reserve Bank of India is widely expected to lower interest rates for a third time this year, at its policy review on June 2, after retail inflation INCPIY=ECI cooled to a four-month low of 4.87 percent in April. (Reporting by Manoj Kumar; Editing by Malini Menon) ((rajeshkumar.singh@thomsonreuters.com; +91-11-4178-1056; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) Keywords: INDIA ECONOMY/RATES

S&P sees no immediate impact of Polish presidential vote on rating

May 26, 2015 - reuters.com

WARSAW, May 26 (Reuters) - Rating agency Standard and Poor's said on Tuesday the result of Poland's presidential election had no immediate impact on the country's rating, but the uncertain outcome of parliamentary elections in the autumn increases policymaking's volatility. "Given more recent rhetoric from the ruling and opposition parties, further loosening of the government's fiscal stance may be likely before Polish citizens cast their votes in October," S&P said. "As we have previously stated, any drastic policy reversals regarding fiscal consolidation or macroeconomic management could lead us to revise our outlook on Poland to stable," it said. (Reporting by Marcin Goettig; Editing by Wiktor Szary) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND ELECTION/RATING S&P

UPDATE 1-S.Africa c.bank sees "high likelihood" of rate hikes in next few meetings

May 26, 2015 - reuters.com

(Adds background, review on FX trading) JOHANNESBURG, May 26 (Reuters) - There's a high likelihood that South Africa's central bank will increase interest rates at its next few meetings, one of its deputy governors said on Tuesday. The South African Reserve Bank (SARB) left interest rates unchanged as expected last Thursday but signalled that rising oil prices, above inflation wage settlements and a weaker rand currency could stoke inflation and bring a rate rise in coming months. ID:nL5N0YC3KA "(There's a) high likelihood of us hiking interest rates in the next few meetings," Deputy Governor Kuben Naidoo told reporters on Tuesday, after the SARB released its annual bank supervision report. The SARB has kept its benchmark repo rate steady at 5.75 percent since July last year as Africa's most advanced economy struggles with power shortages, with state utility Eskom ESCJ.UL unable to cope with demand. Naidoo said the central bank was conducting a review on foreign exchange trading, days after the competition watchdog accused several banks of price-rigging in currency markets, but had so far "not found anything untoward". South Africa is investigating several global banks for allegedly fixing foreign exchange trades. ID:nL5N0YA35L (Reporting by TJ Strydom; Editing by James Macharia) ((tiisetso.motsoeneng@thomsonreuters.com; +27 11 775 3122; Reuters Messaging: tiisetso.motsoeneng.thomsonreuters.com@reuters.net)) Keywords: SAFRICA CENBANK/RATES

Polish aversion towards euro at all-time high - pollster

May 26, 2015 - reuters.com

WARSAW, May 26 (Reuters) - Polish opposition to dropping the zloty currency and adopting the euro has risen to 70 percent of the population, the highest ever share, a survey by polling institute CBOS showed on Tuesday. Only 25 percent were in favour of joining the euro zone, CBOS said, a day after presidential elections were won by Law and Justice party candidate Andrzej Duda, who has stated his opposition to Poland becoming a euro zone member in the near future. In a previous poll last November, 68 percent of Poles were against and 24 percent favoured the euro, with the rest undecided. The highest number of Poles supporting the idea of joining the euro zone was in early 2002, before Poland joined the European Union. Poland, the biggest economy in eastern Europe, is preparing to join the euro zone but has not yet decided when it would do so. Public opinion means it is unlikely to join any time soon. The CBOS poll was conducted between April 16 and 22. (Reporting by Marcin Goclowski; Editing by David Holmes) ((marcin.goclowski@thomsonreuters.com; +48 22 6539724; Reuters Messaging: marcin.goclowski.reuters.com@thomsonreuters.net)) Keywords: POLAND POLITICS/EURO

Greek signal on meeting debt obligations encouraging - Germany

May 26, 2015 - reuters.com

BERLIN, May 26 (Reuters) - It is encouraging that Greece has signalled its desire to meet looming debt obligations, including a 300 million euro payment to the IMF which falls due on June 5, a senior German official said on Tuesday. "I find it encouraging, if it is true, that the Greeks signalled yesterday their desire to repay the 300 million euros to the IMF on June 5," the official said. "I find it encouraging because it means that Greece has understood that without the IMF this won't work," he added. "I think there is reason to believe that we will not be talking about a default situation around June 5, neither before or immediately thereafter." (Reporting by Noah Barkin) ((noah.barkin@thomsonreuters.com; +49 (0) 30 2888 5091; Reuters Messaging: noah.barkin.reuters.com@reuters.net)) Keywords: EUROZONE GREECE/GERMANY

IMF: China should step up fiscal policy if GDP growth slows sharply

May 26, 2015 - reuters.com

BEIJING, May 26 (Reuters) - China should step up fiscal support for its economy if growth dips below 6.5 percent this year, or prepare to take steps to rein in credit and investment if growth surprises on the upper side, the International Monetary Fund said on Tuesday. The IMF expects China's annual economic growth to be 6.8 percent this year, before slowing further to 6.25 percent in 2016, it said in a report. "If incoming data suggest that growth is likely to exceed 7 percent, the authorities should take advantage of the opportunity to reduce vulnerabilities faster," the IMF said. "If instead growth looks set to dip below 6.5 percent, then fiscal policy should be eased." It said that fiscal stimulus, if needed, should be on-budget and rely on measures that protect the vulnerable, support rebalancing, and are consistent with the reform agenda. The IMF said China still faced risks form unsustainable credit and investment growth and urged the government to quicken reforms, including making the yuan CNY=CFXS more flexible. "We believe that China should aim to achieve an effectively floating exchange rate within 2-3 years," the IMF said. China's economy grew 7.4 percent in 2014. It had annual growth of 7 percent in the first quarter and recent data showed growth has lost further momentum into the second quarter, increasing the risk that full-year growth may dip below the government's targeted 7 percent. (Reporting by Koh Gui Qing; Editing by Richard Borsuk) ((kevin.yao@thomsonreuters.com; +8610 6627 1215; Reuters Messaging: kevin.yao.thomsonreuters.com@reuters.net)) Keywords: IMF CHINA/GROWTH

