Please wait...

Reuters News

GLOBAL MARKETS-Stocks rise as China fears ease; oil rebounds

September 03, 2015 - reuters.com

* S&P 500 ends up 1.8 pct * Dollar rises, helped by data on private payrolls * Oil erases early losses to settle higher (Updates with U.S. market closing levels) By Caroline Valetkevitch NEW YORK, Sept 2 (Reuters) - Global stock indexes rose on Wednesday, helped by reports of brokerage measures in China to invigorate the country's battered markets, while oil bounced from earlier losses to end nearly 2 percent higher. The S&P 500 jumped 1.8 percent, rebounding from Tuesday's steep losses. An upward revision in U.S. productivity data and a Federal Reserve report saying U.S. labor markets were tight enough to fuel small wage gains in some professions in recent weeks boosted sentiment. Rallying equities pulled crude oil up from lows in another volatile session for the energy market. Overseas, nine Chinese brokerages pledged to buy more than 30 billion yuan of shares, according to the China Securities Journal. That eased investor fears that Beijing may be intensifying a trading crackdown. ID:nL4N11803T The news steadied global markets that have been rattled in recent weeks by concerns about slowing growth in China, the world's second biggest economy. "What we're seeing today is not a recovery. It's market volatility, it's nervousness, it's an inability to call the direction of the market," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "Through now and October we're going to see a lot more of this, a lot of volatility." The CBOE Volatility index .VIX , Wall Street's "fear gauge," dipped 11 percent but stayed in territory not seen since 2011 after Standard & Poor's cut its credit rating on the United States for the first time. The Dow Jones industrial average .DJI rose 293.03 points, or 1.82 percent, to 16,351.38, the S&P 500 .SPX gained 35.01 points, or 1.83 percent, to 1,948.86 and the Nasdaq Composite .IXIC added 113.87 points, or 2.46 percent, to 4,749.98. The S&P 500 posted its worst monthly drop in three years in August and is down 8.5 percent from its all-time high in May. European equities .FTEU3 ended 0.2 percent higher, while MSCI's all-country stock index .MIWD00000PUS rose 0.8 percent. Brent October crude LCOc1 rose 1.9 percent to settle at $50.50 a barrel, having recovered from a $47.74 low. U.S. October crude CLc1 rose 1.9 percent to settle at $46.25, after falling as low as $43.21 in the session. On Tuesday, oil slid 8 percent, ending a 25 percent three-session surge of frenzied short-covering. The dollar rose as global stock markets steadied, and as U.S. hiring data encouraged speculation that the Fed will raise interest rates at its policy-setting meeting later this month. The dollar index .DXY , a measure of six major currencies' value against the greenback, was last up 0.40 percent and had added to gains when ADP reported that U.S. private payrolls increased 190,000 last month. The government's more comprehensive non-farm payrolls report is due on Friday, the last monthly report before the Fed meets on Sept. 16-17. In another report on Wednesday, U.S. data showed nonfarm productivity increased at its strongest pace in 1-1/2 years in the second quarter, keeping wage inflation subdued for now. The combination of more demand for workers and worries about Chinese economic growth underscores the challenge faced by the Fed at its upcoming meeting, when it may decide to raise interest rates for the first time since 2006. Prices of safe-haven U.S. Treasuries slipped on the greater risk appetite, with long-dated prices falling the most on continued speculation of foreign central bank selling. Benchmark 10-year Treasuries US10YT=RR were last down 5/32 in price to yield 2.19 percent from 2.17 percent late Tuesday. U.S. 30-year Treasuries US30YT=RR were last off 18/32 to yield 2.96 percent from 2.93 percent late Tuesday. In the precious metals market, gold eased as the rebound in stocks and the dollar arrested a four-day rise. Spot gold XAU= was down 0.5 percent at $1,134 an ounce. (Additional reporting by Noel Randewich in San Francisco and Robert Gibbons in New York; Editing by Meredith Mazzilli and Leslie Adler) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging: caroline.valetkevitch.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

Coinbase launches retail bitcoin service in Singapore, Canada

September 03, 2015 - reuters.com

NEW YORK, Sept 2 (Reuters) - Coinbase, one of the world's largest U.S.-based bitcoin companies, has launched retail buy and sell operations in Singapore and Canada as part of its push to expand usage of the digital currency globally. Singapore is San-Francisco-based Coinbase's first foray into Asia, said Brian Armstrong, the company's chief executive officer and co-founder. The money transfer service in Singapore, to be launched on Thursday, will allow consumers to buy and sell bitcoin with Singapore dollars. Armstrong said the service is not considered regulated activity in Singapore. Unlike conventional currencies, bitcoin is bought and sold on a peer-to-peer network independent of central control. Bitcoin is not backed by a government or central bank, and its value fluctuates according to demand by users. On Wednesday, bitcoin was trading at $229.35 BTC=BTSP , up 0.6 percent on the day. Coinbase also launched a retail buy and sell service for consumers as well as an exchange for professional traders in Canada earlier this week. "About a year ago, we made a decision to offer bitcoin services to as many countries in the world," Armstrong told Reuters. At present, Coinbase operates in 28 countries. Armstrong said the goal is to be in 40 countries by the end of 2015. "That would be an aggressive goal. So we may end up 2015 with 30-40 countries." Coinbase currently has more than 3.9 million consumer wallets, 40,000 merchants using its payment mechanism and 7,000 software developers using its platform to create new products. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Leslie Adler) ((gertrude.chavez@thomsonreuters.com; 646-223-6322; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net)) Keywords: USA BITCOIN/COINBASE

India drugmaker stocks exception in Asian rout

September 03, 2015 - reuters.com

GRAPHIC: Share prices: http://link.reuters.com/huk55w By Nichola Saminather and Zeba Siddiqui SINGAPORE/MUMBAI, Sept 3 (Reuters) - The double-digit stock market gains of Indian pharmaceutical giants including Dr. Reddy's Laboratories REDY.NS and Wockhardt WCKH.NS stand out in stark relief to the dismal performance of other Asian emerging-market stocks this year. Their shares have surged on expectations of higher earnings driven by their expansion in the United States and India, faster drug approvals, and improved portfolio quality through acquisitions. Continued strength in the dollar when the Federal Reserve raises interest rates will also boost their income. More than 40 percent of over-the-counter and generic prescription drugs sold in the United States come from India. ID:nL4N1123FG In Mumbai trading so far this year, Lupin Ltd LUPN.NS has climbed 32 percent, Dr. Reddy's 31 percent, Glenmark Pharmaceuticals GLEN.NS 42 percent and Wockhardt 29 percent. That compares with a 6.9 percent decline in the Sensex .BSESN in late trade on Wednesday and a 16 percent drop in the MSCI Asia Pacific ex-Japan index .MIAPJ0000PUS . The share price gains in the drugmakers were supported by a weaker rupee INR= , which has fallen 5.1 percent against the greenback this year. "Large-cap Indian pharma companies are predominantly dollar exposed," said Hemant Bakhru, pharmaceuticals analyst at UBS in Mumbai. "Emerging-market investors who right now want to avoid risk and invest in assets that are more exposed to the U.S. economy as against emerging markets will naturally choose some of these Indian pharma names." Asia ex-Japan investors shifted to a "massive" overweight position in pharmaceutical companies in August from "underweight" in the previous month, making the sector their second-biggest exposure, according to Bank of America Merrill Lynch. They also expanded their overweight positions in India, already their biggest exposure, the bank's data show. (Editing by Ryan Woo) ((Nichola.Saminather@thomsonreuters.com; +65 6870 3317;)) Keywords: ASIA STOCKS/INDIA PHARMACEUTICALS