Sterling hits 2-1/2 month high against a weaker euro

May 26, 2015 - reuters.com

LONDON, May 26 (Reuters) - Sterling rose to a 2-1/2 month high against a struggling euro on Tuesday, with the single currency weighed down by Greece's debt problems and interest rate differentials moving in favour of the British pound. Yields on safe-haven German Bunds DE10YT=RR , the euro zone benchmark, dropped as jitters from the peripheral bond markets made investors nervous and pushed them towards safety. The yield gap between the 10-year UK Gilt GB10YT=RR and the German Bund widened to 135 basis points from around 123 bps on May 15, driving sterling higher, traders said. GVD/EUR The euro fell 0.4 percent to 70.645 EURGBP=D4 , its lowest since March 12 and down 3.2 percent against the British pound so far this month. The euro has been hit in recent days by a senior European Central Bank official flagging the possibility of aggressive bond buying and continuing worries over Greece's ability to make repayments to creditors. "Things look grim for the euro right now," said Marshall Gittler, head of global FX strategy at IronFX Global. "It is questionable whether Greece can make the payment due to the IMF on June 5, followed by another large payment on June 12. It will be touch and go." Greece must repay four loans totalling $1.76 billion to the IMF next month. Athens has the money to make monthly wage and pension payments this week, a government spokesman said on Monday. But he was less direct when asked about the June 5 payment, reiterating the government's stance that it has the responsibility to pay all its obligations. ID:nL5N0YG19A Sterling, though, underperformed a buoyant U.S. dollar which extended gains after a stronger than expected rise in U.S. core consumer prices in April revived bets that inflation may reach the Federal Reserve's 2 percent target. If the upturn continues, it could allow the Fed to consider raising interest rates this year, providing a boost to the dollar. Sterling fell 0.4 percent against the dollar GBP=D4 to $1.5405, well short of the five-month high of $1.5815 struck on May 14 and its lowest in two weeks. Last week sterling hit a seven-year high against a trade-weighted basket of currencies =GBP , boosted by strong data that bolstered a view that the British economy was outperforming its peers. "In the absence of any positive U.S. data surprises, we expect sterling/dollar to trade in a consolidated range, with the cross finding support around the $1.54 handle," ING analysts said in a note. (Reporting by Anirban Nag; Editing by David Goodman) ((anirban.nag@thomsonreuters.com)(+44207 542 8399)(anirban.nag.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/STERLING

UPDATE 1-Polish jobless rate falls to 11.2 pct in April, as expected

May 26, 2015 - reuters.com

(Adds survey-based unemployment rate) WARSAW, May 26 (Reuters) - Poland's registered unemployment rate fell to 11.2 percent in April compared to 11.7 percent the previous month, the state statistics office said on Tuesday. Analysts polled by Reuters had expected the rate at 11.2 percent. The statistics office said that the number of registered unemployed stood at 1.782 million in April. The data also showed the unemployment rate as measured by the Labour Force Survey (BAEL) rose to 8.6 percent in the first quarter of 2015 from 8.1 percent in the fourth quarter of 2014. (Reporting by Jakub Iglewski; Writing by Marcin Goettig; Editing by Marcin Goclowski) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND ECONOMY/UNEMPLOYMENT

S.African central bank says conducts review on FX trading

May 26, 2015 - reuters.com

JOHANNESBURG, May 26 (Reuters) - The South African central bank is conducting a review on foreign exchange trading, its deputy governor Kuben Naidoo said on Tuesday, days after the competition watchdog accused several banks of price-rigging in currency markets. "So far in the review, we have not found anything untoward," Naidoo told reporters. (Reporting by TJ Strydom; Editing by James Macharia) ((tiisetso.motsoeneng@thomsonreuters.com; +27 11 775 3122; Reuters Messaging: tiisetso.motsoeneng.thomsonreuters.com@reuters.net)) Keywords: SAFRICA CENBANK/FXPROBE

Sri Lanka cbank allows rupee spot to fall near record low

May 26, 2015 - reuters.com

COLOMBO, May 26 (Reuters) - Sri Lanka's central bank allowed the spot currency to fall by 20 cents to a near record low on Tuesday but prevented it from falling further amid importer dollar demand and lack of exporter greenback conversions, dealers said. The central bank allowed the spot rupee LKR=LK to fall 0.15 percent or 20 cents to 133.90, near its record low of 134.10, hit on June 28, 2012, Thomson Reuters data showed. Since the central bank defended the currency, dealers moved to forwards because the spot rate did not reflect the real market price, dealers said. Some dealers said the depreciation was not adequate and the market had adjusted to trade forwards after the central bank was seen preventing the currency from falling sharply. The central bank has allowed the spot to fall 0.75 percent, or by 1 rupee since April 30 to account for broad gains in the dollar and rising credit demand in a low rate environment. "Some banks are desperate for dollars and going behind exporters begging to convert their dollars," a currency dealer said on condition of anonymity. However, exporters have been holding dollars as it is cheaper for them to borrow cheaper rupee loans for their operations locally in a lower interest rate regime, dealers said. Dealers said the currency would face pressure until either dollar inflows pick up or interest rates rise. The spot rupee has fallen around 2.1 percent so far this year, according to Thomson Reuters data. Actively traded three-month forwards traded at 136.90 per dollar at 0751 GMT, compared to Monday's close of 136.55/70. Two-month forwards were unchanged at 135.50/80 per dollar and one-month forwards were steady at 134.70/90, as the central bank prevented the currency from falling, dealers said. However, a central bank official on condition of anonymity told Reuters that the bank regulator only intervenes in the spot market and never fixes prices on the forwards. Dealers also said the dollars are sold between 138.50/139.00 at some authorised foreign exchange dealers outside banks. In the stock market, the benchmark index .CSE traded 0.11 percent firmer at 7,293.12 as of 0746 GMT. Turnover stood at 659.8 million Sri Lankan rupees ($4.93 million). ($1 = 133.9000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Sunil Nair) ((shihar.aneez@thomsonreuters.com)(+94-11-232-5540)(Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net twitter:@shiharaneez)) Keywords: MARKETS SRI LANKA/