As stocks tumble, Indian pharma, Taiwan tech lure smart money

September 03, 2015 - reuters.com

By Nichola Saminather SINGAPORE, Sept 3 (Reuters) - Asia's tumbling stocks have triggered an exodus of funds from the region, but some investors say the sell-off has been indiscriminate and that certain stocks offer compelling buying opportunities. The downturn in equities has been exacerbated by steep falls in Asian currencies, which have taken multiple blows from a sputtering Chinese economy, the unexpected 2 percent devaluation of its yuan currency on Aug. 11, and expectations the U.S. Federal Reserve will raise rates by year-end. [ID: nL4N1102Q1] Fears the China growth woes could knock the global economy have spread turmoil in world financial markets, toppling the benchmark MSCI Asia Pacific ex-Japan index .MIAPJ0000PUS 16 percent this year. China's stocks .SSEC , the epicenter of the global equities shakeout, have plunged around 40 percent from their mid-June peak. But the turbulence hides opportunities, some funds say, with Credit Suisse estimating net selling in emerging Asia ex-China reached a whopping $19.8 billion in the three months to Aug. 28. "We don't see weaker Asian currencies as a positive for stock markets," said Andrew Gillan, head of Asia ex-Japan equities at Henderson Global Investors. "But it's a little bit unfair to tarnish the whole of Asia as higher risk." Economic growth in Asia is stronger than elsewhere and profits are "chugging along nicely," he said. Among the winners are Indian technology firms and drugmakers, which source cheaply locally and earn dollars selling largely in the United States. These include Tata Consultancy TCS.NS and Tech Mahindra TEML.NS , according to Henderson and BNP Paribas Investment Partners. The former had a three-month gain of 1.9 percent and the latter a 2.7 percent drop by late trade on Wednesday. Indian drug companies Glenmark Pharmaceuticals GLEN.NS and Dr. Reddy's Laboratories REDY.NS , Taiwanese blinds manufacturer Nien Made Enterprise 8464.TWO and Korean garment maker Hansae Co. 105630.KS , also fit the bill, according to BNPP IP. Henderson's Indian pharmaceuticals pick is Lupin Ltd. LUPN.NS , which has gained 5.1 percent. Lupin gets 43 percent of revenues from the United States, according to BNPP IP. In the last three months Glenmark has jumped 26 percent, Dr. Reddy's Labs 22 percent, Nien Made 17 percent and Hansae a whopping 63 percent. The safe haven Japanese yen's 3.5 percent gain this year against the dollar helps Korean carmakers such as Hyundai 011760.KS and Kia Motors 000270.KS , said Josh Crabb, Hong Kong-based head of Asian equities at Old Mutual Global Investors. "If the world improves they'll sell more cars, and if it gets worse, the won goes down further, so it puts them at an advantage relative to Japan," he said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ India drugmaker stocks exception in Asian rout? ID:nL4N1171OY ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> TARGETED BUYING Consumer goods makers, particularly those that source and sell locally, are shielded from currency fluctuations and can price competitively against imports, Henderson's Gillan said. Henderson holds Uni-President Enterprises 1216.TW in Taiwan, which has upgraded earnings this year and risen 18 percent . Taiwanese high-end technology firms, whose products' complexity means they face little regional competition, are also deemed good plays. BNPP IP is positive on Taiwan's Aerospace Industrial Development Corp. 2634.TW , which has lost 1.2 percent this year. While currency depreciation in a low growth world is unsustainable, "we see this as a good opportunity to buy individual stocks which we have been looking at enviously because of their rich valuations," said Daisuke Nomoto, senior portfolio manager at investment house Columbia Threadneedle in Boston. "Companies who can finance internally, who have strong balance sheets and/or who have minimal U.S.-dollar debt exposures should be better off." (Reporting By Nichola Saminather; Editing by Nachum Kaplan & Shri Navaratnam) ((Nichola.Saminather@thomsonreuters.com; +65 6870 3317;)) Keywords: MARKETS ASIA/OPPORTUNITY

U.S. Treasury's Lew says China will be held accountable on currency

September 02, 2015 - reuters.com

WASHINGTON, Sept 2 (Reuters) - The Obama administration on Wednesday urged China to be clear about its intentions when it changes currency policies. "They need to understand that they signal their intentions by the actions they take and the way they announce them," U.S. Treasury Secretary Jack Lew told network CNBC in an interview ahead of a Group of 20 meeting that Chinese officials will attend. "They have to be very clear that they are continuing to move in a positive direction and we're going to hold them accountable," Lew said. (Reporting by Jason Lange; Editing by Diane Craft) ((jason.lange@thomsonreuters.com; +1 202 310 5487; Twitter @langejason; Reuters Messaging: jason.lange.thomsonreuters.com@reuters.net)) Keywords: CURRENCY CHINA/USA

Foreign equity outflows in Brazil jump to 2-year high in August

September 02, 2015 - reuters.com

SAO PAULO, Sept 2 (Reuters) - Foreign investors pulled the most money out of Brazil's cash equity markets in more than two years in August, as signs of a steeper-than-expected slowdown in China and mounting political and market turmoil in Latin America's largest economy undermined the appetite for stocks. Net outflows from the São Paulo Stock Exchange reached 3.314 billion reais ($880 million) in August, the highest level since 4.07 billion reais in July 2013, data from exchange operator BM&FBovespa SA showed on Wednesday. Outflows increased significantly from July, when they reached 567.9 million reais. In the first eight months, the exchange received net inflows of 17.657 billion reais from non-resident investors. The numbers underscore growing risk aversion around the world as a slowing Chinese economy and declining commodity prices are reducing the allure of investments across emerging market countries. The inability of the Brazilian government to fix eroding public finances is further unnerving some investors. "To the extent that signals from China continue to feed uncertainty and the adverse local economic and political news persist, including the materialization of Brazil's sovereign rating below investment grade, so should outflows," said Axel Christensen, chief Latin America and Iberia strategist at BlackRock Inc. The Bovespa stock index has shed 34 percent in U.S. dollar terms this year. Still, if China's situation stabilizes and on the local front political and market noise diminish, "investor perception could change and thus the direction of flows," Christensen noted. The worsening of a recession that is expected to be Brazil's steepest in at least 25 years, as well as increased political bickering that could limit efforts to implement fiscal austerity measures, casts a cloud over flow trends in coming months, analysts said. "The macro story in Brazil continues to be an overhang to equities," Bank of America Merrill Lynch strategists led by Felipe Hirai said in a client note, adding that short-term risks include potential downward revisions to earnings estimates and weak fiscal results that could translate into higher interest rates. ($1 = 3.7626 Brazilian reais) (Reporting by Paula Arend Laier; Editing by Guillermo Parra-Bernal) ((guillermo.parra@thomsonreuters.com; +55-11-5644-7714; +55-119-8346-7153; Reuters Messaging: guillermo.parra.thomsonreuters.com@reuters.net)) Keywords: BRAZIL STOCKS/FLOWS

FOREX-Dollar pivots to gains as equities steady

September 02, 2015 - reuters.com

* Dollar reclaims ground lost to euro, yen * Wall Street rallies, halting recent slide * U.S. private payrolls data feed rate hike speculation (Adds late prices, details on sterling decline) By Michael Connor NEW YORK, Sept 2 (Reuters) - The dollar rose on Wednesday as global stock markets steadied and U.S. hiring data encouraged speculation that Federal Reserve policymakers will raise interest rates later this month. Stock market gains slowed a rush to unwind carry trades that had boosted the safe-haven yen and the low-yielding euro in the past few weeks. Both fell against the dollar on Wednesday. MKTS/GLOB China's slowing economy and worries about global growth had prompted investors to cut unfavorable bets in the yen and the euro, both of which have been popular for funding trades involving the sale of low-yielding currencies to buy higher-yielding, but riskier, assets. The dollar index .DXY , a measure of six major currencies' value against the greenback, was last up 0.40 percent and had added to gains when ADP reported that U.S. private payrolls increased 190,000 last month. While that was below economists' expectations for a gain of 201,000 jobs, it was a step up from the 177,000 positions created in July and was followed by revised government data showing nonfarm productivity advanced at its fastest pace in 1-1/2 years during the second quarter. ID:nL1N1180PF "The data lean in the direction of a rate hike," said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. The chances of a U.S. interest rate hike this month, which would add to the allure of dollar-denominated assets for investors, had been dulled by a global stock market selloff following weak economic data from China. The dollar was last up 0.70 percent against the yen JPY= at 120.15 yen, firming from a low of 119.225 yen as calm returned to equity markets. Japan's currency jumped about 1.6 percent on Tuesday when global stocks fell sharply. Looking ahead to Thursday's European Central Bank meeting, the euro EUR= fell 0.7 percent to $1.1240, having rallied 0.9 percent on Tuesday when it rose to $1.1332. The dollar gained more than 1 percent against the Swiss franc CHF= to 0.9691 franc. The British pound hit its lowest level against the dollar in almost three months as investors bet that the Bank of England will not raise interest rates until well into 2016. The pound traded as low as $1.5266 against the dollar GBP= , its lowest since June 9, and was last unchanged at $1.53. (Reporting by Michael Connor in New York, editing by G Crosse) ((michael.connor@thomsonreuters.com; +1-646-223-6309; Reuters Messaging: michael.connor.reuters.com@reuters.net)) Keywords: MARKETS FOREX/

Russia's Polyus Gold shareholder considers making buyout offer

September 02, 2015 - reuters.com

MOSCOW, Sept 2 (Reuters) - Said Kerimov, son of Russian tycoon and parliamentarian Suleiman Kerimov, may announce a buyout offer for the remaining shares in Russia's biggest gold producer Polyus Gold PGIL.L at $2.97 per share, a statement said on Wednesday. Said Kerimov now controls 40.2 percent of Polyus Gold and has until the end of the month to make a binding offer via his companies Wandle Holdings Ltd and Sacturino Ltd. "An offer, if made, would be at a price of US$2.97 per share in cash, representing a premium of approximately 3 percent to the 1 month volume weighted average price of US$2.89 per share and a premium of approximately 7 percent to the 3 months volume weighted average price of US$2.77 per share," Sacturino said. Polyus said it noted the possible offer. ID:nASM000C16 ID:nASM000C14 Polyus' H1 profit beat expectations on higher sales and revaluation gains on derivative financial instruments. Its market value was 5.75 billion pounds ($8.80 billion) as of Wednesday. ID:nL5N10V1E7 Kerimov may try to minimise Polyus Gold free float and then transfer its listing to Moscow, Nikolay Sosnovsky at UBS said. Polyus declined to comment, Sacturino was not available for immediate comment. ($1 = 0.6532 pounds) (Reporting by Polina Devit and Diana Asonova, Writing by Gabriela Baczynska, editing by David Evans) ((gabriela.baczynska@thomsonreuters.com; +7 495 775 12 00; Reuters Messaging: gabriela.baczynska.thomsonreuters.com@reuters.net)) Keywords: RUSSIA POLYUS GOLD INTL/

PRECIOUS-Gold eases after 4-day gain, awaiting signal on U.S. rates

September 02, 2015 - reuters.com

* Traders take to sidelines ahead of Friday jobs data * Palladium seen falling further in 2015 - ABN Amro * GRAPHIC-Asset returns: http://link.reuters.com/dub25t (Updates prices; adds comment, second byline, changes dateline, previous LONDON) By Marcy Nicholson and Jan Harvey NEW YORK/LONDON, Sept 2 (Reuters) - Gold eased on Wednesday as a rebound in stocks and the dollar arrested a four-day rise, with uncertainty over the timing of a looming U.S. rate hike limiting price moves ahead of key U.S. non-farm payrolls data on Friday. The metal retreated from early highs as global stock indexes recovered some of their recent losses, drawing support from reports of brokerage measures in China to invigorate the country's battered markets. MKTS/GLOB Gold also came under pressure from the 0.5 percent rise of the dollar index .DXY . FRX/ Spot gold XAU= was down 0.5 percent at $1,134 an ounce at 2:48 p.m. EDT (1848 GMT), while U.S. gold futures GCv1 for December delivery settled down 0.5 percent at $1,133.60. "We have to wait until we actually see the payrolls numbers this Friday," Capital Economics analyst Simona Gambarini said. "We don't really expect much movement in the gold price (ahead of that). Investors are just waiting on the sidelines to see what the Fed will decide." Traders remain wary of taking up fresh positions until they receive more clarity on when the Fed will press ahead with its first rate hike in nearly a decade. Low interest rates cut the opportunity cost of holding non-yielding bullion while also pressuring the dollar. The Fed has pegged the likelihood of a rate rise to the strength of U.S. data. The August U.S. non-farm payrolls report on Friday is being closely watched, Mitsubishi analyst Jonathan Butler said. "Attention will inevitably turn to the fact that December is now looking the most likely for lift-off on rates, and maybe the market will start to price that in," he said. Data on Wednesday suggested that labor market momentum likely remains strong enough for the Fed to consider an interest rate hike this year. ID:nL1N1180PF Of the precious metals, palladium XPD= has been the most volatile and rose 3.4 percent to a session high at $586.50 an ounce after Tuesday's 5.3 percent tumble. ABN Amro analyst Georgette Boele said in a note that palladium prices should drop further this year, forecasting $525 at the end of 2015, though downward pressure was seen easing. "Autocatalyst demand from emerging markets, especially China and Brazil, will remain weak. We expect the trend in weaker car sales in China to continue into the first half of 2016," Boele said. Among other precious metals, silver XAG= was up 0.5 percent at $14.64 an ounce and platinum XPT= was up 1 percent at $1,010.24. (Additional reporting by Manolo Serapio Jr. in Manila; Editing by Mark Potter and Tom Brown) ((Marcy.Nicholson@thomsonreuters.com, +1 646 223 6043; Reuters Messaging Marcy.Nicholson.ThomsonReuters.com@reuters.net)) Keywords: MARKETS PRECIOUS/

GLOBAL MARKETS-Stocks rise as China fears ease; oil recovers

September 02, 2015 - reuters.com

* U.S. stocks up more than 1 pct * Dollar rises * Oil erases earlier losses to trade flat (Updates with new quote, European shares closing up) By Caroline Valetkevitch NEW YORK, Sept 2 (Reuters) - Global stock indexes rose on Wednesday, drawing support from reports of brokerage measures in China to invigorate the country's battered markets, while oil recovered from earlier losses to trade near flat. Major U.S. stock indexes gained about 1 percent, also boosted by upbeat data on U.S. productivity. European equities .FTEU3 ended up 0.2 percent, building on early relief after Chinese stocks managed to bounce from steep losses before closing slightly lower. ID:nZZN2RJE00 Nine Chinese brokerages pledged to buy more than 30 billion yuan of shares, according to the China Securities Journal. That eased investor fears that Beijing may be intensifying a trading crackdown. ID:nL4N11803T The news stabilized global markets and soothed concerns that slowing growth in China will hurt the global economy. "We expect some more volatility going forward, but we see the recent selloff as a correction and not the start of a bear market," Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets, said. "Possible actions by some central banks such as China doing more to stimulate its economy, the European Central Bank extending its bond-buying program and the Fed delaying an interest rate hike are likely to support the market." The Dow Jones industrial average .DJI rose 207.18 points, or 1.29 percent, to 16,265.53, the S&P 500 .SPX gained 21.81 points, or 1.14 percent, to 1,935.66 and the Nasdaq Composite .IXIC added 68.66 points, or 1.48 percent, to 4,704.77. The U.S. market is still down for the year following the recent selloff. MSCI's all-country stock index .MIWD00000PUS rose 0.4 percent but is down 7.0 percent for the year-to-date. U.S. data showed nonfarm productivity increased at its strongest pace in 1-1/2 years in the second quarter, keeping wage inflation subdued for now. Oil prices were last near unchanged, erasing earlier losses in a volatile session. Data from the Energy Information Association showed U.S. crude stockpiles rose unexpectedly last week. Brent and U.S. crude prices dropped sharply on Tuesday, ending a 25 percent three-session surge, the largest such gain since 1990. "A rise of around 25 percent in three consecutive days was not going to be sustained," BNP Paribas oil analyst Harry Tchilinguirian said. "The underlying fundamentals are bearish." Brent crude LCOc1 for October was down 1 cent at $49.55 a barrel. U.S. crude CLc1 for October was flat at $45.41. The dollar rose as global stock markets steadied, and as U.S. hiring data encouraged speculation that Federal Reserve policymakers will raise interest rates later this month. The dollar index .DXY , a measure of six major currencies valued against the greenback, was last up 0.40 percent and had added to gains when payrolls processor ADP reported that U.S. private payrolls increased by 190,000 last month. The more comprehensive non-farm payrolls report is due on Friday, the last monthly report before the Fed meets on Sept. 16-17. U.S. Treasuries prices slipped after the fresh efforts in China to steady financial markets mitigated concerns about the world's second-biggest economy and reduced demand for safe-haven U.S. government debt. Benchmark 10-year Treasuries US10YT=RR were last down 3/32 in price to yield 2.18 percent, from a yield of 2.17 percent late on Tuesday. U.S. 30-year Treasuries US30YT=RR were last down 11/32 to yield 2.95 percent, from a yield of 2.93 percent late on Tuesday. (Additional reporting by Lionel Laurent and Atul Prakash in London; Editing by Meredith Mazzilli) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging: caroline.valetkevitch.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