FOREX-Dollar back on upward track, hits eight-year high vs yen

May 26, 2015 - reuters.com

* Dollar index hits 1-mth high, dollar/yen scales 2-mth peak * Euro stuck below $1.1000, Greek concerns persist * U.S. data including durable goods next test for dollar bulls (Recasts after start of European trade) By Patrick Graham WARSAW, May 26 (Reuters) - The dollar rose 1 percent against a basket of currencies on Tuesday, extending gains since a round of improved inflation data last Friday and driving the euro below $1.09 for the first time in a month. Against the yen, it broke through longer-term resistance to hit an eight-year high of 122.76 yen and a number of analysts were optimistic of a push back towards 12-year highs below $1.05 per euro hit in March. In the first proper trade in London since a long holiday weekend, some pointed to growing nerves over Greece, as well as a fall back in German government bond yields that has made the dollar relatively more attractive compared to the euro. But whether the U.S. currency is ready for an attack on parity with the euro in the weeks ahead is likely chiefly to depend on U.S. economic data improving after a disappointing first quarter. "I think this has turned around and the dollar is back on a bullish trend," said Ian Stannard, head of European FX strategy with Morgan Stanley in London. "The adjustment has now been completed and the dollar can now react to any positive news. Dollar yen breaking through the top of the range is an important event." The dollar index .DXY last traded at 96.956 after reaching a one-month high of 97.109. It stood at $1.0906 per euro, just off a high of $1.0885 and up 0.6 percent on the day. Doubts over whether the U.S. Federal Reserve can raise interest rates this year have been at the heart of a rough few weeks for the dollar and Fed Chair Janet Yellen steadied the ship on Friday by reinforcing the U.S. central bank's tightening bias. ID:nL1N0YD1IH But the first indications of economic growth in April have also been mildly disappointing, even as underlying inflation showed some signs of life. Durable goods data as well as a flash PMI sentiment indicator are due later on Tuesday and not everyone was so optimistic as to what they would show. "With data feeding into Q2 GDP showing some signs of weakness, the risk may be on the downside for USD on a disappointment which would validate market concerns on slowing," Citi strategist Josh O'Byrne said in a morning note. Against the yen, the dollar touched a two-month high of 121.79, edging closer to an eight-year peak above 122.04. "It's a dollar-driven market right now, rather than a yen-focused one. Yellen made it clear that the Fed will hike rates and under such conditions the question for participants is what currency to sell," said Bart Wakabayashi, head of forex at State Street in Tokyo. "It appears that shorting the yen has gathered momentum once the dollar rose above 121 yen." (Additional reporting by Shinichi Saoshiro in TOKYO; Editing by Andrew Heavens) ((patrick.graham@thomsonreuters.com)(+44207 542 9429)(patrick.graham.thomsonreuters.com@reuters.net)) Keywords: MARKETS FOREX/

Polish jobless rate falls to 11.2 pct in April, as expected

May 26, 2015 - reuters.com

WARSAW, May 26 (Reuters) - Poland's registered unemployment rate fell to 11.2 percent in April compared to 11.7 percent the previous month, the state statistics office said on Tuesday. Analysts polled by Reuters had expected the rate at 11.2 percent. The statistics office said that the number of registered unemployed stood at 1.782 million in April. (Reporting by Jakub Iglewski; Writing by Marcin Goettig; Editing by Marcin Goclowski) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND ECONOMY/UNEMPLOYMENT

UPDATE 1-Russian rouble slips vs dollar, flat vs euro

May 26, 2015 - reuters.com

(Adds detail, updates prices) MOSCOW, May 26 (Reuters) - Russia's rouble traded weaker against the dollar on Tuesday but was little changed against the euro, as the U.S. currency surged on global markets. At 0745 GMT, the rouble was 0.6 percent weaker against the dollar at 50.25 RUBUTSTN=MCX but had gained almost 0.1 percent to trade at 54.82 versus the euro EURRUBTN=MCX . The dollar was 1 percent stronger against a basket of major currencies .DXY on Tuesday, benefiting from comments on Friday by Federal Reserve Chair Janet Yellen that the U.S. central bank was poised to raise interest rates this year. FRX/ Brent crude oil LCOc1 , an important driver for Russian assets, was trading 0.3 percent lower, pressured by the stronger dollar. It held above $65 a barrel, however. Tax payments by Russian companies kept the rouble's losses against the dollar in check. The last large monthly tax, profit tax, falls due on Thursday. The central bank on Tuesday kept the limit at its one-week forex repo auction at $100 million for the third week in a row. It has slashed the limit on the instrument from as much as $3 billion in early April, as the rouble has rallied. The rouble is up around 18 percent against the dollar this year, rising partly as demand for foreign currency has eased as the peak of foreign debt repayments by Russian companies and banks in the first half of the year has passed. Russian share indexes were mixed on Tuesday, reflecting moves in the rouble. The dollar-denominated RTS index .IRTS was down 0.1 percent to 1,040 points, while its rouble-based peer MICEX .MCX traded 0.3 percent higher at 1,660 points. For rouble poll data see reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=RUB= 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, editing by Jason Bush and Lidia Kelly) ((alexander.winning@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: alexander.winning.thomsonreuters.com@reuters.net)) Keywords: RUSSIA MARKETS/ROUBLE

Swiss 10-year government bond yield hits -0.034 percent

May 26, 2015 - reuters.com

ZURICH, May 26 (Reuters) - The yield on Switzerland's 10-year government bond fell to -0.034 percent on Tuesday, the first time in nearly one month it has been in negative territory. Switzerland auctioned 10-year government bonds with a negative yield last month, in what some banks said was the first time a government has effectively made investors pay for the privilege of lending to it for such a long period. ID:nL5N0X52TR (Reporting by Rupert Pretterklieber and Katharina Bart) ((zurich.newsroom@thomsonreuters.com; +41 58 306 7336;)) Keywords: SWISS TREASURY/