BRIEF-Polyus Gold notes possible offer from Sacturino Limited

September 02, 2015 - reuters.com

Sept 2 (Reuters) - Polyus Gold International Ltd PGIL.L : * Independent committee of board of Polyus notes possible offer ( "proposal") announced today by wandle holdings limited and its wholly owned subsidiary sacturino limited * Independent committee of board advises polyus shareholders to take no action until such time as it can make a recommendation * There can be no certainty that an offer will be made, nor as to terms on which any offer might be made Source text for Eikon: ID:nRSB9172Xa Further company coverage: PGIL.L (Bengaluru Newsroom; +44 207 542 1810)

UPDATE 1-German financial watchdog sees higher bank capital buffers

September 02, 2015 - reuters.com

* Higher capital buffers likely after SREP concludes * Can't say now if will prompt bank capital raising * Bafin to wind up forex probe in couple of months (Adds Hufeld comments, Deutsche Bank no comment, background) By Jonathan Gould and Andreas Kröner FRANKFURT, Sept 2 (Reuters) - German banks are likely to face higher capital buffers as a result of a supervisory review process due to conclude in the coming weeks, the head of the country's financial watchdog Bafin said. The supervisory review and evaluation process (SREP) being carried out by the ECB and national banking supervisors uses a broader methodology than the asset quality review carried out last year, before the ECB took over responsibility for supervising the euro zone's 120 largest banks, Bafin President Felix Hufeld told Reuters. "The SREP takes a broader spectrum of risks into account and that must be reflected in the result," Hufeld said in an interview on the margins of a banking conference in Frankfurt. This would likely be reflected in higher capital demands on lenders but it was unclear at the moment if it would prompt actual capital raising by banks, he said. Hufeld also said he expected the watchdog's probe into possible manipulation in the foreign currency market - focused primarily on the dollar and euro - to conclude in the next couple of months. International regulators have been looking at possible forex manipulation by a raft of banks, including Germany's largest lender, Deutsche Bank DBKGn.DE . Deutsche Bank declined comment on Wednesday. It had said earlier this year it expected no big hit from the forex probe. ID:nL8N0XO11I Bafin had uncovered bank behaviour that it previously would have thought unlikely in the case, Hufeld said. "There have been violations (of rules)," he said. "Naturally, this will lead to an evaluation process and discussions with the banks involved," Hufeld said. (Additional reporting by Thomas Atkins; Editing by Victoria Bryan) ((Jonathan.Gould@thomsonreuters.com; +49 69 7565 1242; Reuters Messaging: jonathan.gould.thomsonreuters.com@reuters.net)) Keywords: GERMANY BANKS/REGULATOR

BRIEF-Sacturino Ltd considering possible cash offer for UK's Polyus Gold

September 02, 2015 - reuters.com

Sept 2 (Reuters) - Sacturino Limited: * Possible offer for Polyus Gold * Confirms that it is in preliminary stages of considering a possible all cash offer for share capital of Polyus * A premium of approximately 7 pct to 3 months volume weighted average price of $2.77 per share on basis of an exchange rate of $1.5304 to £1.00 as at September 1, 2015 * An offer, if made, would be at a price of $2.97 per share in cash, representing a premium of approximately 3 pct to 1 month volume weighted average price of $2.89 per share * Will make an application to fas with respect to any offer company may make for Polyus Source text for Eikon: ID:nRSB9161Xa (Bengaluru Newsroom; +44 207 542 1810)

UK's Cameron backs down on government rules for EU referendum-BBC

September 02, 2015 - reuters.com

LONDON, Sept 2 (Reuters) - British Prime Minister David Cameron has backed down over rules limiting the involvement of the government in campaigning before a referendum on European Union membership after lawmakers from his Conservative Party threatened to revolt, the BBC said. In the second concession on the referendum in two days, Cameron will agree to keep in place rules that restrict certain government activity in the weeks ahead of the vote. On Tuesday, the government agreed to change the wording of the referendum question. As many as 27 Eurosceptic lawmakers had argued that removing the rules for the EU referendum would have allowed the machinery of government to be used to support the case for staying in the EU, the BBC said. "Pleased to hear purdah now to be reinstated for EU Referendum as well as fairer question than before but why does Cameron have to be forced?" Mark Reckless, director of policy for the anti-EU United Kingdom Independence Party, said on Twitter. Amendments to the EU Referendum Bill, which is due to have its third reading in the House of Commons on Monday, will impose 'purdah' with some exceptions, though it was unclear whether the changes will satisfy all Eurosceptic lawmakers. British officials have begun renegotiating some aspects of the country's relationship with the EU and Cameron has promised a referendum by the end of 2017, though many officials expect it to be held next year. (Reporting by Guy Faulconbridge; editing by William Schomberg) ((guy.faulconbridge@thomsonreuters.com; +442075424758;)) Keywords: BRITAIN EU/BILL

Soccer-Wales on brink of major tournament after 57 years

September 02, 2015 - reuters.com

By Steve Tongue LONDON, Sept 2 (Reuters) - Wales have suffered so many near-misses in the past half-century that the fans take nothing for granted but there is now a genuine belief they can reach a major tournament for the first time since the 1958 World Cup. It will happen as early as Sunday if Chris Coleman's team win their Euro 2016 qualifiers away to Cyprus on Thursday and then at home to Israel three days later. With their Real Madrid forward Gareth Bale in fine form, Wales lead Group B with 14 points, three ahead of Belgium, who they beat 1-0 at home in June, and five clear of Israel. Victory in the next two games would guarantee one of the two qualifying spots, as even a three-way tie with the Belgians and Bosnia would be good enough on head-to-head results. "We're all buzzing and want to do well for our country, but we are not thinking of qualifying yet," said goalkeeper Wayne Hennessey, who is hoping to win his 50th cap on Thursday, in an interview with Football Association of Wales TV. "Cyprus were good last time and this match will be tough," he added. "The job is not done yet. "But it's in our hands and hopefully we can get it done." Bale has bad memories of Nicosia, where Wales lost 3-1 after taking the lead eight years ago in one of their disappointing qualification campaigns. In 1975 they reached the last eight of the European Championship, at a time when only four teams competed in the finals. For the 1982 and 1986 World Cups, the principality missed out on goal difference and a missed penalty in the final match cost them a place in the 1994 tournament. Then there was a playoff defeat against Russia for Euro 2004. In 2011 Wales slumped to 117th in the FIFA rankings, with only five European teams below them. But since then their fortunes have improved spectacularly, taking them to a current highest-ever position of ninth. Confidence in the camp is now as high as that ranking with the end of a 57-year wait beckoning. (Reporting by Steve Tongue; editing by Ken Ferris) ((Steve.Tongue@thomsonreuters.com;)) Keywords: SOCCER EURO/WALES