INDICATORS - Kazakhstan - May 26

May 26, 2015 - reuters.com

India Morning Call-Global Markets

May 26, 2015 - reuters.com

EQUITIES NEW YORK - U.S. stocks were closed on Monday for a public holiday. For a full report, click on .N - - - - LONDON - Britain's share markets were closed on Monday for a public holiday. For a full report, click on .L - - - - TOKYO - Japan's Nikkei share average edged down on Tuesday morning, snapping a seven-day winning streak as investors took profits after the recent gains made on optimism over the economy's recovery and higher shareholder returns. The Nikkei 225 .225 dropped 0.1 percent to 20,395.69 by mid-morning, flitting between positive and negative territory. For a full report, click on .T - - - - HONG KONG - Hang Seng Index .HSI is up 1.4 percent. For a full report, click on .HK - - - - FOREIGN EXCHANGE SYDNEY - The dollar held near one-month highs against a basket of major currencies early on Tuesday, having remained bid in a session made sluggish by public holidays in the United States and Britain. The dollar index .DXY last traded at 96.381, not far from a high of 96.475 set late in the Asian session on Monday, when dollar bulls were still cheering comments from Federal Reserve Chair Janet Yellen For a full report, click on USD/ - - - - TREASURIES NEW YORK - U.S. Treasuries markets were closed on Monday for a public holiday. For a full report, click on US/ - - - - COMMODITIES GOLD SINGAPORE - Gold was stuck in a tight trading range above $1,200 an ounce on Tuesday, as the dollar firmed near a one-month peak against a basket of major currencies on prospects of higher U.S. interest rates this year. Spot gold XAU= was steady at $1,206 an ounce by 0037 GMT. The metal was little changed in the previous session, as liquidity was thin due to U.S. and British holidays. For a full report, click on GOL/ - - - - BASE METALS SINGAPORE - London copper on Tuesday climbed away from three-week lows as markets resumed after a long weekend, buoyed by comments from a Federal Reserve official that soothed concerns about an imminent rise in U.S. interEst rates. Three-month copper on the London Metal Exchange CMCU3 rose 0.8 percent to $6,212 a tonne by 0143 GMT, paring losses of more than 1.5 percent on Friday. It found support around the 30-day moving average at $6,200, having plumbed its weakest since late April at $6,143 a tonne in the previous session. The most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 trimmed 1 percent gains to trade at 44,870 yuan ($7,234) a tonne, up half a percent. For a full report, click on MET/L - - - - OIL SINGAPORE - Crude oil prices were broadly unchanged in early trading on Tuesday, as firm demand supported and ample supply dragged, but analysts said there were signs that a recent rally was running out of steam. Front-month Brent crude prices LCOc1 were up 6 cents to $65.58 per barrel by 0120 GMT. U.S. crude prices CLc1 were up 16 cents at $59.88 a barrel. For a full report, click on O/R (Compiled by Rafael Nam) ((swati.bhat@thomsonreuters.com; twitter.com/swatibhat22; +91-22-61807353; Reuters Messaging: swati.bhat.thomsonreuters.com@reuters.net)) Keywords: MORNINGCALL INDIA/

MIDEAST STOCKS - Factors to watch - May 26

May 26, 2015 - reuters.com

DUBAI, May 26 (Reuters) - Here are some factors that may affect Middle East stock markets on Tuesday. Reuters has not verified the press reports and does not vouch for their accuracy. INTERNATIONAL/REGIONAL * GLOBAL MARKETS-Asian shares slip, dollar stands tall MKTS/GLOB * MIDEAST STOCKS-Gulf markets little moved but Saudi's Ma'aden surges; Egypt slips ID:nL5N0YG1FH * Oil prices steady but indications rally running out of steam O/R * PRECIOUS-Gold holds tight near $1,200 as dollar firms ID:nL3N0YH069 * Islamic State faces battle in Iraq, U.S. reassures Abadi ID:nL5N0YG13F * Turkey says in deal with U.S. on air support for Syria rebels ID:nL5N0YG2CA * Iran to raise oil output capacity by 170,000 bpd from new fields by March 2016 -IRNA ID:nL5N0YG1JR * Houthis suffer first serious setback in south Yemen fighting -residents ID:nL5N0YG1O4 * Stalling economy hurts Turkey's AK Party ahead of election ID:nL5N0YG1NA * Iran will need to spend most of any post-sanctions windfall at home ID:nL5N0YE0B3 * Iraqi bank to open five more branches in bet on future ID:nL5N0YG1HD EGYPT * Egypt's Carbon Holding eyes $4 bln loan by for petchem project ID:nL5N0YG1JP * Egyptian developer Palm Hills raises $212 mln in share issue ID:nL5N0YG174 * Egypt denies Arabtec project to build a million homes has stalled ID:nL5N0YG0FA SAUDI ARABIA * Tens of thousands turn up for funeral of Saudi suicide attack victims ID:nL5N0YG1U1 * Saudi Cement says board proposes H1 cash dividend of 3 riyals/share ID:nL5N0YG1NZ * Saudi Gulf Airlines plans to begin flights at start of November ID:nL5N0YG1IB UNITED ARAB EMIRATES * Dubai's bourse to add trading-at-last session ID:nL5N0YG1ET * UAE April bank lending growth picks up to 8.4 pct y/y; M3 slows ID:nL5N0YG1B1 * Abu Dhabi Islamic Bank eyes UAE expats as industry growth slows ID:nL5N0YG17C * Abu Dhabi's Gulf Capital says eyes four deals in Egypt ID:nL5N0YG110 QATAR * QEWC, Mitsubishi to build $3.2 bln Qatar power, water plant ID:nL5N0YG06Z (Compiled by Dubai newsroom) ((dubai.newsroom@reuters.com)) Keywords: MIDEAST FACTORS/

Australia's gold miners drive M&A revival

May 26, 2015 - reuters.com

By James Regan SYDNEY, May 26 (Reuters) - Gold miners are spearheading a wave of merger and acquisition activity in Australia, riding a rebound in local gold prices to pounce on projects promising quick growth. In the first signs of life since the country's mining boom went bust three years ago, companies are buying assets from international rivals tightening their belts, and partnering with fellow Australian miners. "Everyone is looking for assets that enable them to grow. We've seen more M&A in Australia in 2015 than in the past five years," Ian Murray, chairman of Perth-based Gold Road Resources Ltd GOR.AX told Reuters, referring broadly to the level of interest in the sector. Progressive central bank interest rate cuts aimed at knocking down the Australian dollar and falling labour and mining costs are adding fuel to the frenzy. Gold output in the world's second-biggest producing country after China reached a decade high last year and is tipped to rise further in 2015. Evolution Mining EVN.AX , snapped up Barrick Gold's ABX.TO Cowal mine on Monday for $550 million, giving it a large low-cost mine and putting it ahead of Northern Star Resources NST.AX to be the no. 2 Australia-listed gold miner. ID:nL1N0YG00R A bidding war for the mine attracted 17 different parties, two sources familiar with the process said. U.S-dollar gold prices XAU= are down 37 percent since a late 2011 peak, but Australian dollar gold hit a two-year high in February and is still up 10 percent since early October. "The confluence of big overseas miners looking to repatriate to their home bases and strong indicators such as a weaker Aussie dollar is driving the market further into M&A activity," said Gavin Wendt, an analyst with MineLife consultants. "Add in cheap labor post the boom and a vibrant mid-tier gold sector and it's not hard to see why things are accelerating." Northern Star remains in a position to make "value accretive acquisitions" after buying four mines from Barrick and Newmont Mining Corp NEM.N , according to Chief Executive Bill Beament. DEALS PICK UP Over the lean years, when a strong local currency and high costs trimmed margins, miners skimped on exploration, leaving sparse opportunity to grow organically. So far this year there have been some 26 announced deals in gold mining worth more than $1.7 billion, compared with about $2.2 billion over the previous two years, according to Reuters data. Newcrest Mining Ltd's NCM.AX half-million-ounces-per-year Telfer mine could also go on the block this year, after managing director Sandeep Biswas said in February it was time to time to consider "alternative ownership options". ID:nL4N0VM7XE Evolution tipped it was looking for more mines after paying $230 million in April to acquire two lodes from Luxembourg-based La Mancha Group International BV, which will contribute A$112 million ($88 million) to the Cowal deal. "The lens we are looking through at every opportunity that comes across our desk is whether it will improve the quality of our portfolio," Evolution Executive Chairman Jake Klein told Reuters. Evolution will also pay A$9 million for 19.9 percent of Phoenix Gold PGX.AX , which is accelerating exploration in the Western Australia Goldfields district, where the majority of Australia's 284 tonnes of gold was mined last year. "Assets are being sold at a low point in the cycle and if you position yourself to accumulate them, you are going to do very well," Klein said. Still, warns Northern Star's Beament, as more more buyers show their hands, M&A costs can only go up. "We are in the business of generating superior shareholder returns. Paying some of the premiums being asked for gold assets in today's market is not consistent with that objective," he said. ($1 = 1.2789 Australian dollars) (Editing by Richard Pullin) ((jim.regan@thomsonreuters.com; +612 9373-1814; Reuters Messaging: jim.regan.reuters.com@reuters.net)) Keywords: GOLD AUSTRALIA/M&A

BRIEF-Jaguar Mining Inc Q1 shr loss $0.12

May 26, 2015 - reuters.com

May 25 (Reuters) - Jaguar Mining Inc JAG.V : * Reports Q1 2015 operating and financial results * Q1 revenue $28.7 million versus $31.1 million * Qtrly loss per share $0.12 * Source text for Eikon ID:nPn9zGjcp * Further company coverage JAG.V ((Bengaluru Newsroom; +1 646 223 8780))

GLOBAL MARKETS-Europe stocks stumble, dollar lifted by U.S rate view

May 25, 2015 - reuters.com

* Markets in U.S., much of Europe closed on Monday * Dollar hits one-month high vs other major currencies * CPI data, Yellen speech revive U.S. rate rise expectations * Spanish ruling party takes battering in regional vote * Spanish, Italian, French shares fall By Emelia Sithole-Matarise LONDON, May 25 (Reuters) - European shares fell in thin trade on Monday while the dollar powered ahead after U.S. Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year. Investor concerns about Greece's debt problems and a poor regional and local election result by Spain's ruling People's Party also weighed on the euro and European shares. ID:nL5N0YF0IR ID:nL5N0YF0CO The pull-back in European stocks mirrored losses on Wall Street on Friday after Yellen suggested the Fed was ready to act if the economy kept improving as expected, though a raft of recent data has suggested it is growing only modestly in the second quarter. She said delaying a policy tightening until employment and inflation hit its targets risked overheating the economy. ID:nL1N0YD1IH The benchmark French CAC 40 .FCHI index shed 0.8 percent. Trading volumes were thin as several markets including Germany, the United Kingdom and the United States were shut for holidays. Spain's IBEX equity index IBEX fell 2.3 percent after voters in regional and local elections on Sunday punished Prime Minister Mariano Rajoy's ruling PP for four years of austerity while Greece's ATG share index .ATG fell 2 percent. "The Greek debt warning and the Spanish election outcome are weighing on the markets, said Naeem Aslam, chief market analyst at AvaTrade. After four months of talks with its euro zone partners and the IMF, Greece's leftist-led Syriza government is still scrambling for a deal that could release up to 7.2 billion euros ($7.9 billion) in remaining aid to avert bankruptcy. RESURGENT DOLLAR In foreign exchange markets, the dollar index .DXY , which measures the greenback against a basket of other major currencies, rose 0.3 percent to a one-month high of 96.475. Against the yen, the dollar traded near a two-month high of 121.78 JPY= , jumping from a low of 120.64 after Yellen's comments and as stronger-than-expected underlying U.S. inflation supported the Fed's case for an interest rate hike later this year. Data on Friday showed the U.S. Labor Department's gauge on core consumer goods prices rose by 0.3 percent last month, bringing the year-on-year rise to 1.8 percent, the highest since October. ID:nLLAMGEBJZ "I would expect rate expectations to continue to rise and for the dollar's uptrend to continue as a result," said Marshall Gittler, head of global FX strategy at IronFX Global. The euro was weaker, falling to a one-month low of $1.0959 EUR= with some traders citing the victory of anti-austerity parties in Spain and Greece's financial crisis as factors. In the most explicit remarks so far about the likelihood of default if negotiations fail, Greece's interior minister said Athens cannot make debt repayments to the IMF next month unless it manages to reach a deal with its lenders. ID:nL5N0YF0IR Oil prices dipped towards $65 a barrel as a rallying dollar and profit-taking took their toll. Brent LCOc1 was down about 0.4 percent at $65.01 after dropping 2.1 percent for the week. O/R ($1 = 0.9110 euros) (Additional reporting by Anirban Nag and Sudip Kar-Gupta; Editing by Toby Chopra) ((emelia.sithole@thomsonreuters.com; +44 20 7542 6752; Reuters Messaging: emelia.sithole.thomsonreuters.com@reuters.net))