S.Africa's rand slips to 10-day low, stocks up as resources gain

September 02, 2015 - reuters.com

* Rand slips to 10-day low * Finance Minister concerned about currency * Stocks up more than 1.6 pct on metal prices * Yields on bonds mixed JOHANNESBURG, Sept 2 (Reuters) - South Africa's rand fell to a 10-day low to the dollar as domestic weakness and global fears continued to weigh on the unit, while stronger mining shares sparked a recovery in stocks. The rand extended losses, slipping 0.4 percent to 13.4915 per dollar ZAR=D3 , after failing to shrug-off aversion for the unit as investors awaited United States jobs data on Friday. "The currency is going to remain under pressure especially as we get closer to the Fed's announcement on interest rates," said Ion de Vleeschauwer, chief currency dealer Bidvest Bank. A positive jobs figure from the U.S. will bolster the case for a rate hike by the U.S. Federal Reserve at next week's policy meeting. The rand had made some gains to the 13.20 resistance level before sliding back. "We've seen a lot of importers buying as well as plenty of locals buying the currency even at these inflated levels, which is showing that the market is slowly but surely getting used to a weaker rand," de Vleeschauwer said. Yields on government bonds were mixed on the day, with the benchmark 2026 issue flat at 8.465 percent. ZAR186= The equity market recovered on Wednesday after starting the week on a downbeat note tracking major overseas markets on growing concerns about a China-led global economic slowdown. The blue-chip JSE Top-40 index .JTOPI ended 1.67 percent higher at 43,699 and the broader All-share index .JALSH lost 1.47 percent to 49,228. "It's all about sentiment at the moment," said Bruno van Eck, a trader at Thebe Stockbroking. "We're seeing quite a lot of money coming out of China being invested in other emerging markets like ourselves." The benchmark Top-40 index rose as industrial metal prices such as copper, bourse and mining heavyweight BHP Billiton BILJ.J rallied 2.24 percent to 219.24 rand as rival Anglo American AGLJ.J climbed 1.59 percent to 141.45 rand a share. Gold miners dominated the decliners' list, with Gold Fields GFIJ.J skidding 7.2 percent to 37.26 rand as the price of bullion eased. (Reporting by Tiisetso Motsoeneng and Mfuneko Toyana; Editing by James Macharia) ((mfuneko.toyana@thomsonreuters.com; +27117753153; Reuters Messaging: mfuneko.toyana.thomsonreuters.com@reuters.net)) Keywords: MARKETS SAFRICA/

UPDATE 1-Volatile rouble sinks after U.S. oil stock build

September 02, 2015 - reuters.com

(Adds details and comment) MOSCOW, Sep 2 (Reuters) - The Russian rouble fell on Wednesday after a volatile day of trading, sinking in the evening along with the oil price after U.S. oil inventory data showed a large buildup in stockpiles. At 1550 GMT, the rouble was 1 percent weaker against the dollar at 67.54 RUBUTSTN=MCX and down 0.5 percent to 75.93 versus the euro EURRUBTN=MCX . The closely watched U.S. inventories data, which showed crude stockpiles rising by an unexpectedly large amount, quashed attempts by the oil price and rouble to recover. ID:nL4N118125 After the data, international oil benchmark Brent LCOc1 fell 2.5 percent on the day to $48.3 per barrel. "Oil is back on the downtrend, that's the main story for the rouble," said Tatiana Orlova, EM strategist at RBS in London. Russian markets shrugged off a six-month extension of EU sanctions against Russia over the Ukraine crisis, as well as an expansion of U.S. sanctions. They viewed the moves as formalities that did not fundamentally change geopolitical risks. Sberbank CIB analysts noted that the rouble's rate against the dollar is approximately three roubles stronger than it was in January, when the oil price was at a similar level, which "gives an idea of the extent to which Ukraine-related risk has abated". Russian share indexes were also dragged down by the U.S. oil stocks data, having been up earlier in the day. The dollar-denominated RTS index .IRTS was down 2 percent to 789 points, while the rouble-based MICEX .MCX was 0.4 percent lower at 1,697 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 Jason Bush and Sujata Rao,; Editing by Larry King) ((jason.bush@thomsonreuters.com; +7 495 775 1242; Reuters Messaging: jason.bush.reuters.com@reuters.net)) Keywords: RUSSIA MARKETS/ROUBLE

German financial watchdog sees higher bank capital buffers

September 02, 2015 - reuters.com

FRANKFURT, Sept 2 (Reuters) - German banks are likely to face higher capital buffers as a result of a supervisory review process due to conclude in the coming weeks, the head of the country's financial watchdog Bafin said. The supervisory review and evaluation process (SREP) being carried out by the ECB and national banking supervisors uses a broader methodology than the asset quality review carried out last year, before the ECB took over responsibility for supervising the euro zone's 120 largest banks, Bafin President Felix Hufeld told Reuters. "The SREP takes a broader spectrum of risks into account and that must be reflected in the result," Hufeld said in an interview on the margins of a banking conference in Frankfurt. (Reporting by Jonathan Gould and Andreas Kroener; Editing by Victoria Bryan) ((Jonathan.Gould@thomsonreuters.com; +49 69 7565 1242; Reuters Messaging: jonathan.gould.thomsonreuters.com@reuters.net)) Keywords: GERMANY BANKS/REGULATOR

UPDATE 1-Polish central bank head: FX mortgage bill poses risk to zloty

September 02, 2015 - reuters.com

(Adds Belka comments, background, context.) * Rates most likely unchanged by year-end, Belka says * Poland to emerge from deflation in November * Interest rates left flat at 1.50 pct, as expected By Pawel Florkiewicz and Marcin Goettig WARSAW, Sept 2 (Reuters) - Poland's currency may weaken significantly if a large number of Poles convert Swiss franc mortgages into zlotys under the terms of a bill now before parliament, the central bank governor said on Wednesday. Speaking after the bank decided to leave interest rates unchanged, Governor Marek Belka warned that declining commodity prices and the risk of a slowdown in emerging markets increased uncertainty over when inflation would return to the bank's target. A bill allowing Poles to convert their Swiss franc mortgages could impose losses of more than $5 billion on banks, forcing some into capital shortages. ID:nL5N1123A1 The bill could undermine the zloty EURPLN=D2 and aggravate the problem of servicing the remaining Swiss franc loans, Belka said. "A sudden conversion would mean a risk of a significant weakening of the zloty, and hence a rise in the costs of foreign exchange-denominated loans," Belka said. "So, we would be shooting ourselves ... in the foot." The mortgages were taken out when Swiss interest rates were low and the franc relatively weak, making them inexpensive to hold. But in January the Swiss central bank lifted its cap on the value of the franc, causing the cost of the mortgages to soar. "Our unequivocal criticism of the solutions proposed in this respect .. concerns primarily the undermining of the banks' financial stability," Belka said. "Financial instability means uncertainty concerning deposits," he also said, referring to deposits of about 850 billion zlotys ($226 billion) held by Polish banks. Last week, officials said that the bill, most likely to be voted on by the Senate on Friday, poses a risk to the economic outlook for Poland's $535 billion economy, the largest in central and eastern Europe. RATES The central bank said the growing threat of economic slowdowns in emerging market and falling commodity prices have increased uncertainty about when inflation will return to the bank's 2.5 percent target. Poland's consumer prices have been falling on an annual basis for more than a year. They dropped by 0.7 percent in annual terms in July. Belka said that Poland would most likely emerge from deflation in November, and the bank's 2015 economic growth target of 3.6 percent was not "seriously threatened". "Interest rates will most likely remain unchanged by year-end," Belka said, but uncertainty arising from October's parliamentary elections made it difficult to make forecasts on monetary policy next year. Belka admitted that the latest economic data were not "great", but said they do not materially change the outlook for growth. "Indeed, the PMI is souring the sentiment" he said. "We must live in a wonderful world, if we are fascinated by the fact that growth is (possibly) at 3.4 percent rather than 3.6 percent. Poland's manufacturing activity index PMI saw its largest monthly drop in more than a decade in August, but economists largely dismissed that as a blip caused by power cuts. ID:nL5N1171A5 ($1 = 3.7664 zlotys) (Reporting by Pawel Florkiewicz and Marcin Goettig; Additional reporting by Jakub Iglewski and Pawel Sobczak; Writing by Marcin Goettig; Editing by Larry King) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND CENBANK/RATES