Keywords: MARKETS GLOBAL/

PRECIOUS-Gold dips as Yellen comments shore up dollar

May 25, 2015 - reuters.com

* Yellen signals Fed on track to hike US rates this year * Dollar at highest in a month after Yellen's comments * US, UK markets shut on Monday (Updates prices) By Clara Denina LONDON, May 25 (Reuters) - Gold prices fell slightly on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015. Fed Chair Janet Yellen indicated on Friday that the U.S. central bank was poised to raise rates this year, with the world's largest economy set to bounce back from an early-2015 slump. ID:nL1N0YD1IH Higher U.S. interest rates increases the opportunity cost of holding non-yielding bullion. Spot gold XAU= was down 0.2 percent at $1,203.46 an ounce by 1127 GMT, just above a near-two-week low of $1,201.20 hit in the previous session. It posted its biggest weekly drop in a month last week, down 1.4 percent. Liquidity was thin with British and U.S. markets shut for holidays. "The Fed raising the rates is certainly not electrifying news for the precious metal, which is on track to extend its biggest weekly decline since April," AvaTrade chief market analyst Naeem Aslam said. "Yellen last week has confirmed that she is still confident that the rates will rise this year and (gold) traders are not fond of this news at all." The prospect of higher rates later in 2015 boosted the dollar to its highest in a month against a basket of major currencies on Monday. Stronger-than-expected underlying U.S. inflation and persisting Greek debt worries also supported the greenback. ID:nL1N0YD0N2 A stronger dollar makes gold more expensive for holders of other currencies, while diminishing the metal's appeal as an hedge against risk. In the physical markets, gold demand across Asia was soft as investors channel their money towards higher-yielding stock markets. GOL/AS Indian gold jewellery demand in the second half of the year could take a hit as the Hindu calendar shows the number of dates seen as being auspicious for weddings will drop 40 percent in the second half from a year earlier. ID:nL3N0YD26X In other Asia-related news, China has established a fund that is expected to raise about $16 billion for gold-backed investment as part of its "Silk Road" initiative to develop trade and transport infrastructure across Asia and beyond, official media reported. ID:nL3N0YG1RI Silver XAG= was down 0.7 percent at $16.99 an ounce, after falling 2.2 percent last week. Platinum XPT= dropped 0.1 percent to $1,143.88 an ounce and palladium XPD= fell 0.7 percent to $774.98 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore and Veronica Brown in London; Editing by Mark Potter and William Hardy) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/ * Yellen signals Fed on track to hike US rates this year * Dollar at highest in a month after Yellen's comments * US, British markets shut on Monday (Updates prices) By Clara Denina LONDON, May 25 (Reuters) - Gold prices were marginally lower on Monday, as the dollar gained traction against major currency rivals, on signs the Federal Reserve is preparing to tighten monetary policy for the first time in six years in 2015. Fed Chair Janet Yellen indicated on Friday that the U.S. central bank was poised to raise rates this year, with the world's largest economy set to bounce back from an early-2015 slump. ID:nL1N0YD1IH Higher U.S. interest rates increases the opportunity cost of holding non-yielding bullion. Spot gold XAU= was down 0.1 percent at $1,205.06 an ounce by 1339 GMT, but held above a near-two-week low of $1,201.20 hit in the previous session. It posted its biggest weekly drop in a month last week, down 1.4 percent. Liquidity was thin with British and U.S. markets shut for holidays. "The Fed raising the rates is certainly not electrifying news for the precious metal, which is on track to extend its biggest weekly decline since April," AvaTrade chief market analyst Naeem Aslam said. "Yellen last week has confirmed that she is still confident that the rates will rise this year and (gold) traders are not fond of this news at all." The prospect of higher rates later in 2015 boosted the dollar to its highest in a month against a basket of major currencies on Monday. Stronger-than-expected underlying U.S. inflation and persisting Greek debt worries also supported the greenback. ID:nL1N0YD0N2 A stronger dollar makes gold more expensive for holders of other currencies, while diminishing the metal's appeal as an hedge against risk. In the physical markets, gold demand across Asia was soft as investors channel their money towards higher-yielding stock markets. GOL/AS Indian gold jewellery demand in the second half of the year could take a hit as the Hindu calendar shows the number of dates seen as being auspicious for weddings will drop 40 percent in the second half from a year earlier. ID:nL3N0YD26X In other Asia-related news, China has established a fund that is expected to raise about $16 billion for gold-backed investment as part of its "Silk Road" initiative to develop trade and transport infrastructure across Asia and beyond, official media reported. ID:nL3N0YG1RI Silver XAG= was down 0.3 percent at $17.07 an ounce, after falling 2.2 percent last week. Platinum XPT= dropped 0.1 percent to $1,143.99 an ounce and palladium XPD= rose 0.2 percent to $782.72 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore and Veronica Brown in London; Editing by Alison Williams) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