GLOBAL MARKETS-Stocks recover as China worries ease; oil falls further

September 02, 2015 - reuters.com

* U.S. stocks higher in early trading * Dollar rises * Oil extends losses (Updates with U.S. market openings, changes dateline, previous LONDON) By Caroline Valetkevitch NEW YORK, Sept 2 (Reuters) - Global stock indexes recovered some of their recent losses on Wednesday, drawing support from reports of brokerage measures in China to invigorate the country's battered markets, while U.S. oil extended losses from the day before. The S&P 500 was up 0.7 percent in early trading, also boosted also by upbeat data on U.S. productivity. European equities also were higher, building on early relief after Chinese stocks managed to bounce from steep losses before closing slightly lower. ID:nZZN2RJE00 Nine Chinese brokerages pledged to buy more than 30 billion yuan of shares, according to the China Securities Journal. That eased investor fears that Beijing may be intensifying a trading crackdown. The news stabilized global markets and soothed concerns that slowing growth in China will hurt the global economy. ID:nL4N11803T The Dow Jones industrial average .DJI rose 99.41 points, or 0.62 percent, to 16,157.76, the S&P 500 .SPX gained 8.22 points, or 0.43 percent, to 1,922.07 and the Nasdaq Composite .IXIC added 30.16 points, or 0.65 percent, to 4,666.26. European stocks .FTUE3 were up 0.2 percent. U.S. data showed nonfarm productivity increased at its strongest pace in 1-1/2 years in the second quarter, keeping wage inflation subdued for now. Oil prices retreated. Data from the American Petroleum Institute on Tuesday showed U.S. crude stocks surged last week. The move followed a big drop in Brent and U.S. crude prices on Tuesday, which ended a 25 percent three-session surge, the largest such gain since 1990. "A rise of around 25 percent in three consecutive days was not going to be sustained," BNP Paribas oil analyst Harry Tchilinguirian said. "The underlying fundamentals are bearish." Brent crude LCOc1 for October was down 78 cents at $48.80 a barrel. U.S. crude CLc1 for October was down $1.34 at $44.07. The dollar rose as global stock markets steadied, and as U.S. hiring data encouraged speculation that Federal Reserve policymakers will raise interest rates later this month. The dollar index .DXY , a measure of six major currencies valued against the greenback, was last up 0.40 percent and had added to gains when payrolls processor ADP reported that U.S. private payrolls increased by 190,000 last month. U.S. Treasuries prices slipped after the fresh efforts in China to steady financial markets mitigated concerns about the world's second-biggest economy and reduced demand for safe-haven U.S. government debt. Benchmark 10-year Treasuries US10YT=RR were last down 3/32 in price to yield 2.18 percent, from a yield of 2.17 percent late on Tuesday. U.S. 30-year Treasuries US30YT=RR were last down 11/32 to yield 2.95 percent, from a yield of 2.93 percent late on Tuesday. (Additional reporting by Lionel Laurent; Editing by Meredith Mazzilli) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging: caroline.valetkevitch.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

Sterling touches 3-month low vs dollar

September 02, 2015 - reuters.com

By Jamie McGeever LONDON, Sept 2 (Reuters) - Sterling hit its lowest level against the dollar in almost three months on Wednesday as investors continued to bet that the Bank of England won't raise interest rates until well into next year. A report on the UK construction sector showed a slight increase in activity last month but not as much as economists had expected, fueling the belief that growth is slowing and that the Bank of England need not raise rates imminently. The pound traded as low as $1.5270 against the dollar GBP= , down slightly on the day and the lowest since June 9. The euro was down half a percent at 73.50 pence EURGBP= , succumbing to a broad dollar rally after U.S. productivity and private sector employment data. But that was still within a cent of 74.23 pence from late August, the highest since May. The CIPS/Markit construction Purchasing Managers' Index (PMI) was the only notable UK-centric driver for sterling on Wednesday. It rose to 57.3 in August from 57.1 in July, indicating solid growth but below the 57.5 forecast in a Reuters poll and levels of more than 60 regularly reached in 2014. ID:nL9N0YN01F "The action in sterling is somewhat surprising given how hawkish BoE governor Mark Carney was in his Jackson Hole speech," said Marshall Gittler, head of global FX strategy at IronFX. "The market may be losing faith in central bank communication as their economists can't predict future economic trends any better than the private sector, and their 'forward guidance' has proved to be pretty worthless." Carney said on Saturday in Jackson Hole, Wyoming, that a slowdown in China's economy could push down further on inflation but it did not change, for now, the central bank's position on when and how it might raise rates. Sterling has lost more than 3 percent on a trade-weighted basis in the last two weeks alone as investors have pushed back the timing of the first rate hike. The earliest sterling money markets expect the BoE to move is around March/April next year. The next clue will come on Thursday in the shape of the UK service sector PMI for August, which is expected to rise to 57.6 from 57.4 in July. Britain is still one of the fastest-growing economies in the developed world but that may not be sustainable given the weakness globally. In addition, UK inflation is virtually zero, making it more difficult for the BoE to justify higher rates. (Reporting by Jamie McGeever; Editing by Toby Chopra and Raissa Kasolowsky) ((jamie.mcgeever@thomsonreuters.com; +44)(0)(207 542 8510;)) Keywords: MARKETS STERLING/CLOSE

Brazil's Rousseff says fiscal deficit temporary, Levy not weakened

September 02, 2015 - reuters.com

BRASILIA, Sept 2 (Reuters) - Brazil's President Dilma Rousseff said her government will send Congress new proposals to cover a projected primary budget deficit in 2016, and denied her Finance Minister Joaquim Levy was weakened and isolated in her administration. Speaking to reporters on Wednesday, Rousseff said Brazil's fiscal crunch was temporary and dismissed views that the 2016 primary budget shortfall announced on Monday was "disastrous" for the country. Levy has met strong opposition to his fiscal austerity plan in Congress and from Brazilian industry sectors. (Reporting by Anthony Boadle, Caroline Stauffer and Lisandra Paraguassu) ((anthony.boadle@thomsonreuters.com; +55 61 3426-7018; Reuters Messaging: anthony.boadle.thomsonreuters.com@reuters.net;)) Keywords: BRAZIL ECONOMY/ROUSSEFF

HIGHLIGHTS-Polish central bank comments after rate decision

September 02, 2015 - reuters.com

WARSAW, September 2 (Reuters) - Following are comments by Polish central bank governor Marek Belka on Wednesday after the bank left its key interest rate unchanged at 1.50 percent. ID:nW8N10P028 The central bank's statement after the decision is available at http://www.nbp.pl/en/aktualnosci/2015/mpc_2015_09_02.pdf DEFLATION As far as the path of deflation is concerned, I can say that according to the latest forecast of (central bank's) experts, it is practically unchanged. I think we moved it by 0.1 percentage point. We will most likely get out of deflation in November. GDP GROWTH We also do not see any big tragedy here. I do not think that economic growth (forecast) of 3.6 percent to be seriously threatened. We must live in a wonderful world, if we are fascinated by the fact growth is at 3.4 percent rather than 3.6 percent. RATES Interest rates will most likely remain unchanged by year-end. DATA Indeed, the latest data are not great. ... Indeed, the (manufacturing) PMI is souring the sentiment, data in the second quarter (GDP data) were weaker, but if we seasonally adjusted them, there would be no big difference here. ON FX LOANS, ZLOTY Our unequivocal criticism of the solutions proposed in this respect, which we have expressed publicly, concerns primarily the undermining of the banks' financial stability. And I want to say to those who are surprised that we care for the well-being of banks that there is almost 850 billion zlotys ($225.68 billion) of our money (deposited) there and we are worried most about depositors. Financial instability means uncertainty concerning deposits. For this reason, we assess the proposals of converting (FX) loans (into zlotys) negatively. Additionally, there is the issue of a sudden impact on the zloty exchange rate. A sudden conversion would mean a risk of a significant weakeing of the zloty, and hence a rise in the costs of foreing exchange-denominated loans. So, we would shoot ourselves ... in the foot. ON CPI TARGET We talked about the assumptions for monetary policy for 2016. We will approve them on September 15. There is no support for revolutionary proposals in the Council, aimed, for example, at changing the inflation target. But we discussed by the way the subject that is already discussed in the world - whether the strategy of direct inflation targetting, as it is understood today, is appropriate for current conditions. But this does not mean a change in our policy. (Reporting by Marcin Goclowski; Editing by Marcin Goettig) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND CENBANK/RATES