INDICATORS - Kazakhstan - May 25

May 25, 2015 - reuters.com

PRECIOUS-Gold dips on robust dollar, Yellen comments on rate hike

May 25, 2015 - reuters.com

* Yellen signals Fed on track to hike US rates this year * Dollar at highest in a month after Yellen's comments * US, UK markets shut on Monday (Updates throughout, changes dateline from SINGAPORE) By Clara Denina LONDON, May 25 (Reuters) - Gold edged lower on Monday as the dollar strengthened to a one-month high on signs the Federal Reserve is readying to raise interest rates for the first time in six years in 2015. In a speech to a business group on Friday, Fed Chair Janet Yellen indicated the U.S. central bank was poised to raise rates this year as the world's largest economy was set to bounce back from an early-year slump and headwinds at home and abroad waned. ID:nL1N0YD1IH Higher U.S. interest rates would increase the opportunity cost of holding non-yielding bullion. Spot gold XAU= was down 0.1 percent at $1,204.46 an ounce by 0847 GMT, just above a near-two-week low of $1,201.20 hit in the previous session. It posted its biggest weekly drop in a month last week, down 1.4 percent. Liquidity was likely to remain thin on Monday as British and U.S. markets are shut for holidays. "The Fed raising the rates is certainly not a electrifying news for the precious metal, which is on track to extend its biggest weekly decline since April," AvaTrade chief market analyst Naeem Aslam said. "Yellen last week has confirmed that she is still confident that the rates will rise this year and (gold) traders are not fond of this news at all." The prospect of higher rates later in 2015 boosted the dollar to its highest in a month against a basket of major currencies on Monday. Stronger-than-expected underlying U.S. inflation and persisting Greek debt worries also supported the greenback. ID:nL1N0YD0N2 A stronger dollar makes gold more expensive for holders of other currencies, while diminishing the metal's appeal as an hedge against risk. "The dollar is also regaining momentum, so we could see gold drop below $1,200 soon," a Singapore-based trader said. In the physical markets, gold demand across Asia was soft as investors channel their money towards higher-yielding stock markets. GOL/AS Indian gold jewellery demand in the second half of the year could take a hit as the Hindu calendar shows the number of dates seen as being auspicious for weddings will drop 40 percent in the second half from a year earlier. ID:nL3N0YD26X In other Asia-related news, China has established a fund that is expected to raise about $16 billion for gold-backed investment as part of its "Silk Road" initiative to develop trade and transport infrastructure across Asia and beyond, official media reported. ID:nL3N0YG1RI Silver XAG= was down 0.9 percent at $16.96 an ounce, after falling 2.2 percent last week. Platinum XPT= dropped 0.3 percent to $1,140.45 an ounce and palladium XPD= fell 0.6 percent to $776.45 an ounce. (Additional reporting by A. Ananthalakshmi in Singapore; Editing by Mark Potter) ((clara.denina@thomsonreuters.com)(+44 207 542 9420)(Reuters Messaging: clara.denina.thomsonreuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

China sets up gold fund as part of Silk Road initiative - media

May 25, 2015 - reuters.com

SHANGHAI, May 25 (Reuters) - China has established a fund that is expected to raise about $16 billion for gold-related investment as part of its "Silk Road" initiative to develop trade and transport infrastructure across Asia and beyond, official media reported. The fund, which will be run by a new company to be set up by gold producers and financial institutions, is expected to raise an estimated 100 billion yuan ($16.13 billion) in three phases, Shanghai Securities News reported at the weekend. Two leading gold producers, Shandong Gold Group, the parent of Shandong Gold Mining Co Ltd 600547.SS , and Shaanxi Gold Group will take stakes of 35 percent and 25 percent respectively, with the rest owned by financial institutions, the newspaper said. The fund's activities could take in the launch of gold-backed exchange-traded funds and buying stakes in listed gold companies and mining firms. President Xi Jinping said earlier this year he hoped annual trade with the countries involved in Beijing's plan to create a modern Silk Road would surpass $2.5 trillion in a decade. ID:nL3N0WV095 China is the world's biggest producer of gold and a top consumer of the precious metal. In 2014 it was the second-biggest consumer of gold jewellery, bars and coins and it took the first place from India in the first quarter of this year, according to the World Gold Council. ($1 = 6.1990 Chinese yuan) (Reporting by Ruby Lian in Shanghai and A. Ananthalakshmi in Singapore; Editing by Alan Raybould) ((ruby.lian@thomsonreuters.com; +86 21 6104 1797; Reuters Messaging: ruby.lian.thomsonreuters.com@reuters.net)) Keywords: CHINA GOLD/

BRIEF-Mungana Goldmines says co and Newcrest sign exploration agreement

May 25, 2015 - reuters.com

May 25 (Reuters) - Mungana Goldmines Ltd MUX.AX : * Mungana signs agreement with Newcrest MUX.AX * Agreement with leading gold producer to spend up to $20M on exploration over a period of up to 8 years * Says Newcrest will earn a 70% interest in an unincorporated joint venture with Mungana (30%) if it incurs $20 million * Agreement for Newcrest to explore for gold-copper at the chillagoe project in north Queensland * Newcrest can spend up to an additional $17M over a further 78 months to earn a 70% interest in the exploration area * Source text for Eikon ID:nASX6MgKSN * ((For more news, please click here MUX.AX )) ((Bengaluru Newsroom; +91 80 6749 1130))