POLONIA Rate stays unchanged

September 02, 2015 - reuters.com

WARSAW, Sep 2 (Reuters) - POLONIA the reference rate for Overnight deposits amounted to 1.45 percent. The volume of transactions concluded till 16:30 by banks participating in POLONIA fixing amounted to 1,830 mln PLN. Note: Description of reference rate at: http://www.acipolska.pl/ ((warsaw.newsroom@reuters.com))

FOREX-Dollar pivots to gains as equities steady

September 02, 2015 - reuters.com

* Dollar reclaims ground lost to euro and yen * Wall Street rallies * U.S. hiring data feed rate-hike speculation (Recasts, adds U.S. data, quotes and changes byline and dateline; previous LONDON) By Michael Connor NEW YORK, Sept 2 (Reuters) - The dollar rose on Wednesday as fragile global stock markets steadied and U.S. hiring data encouraged speculation that Federal Reserve policymakers will raise interest rates later this month. Stock market gains, including a rise of about 1 percent .SPX in early Wall Street trading, slowed a rush to unwind carry trades that have boosted the safe-haven yen and the low-yielding euro in the past few weeks. Both fell against the dollar on Wednesday. China's slowing and worries about global growth had prompted investors to cut unfavourable bets in the yen and the euro, both of which have been popular for funding trades involving the sale of low-yielding currencies to buy riskier, higher-yielding assets. The dollar index .DXY , a measure of six major currencies valued against the greenback, was last up 0.40 percent and had added to gains when payrolls processor ADP reported that U.S. private payrolls increased 190,000 last month. While that was below economists' expectations for a gain of 201,000 jobs, it was a step up from the 177,000 positions created in July and was followed by government data showing nonfarm productivity advanced at its fastest pace in 1-1/2 years during the second quarter. ID:nL1N1180PF "The data lean in the direction of a rate hike," said David Gilmore, partner at Foreign Exchange Analytics in Essex, Connecticut. The chances of an interest rate hike this month, which would add to the allure for investors of dollar-denominated assets, had been dulled by a global stock market selloff following poor economic data from China. The dollar was last up 0.75 percent at 120.10 yen JPY= , rising from a low of 119.225 yen as calm returned to equity markets. The yen had jumped about 1.6 percent on Tuesday when global stocks fell sharply. With eyes also on Thursday's European Central Bank meeting, the euro fell 0.6 percent to $1.1210 EUR= , having rallied 0.9 percent on Tuesday when it rose to $1.1332. The dollar gained more than 1 percent against the Swiss franc CHF= to 0.9680 francs. Meanwhile, the Australian dollar earlier hit a 6-1/2-year low of $0.6982, pummelled by sliding oil and commodity prices. Its decline was accelerated by weaker-than-expected domestic growth in the second quarter due to falling exports, and it was last trading flat at $0.7021. ECONAU China is a big export market for Australia and the Aussie is used as a liquid proxy for exposure to that country. (Reporting By Michael Connor in New York; Editing by Meredith Mazzilli) ((michael.connor@thomsonreuters.com; 646 223 6309; Reuters Messaging: michael.connor.reuters.com@reuters.net)) Keywords: MARKETS FOREX/

Poland's c.bank head calls story of Nazi train find a hoax

September 02, 2015 - reuters.com

WARSAW, Sept 2 (Reuters) - Poland's central bank governor Marek Belka said on Wednesday that the story of an alleged finding of a Nazi train in Poland that could contain jewels was in his opinion a hoax. Asked if potentially the gold found in the train could add to the bank's reserves, Belka said: "I think nobody (at the central bank) even thought to devote a second to this issue. This is some hoax." Poland's Deputy Culture Minister said last week he was almost certain Poland had located a Nazi train rumored to have gone missing near the close of World War Two loaded with guns and jewels. ID:nL5N1134VR (Reporting by Jakub Iglewski and Pawel Sobczak; Writing by Marcin Goettig; Editing by Marcin Goclowski) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND WW2/TRAIN CENBANK

Brazil planning minister says looking to reverse budget deficit

September 02, 2015 - reuters.com

BRASILIA, Sept 2 (Reuters) - Brazil's government is working on midterm and long-term measures to improve its fiscal accounts, Planning Minister Nelson Barbosa told journalists on Wednesday, two days after submitting a 2016 budget bill projecting a primary deficit. ID:nL1N1160UJ (Reporting by Luciana Otoni) ((brad.c.haynes@thomsonreuters.com; +55 11 5644 7725; Reuters Messaging: brad.c.haynes.thomsonreuters.com@reuters.net)) Keywords: BRAZIL ECONOMY/FISCAL

Polish c.bank head says expects flat rates until year-end

September 02, 2015 - reuters.com

WARSAW, Sept 2 (Reuters) - Poland's central bank head Marek Belka said on Wednesday that he expects interest rates to remain unchanged until the end of 2015, while prospects for monetary policy next year are uncertain. Belka also said that deflation in Poland will most likely end in November. He said he does not see any serious threats to the bank's 2015 economic growth forecast of 3.6 percent. (Reporting by Jakub Iglewski and Pawel Sobczak; Writing Marcin Goclowski; Editing by Marcin Goettig) ((marcin.goclowski@thomsonreuters.com; +48 22 6539724; Reuters Messaging: marcin.goclowski.reuters.com@thomsonreuters.net)) Keywords: POLAND RATES/BELKA

London gold 1500 fix - Sept 2 - 1137.75 dlrs

September 02, 2015 - reuters.com

Danish FX reserves fall more than expected in August

September 02, 2015 - reuters.com

COPENHAGEN, Sept 2 (Reuters) - Denmark's foreign exchange reserves fell to 536.2 billion Danish crowns ($81.1 billion) in August from 583.2 billion crowns at the end of July. Economists surveyed by Reuters had expected the forex reserves to fall to 558.2 billion crowns by end-August. The central bank intervened in the foreign exchange market by buying 48.1 billion crowns in August to keep the currency stable against the euro, it said. ($1 = 6.6128 Danish crowns) (Reporting by Teis Jensen; editing by Alexander Tange) ((teis.jensen@thomsonreuters.com; +45 33969653; Reuters Messaging: teis.jensen.thomsonreuters.com@reuters.net)) Keywords: DENMARK RESERVES/

Poland's c.bank sees stable GDP, higher uncertainty on CPI

September 02, 2015 - reuters.com

WARSAW, Sept 2 (Reuters) - Polish rate-setting panel said on Wednesday that the latest data indicate that economic growth will remain stable in the coming quarters, while inflation may return to the bank's 2.5-percent target slower than previously expected. "In the Council's opinion, price dynamics will continue to rise slowly in the coming quarters. Meanwhile, a rise in the risk of a deeper slowdown in emerging economies and commodity prices fall increase the uncertainty about the pace of the CPI return to the target," the Monetary Policy Council said in a statement. "July output and retail sales data point to a stabilisation of economic growth in the coming quarters," it also said. The full text of the statement is available at: http://www.nbp.pl/en/aktualnosci/2015/mpc_2015_09_02.pdf (Reporting by Jakub Iglewski and Pawel Sobczak; Writing by Marcin Goclowski; Editing by Marcin Goettig) ((marcin.goettig@thomsonreuters.com; +48226539720; Reuters Messaging: marcin.goettig.reuters.com@thomsonreuters.net)) Keywords: POLAND CENBANK/RATES STATEMENT