MIDEAST STOCKS - Factors to watch - May 25

May 25, 2015 - reuters.com

DUBAI, May 25 (Reuters) - Here are some factors that may affect Middle East stock markets on Monday. Reuters has not verified the press reports and does not vouch for their accuracy. INTERNATIONAL/REGIONAL * GLOBAL MARKETS-Asian shares little changed, Fed views hurt some markets MKTS/GLOB * MIDEAST STOCKS-Gulf markets slip, tracking oil; Egypt extends gains ID:nL5N0YF0BJ * Oil prices edge up on firm Asian, U.S. demand O/R * Gold struggles near $1,200 on Yellen comments, robust dollar ID:nL3N0YG1GI * Iran set to overhaul fuel pricing and set a single rate -official ID:nL5N0YF0MJ * Iran says OPEC unlikely to change output ceiling - Mehr news agency ID:nL5N0YF045 * Libyan government warplanes attack oil tanker docked at Sirte ID:nL5N0YF0GA * Eastern Libyan state oil firm AGOCO pumps up to 290,000 bpd -spokesman ID:nL5N0YF0MF * Syria says Islamic State kills hundreds, including children, in Palmyra ID:nL5N0YF0DY * Iraq regains ground from Islamic State; mass deaths reported in Palmyra ID:nL5N0YF0HA * IAFC to raise $400 mln Islamic loan for aircraft financing - statement ID:nD5N0Y202W * Zain Jordan sees revenues rising 5 pct in 2015 as internet usage ID:nL5N0YF0KL * Funds feel heat of coal and tar divestment drive ID:nL5N0YB4YC EGYPT * Egypt's Qalaa says seeing strong foreign interest in asset sales ID:nL5N0YF074 * Egyptian pound steady at official auction, weaker on black market ID:nL5N0YF08G SAUDI ARABIA * Saudi king says heartbroken by mosque attack, promises punishment ID:nL5N0YF07C * Saudi's Emaar Economic City says expects tenant inflow to accelerate ID:nL5N0YF086 * Saudi forces and Yemen's Houthis trade heavy fire, border crossing hit ID:nL5N0YF098 UNITED ARAB EMIRATES * UAE banks discuss plan for centralised Islamic finance board ID:nL5N0YF053 * UAE April inflation slows to 4.2 pct y/y ID:nL5N0YF032 KUWAIT * Kuwait's Burgan Bank to consider expanding in UAE, Saudi, Egypt ID:nL5N0YF04Z OMAN * Oman's Bank Sohar launches $250 mln 3-yr debut loan - statement ID:nD5N0Y202V (Compiled by Dubai newsroom) ((dubai.newsroom@reuters.com)) Keywords: MIDEAST FACTORS/

India Morning Call-Global Markets

May 25, 2015 - reuters.com

EQUITIES NEW YORK - U.S. stocks ended weaker on Friday after Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates this year, in line with Wall Street's expectations. Lackadaisical trading volume during the session ended a week of slow activity that has left many investors unconvinced that recent record-high levels are likely to last. For a full report, click on .N - - - - LONDON - Britain's top share index rose on Friday and was set to end the week on a positive footing after telecoms company Vodafone VOD.L extended a recent rally driven by merger speculation. For a full report, click on .L - - - - TOKYO - Japan's Nikkei share average rose for a seventh day, hitting a fresh 15-year high on Monday morning, helped by ongoing optimism for higher shareholder returns and the recovering economy. The Nikkei 225 .N225 gained 0.7 percent to 20,409.05, the highest level since April 2000. For a full report, click on .T - - - - HONG KONG - Hang Seng Index .HSI is up 1.7 percent. For a full report, click on .HK - - - - FOREIGN EXCHANGE SYDNEY - The dollar hovered at a two-month high versus the yen and stood firm against other peers after surging on a higher-than-expected U.S. core consumer price index that supported the Federal Reserve's case for a rate hike later this year. The dollar traded near a two-month high of 121.70 yen JPY= after jumping from a low of 120.64 on Friday, helped by a rise in U.S. Treasury yields triggered by the CPI data. A rise above 122.04 would take the greenback to an eight-year high against the yen. For a full report, click on USD/ - - - - TREASURIES NEW YORK - U.S. Treasuries yields rose on Friday as a stronger-than-expected increase in core consumer prices in April revived expectations that inflation may approach the Federal Reserve's 2 percent target later this year. If the price upturn persists, it would allow the U.S. central bank to consider ending its near-zero interest rate policy this year sooner than previously thought, analysts said. For a full report, click on US/ - - - - COMMODITIES GOLD SINGAPORE - Gold was trading close to its lowest in over a week on Monday after Federal Reserve Chair Janet Yellen said the U.S. central bank was poised to hike interest rates this year and as the dollar strengthened to its highest in a month. Spot gold XAU= had slipped 0.2 percent to $1,203 an ounce by 0032 GMT, close to $1,201.20, the metal's lowest since May 13 reached in the previous session. For a full report, click on GOL/ - - - - BASE METALS SINGAPORE - Shanghai copper slipped to its lowest level in more than three weeks on Monday, tracking last week's losses in London after the Federal Reserve sent a strong signal it would raise interest rates this year, boosting the dollar. The most traded July copper contract on the Shanghai Futures Exchange SCFcv1 slipped 1 percent to 44,720 yuan ($7,212) a tonne. It found support at the 200-day moving average of 44,540 yuan but a break of that could spur further technical sales. For a full report, click on MET/L - - - - OIL SINGAPORE - Crude oil futures edged up on Monday, buoyed by healthy Asian appetite and demand from the U.S. driving season. Front-month Brent crude prices LCOc1 were up 6 cents at $65.43 per barrel at 0045 GMT. U.S. crude prices CLc1 were also up 6 cents at $59.78 a barrel. For a full report, click on O/R (Compiled by Rafael Nam) ((swati.bhat@thomsonreuters.com; twitter.com/swatibhat22; +91-22-61807353; Reuters Messaging: swati.bhat.thomsonreuters.com@reuters.net)) Keywords: MORNINGCALL INDIA/

Barrick agrees to sell Cowal mine for $550 mln

May 25, 2015 - reuters.com

NEW YORK, May 24 (Reuters) - Barrick Gold Corp ABX.TO said on Sunday that it had reached an agreement to sell 100 percent of the Cowal mine in New South Wales, Australia to Evolution Mining for $550 million. The deal is expected to be completed in the third quarter of 2015, Barrick said. Proceeds from the sale will be used to pay down debt and will contribute to reduced general and administrative costs, the company added. (Reporting by Sam Forgione; Editing by Sandra Maler) ((Sam.Forgione@thomsonreuters.com; 646-223-6189; Reuters Messaging: sam.forgione.thomsonreuters.com@reuters.net)) Keywords: COMMODITIES BARRICK/

Login required

Please note that, in order to view the full text, you must be logged-in at our system.

Please login at the easy-forex homepage (new users need registration).

Thank you.