South African economy facing growth constraints -finmin

September 02, 2015 - reuters.com

CAPE TOWN, Sept 2 (Reuters) - Volatility in capital flows and the foreign exchange rate were adding to South Africa's economic challenges and any progress to reverse a slowing economy will only be felt in the medium to long term, Finance Minister Nhlanhla Nene said on Wednesday. "There is indeed no doubt that South Africa faces significant constraints to faster economic growth," he told parliament in response to questions. (Reporting by Wendell Roelf; Editing by James Macharia) ((wendell.roelf@thomsonreuters.com; +27 82 893 6088;)) Keywords: SAFRICA ECONOMY/

GLOBAL MARKETS-Markets on edge as policymakers flex muscles

September 02, 2015 - reuters.com

* Europe flat, U.S. futures rise as China calms * ECB seen taking dovish stance at Thursday meet * U.S. private payrolls data due at 1215 GMT * Oil extends losses on weak economic outlook (Adds U.S. equity futures, updates prices) By Lionel Laurent LONDON, Sept 2 (Reuters) - China's moves to steady its financial markets with a mixture of curbs and support, combined with investor bets on more help from major central banks, helped stock markets recover some of their recent losses on Wednesday. U.S. equity futures SPc1 were up 0.7 percent and European equities were broadly flat at 1157 GMT, building on early relief after Chinese stocks managed to bounce from steep losses ID:nZZN2RJE00 . Commodities stocks were hit hard, however, as U.S. crude CLc1 fell 84 cents to $44.57 a barrel. Brent crude LCOc1 was down 61 cents to $48.95. As fears about China's economic slowdown and its impact on world growth rattle markets, its central bank has pumped cash into the economy and investors now bet the U.S. Federal Reserve will delay an interest rate rise that had been expected as early as this month. U.S. private employment data due later on Wednesday, a precursor to Friday's critical non-farm payroll data, is expected to show firms added more jobs in August than July. "The general level of volatility is going to stay for some time. People are still nervous despite several policy responses in China," Clairinvest fund manager Ion-Marc Valahu said, adding he did not expect the market to close at a new low. With the European Central Bank meeting on Thursday, traders said there were growing expectations for a dovish stance to soothe markets. The ECB launched its bond-buying scheme, or quantitative easing, this year and it has pledged to intervene further if needed. "Investors are keenly awaiting (ECB President Mario) Draghi's press conference tomorrow and a lot of investors are not taking major positions ahead of that," said RIA Capital Markets strategist Nick Stamenkovic. "The likelihood is that he is going to adopt a dovish posture given the rising global headwinds and the market will pay particular attention to the inflation forecasts for 2016 and 2017." German 10-year yields DE10YT=TWEB , the benchmark for euro zone borrowing costs, were 3 basis points down at 0.78 percent, retreating from a two-week high of 0.82 percent hit on Monday. Yields on other top-rated bonds were down a similar amount. The dollar rose as steadier markets took the heat out of a rush to unwind carry trades that boosted the safe-haven yen and the low-yielding euro in recent weeks. "There has been a moderation in risk aversion with European stocks and Wall Street stock futures in the green. That has seen the yen give up some of its recent gains," said Alvin Tan, currency strategist at Societe Generale. "U.S. payrolls will be the focus, but I doubt it will change the current debate over whether the Federal Reserve will hike rates in the near term or not." Emerging market stocks fell for the third straight day, down half a percent and approaching recent 6-year lows .MSCIEF while the rouble extended the previous session's 3.8 percent fall against the dollar which was the biggest one-day loss in three months RUB= . The rouble was down 2 percent against the dollar, adding to the previous day's 3.8 pct loss which was the biggest one day fall in three months. Russian 5-year credit default swaps rose 15 basis points to two-week highs. The moves come as oil prices slide further and the West extends sanctions against Moscow. Asian shares fell for a third straight day on Wednesday as weak manufacturing reports from China, the United States and Europe fuelled worries about slowing global growth. (Reporting by Lionel Laurent; Editing by Toby Chopra/Ruth Pitchford) ((lionel.laurent@thomsonreuters.com; +44 207 542 9746; Reuters Messaging: lionel.laurent.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

UPDATE 2-S.African mine workers end underground sit-in at Sibanye Gold

September 02, 2015 - reuters.com

* Mine workers protest against death of co-workers * Wildcat underground protest ends on second day * Company says workers have agreed to come to surface (Adds detail, NUM union comment) By Zandi Shabalala JOHANNESBURG, Sept 2 (Reuters) - More than 1,000 South African workers at a Sibanye Gold SGLJ.J mine have ended a two-day sit-in to protest against the deaths of colleagues, a union and company officials said on Wednesday. South Africa's mines are the deepest and among the most dangerous in the world. Mining companies are required to halt operations after fatalities, leading to production losses. Sibanye spokesman James Wellsted said the sit-in was a wildcat strike and the company would take disciplinary steps against the mine workers. "We will be taking disciplinary action, we have lost two days of production," he said. The workers were protesting against Sibanye's refusal to take responsibility for deaths which occurred over the last few months, Manzini Zungu, spokesman for the Association of Mineworkers and Construction Union (AMCU), said. He said the workers began their protest on Tuesday at Sibanye's Driefontein mine and were demanding the deaths of the employees should be treated as a mine accident but the company was disputing the issue. Driefontein mine is located in Carletonville, about 70 km (42 miles) west of Johannesburg. The mine is one of the deepest in the world, reaching depths about 4 kms. "The mine workers are saying that those workers died during working hours, so that death should be classified as a mine accident which is what the mine is disputing," Joseph Mathunjwa, president of the hardline AMCU union, told eNCA news channel. Mines are required by law to halt production if a death or injury is caused through mining activity. A spokesman for AMCU said workers had returned to the surface after a union leader went underground to address them. AMCU, which represents 29 percent of the workforce in the gold sector, led a five-month wage strike last year in the platinum sector. Livhuwani Mammburu, a spokesman for the rival National Union of Mineworkers, which represents the majority of gold mine workers, said some of its members were part of the sit-in. Mines minister Ngoako Ramatlhodi said in June that 2014 was the industry's "safest year" with deaths falling by 86 percent to 84 fatalities from 615 in 1993. ID:nL8N0Z92KC Under apartheid, scant attention was paid to the safety or well-being of an overwhelmingly black workforce. (Additional reporting by Tiisetso Motsoeneng; Editing by James Macharia and Mark Potter) ((zandi.shabalala@thomsonreuters.com; +27 11 775 3158; Reuters Messaging: zandi.shabalala.thomsonreuters.com@reuters.net)) Keywords: SAFRICA MINING/

S.Africa's Sibanye Gold says workers end underground sit-in

September 02, 2015 - reuters.com

JOHANNESBURG, Sept 2 (Reuters) - South Africa's Sibanye Gold SGLJ.J said on Wednesday workers who staged a two-day underground sit-in at its Driefontein mine were returning to the surface. Spokesman James Wellsted said Sibanye would take disciplinary action against the mineworkers as the strike was illegal and had cost the company two days of production. (Reporting by Zandi Shabalala; Editing by James Macharia) ((zandi.shabalala@thomsonreuters.com; +27 11 775 3158; Reuters Messaging: zandi.shabalala.thomsonreuters.com@reuters.net)) Keywords: SAFRICA MINING/DISCIPLINARY

S.Africa's Sibanye Gold says workers end underground sit-in at mine

September 02, 2015 - reuters.com

JOHANNESBURG, Sept 2 (Reuters) - South Africa's Sibanye Gold SGLJ.J said more than 1,000 workers staging an underground sit-in at the gold producer's Driefontein mine have agreed to come back to the surface. "They have agreed to come up and they will be coming up from underground now," said James Wellsted, spokesman for the gold producer said. (Reporting by Tiisetso Motsoeneng; Editing by James Macharia) ((tiisetso.motsoeneng@thomsonreuters.com; +27 11 775 3122; Reuters Messaging: tiisetso.motsoeneng.thomsonreuters.com@reuters.net)) Keywords: SAFRICA MINING/SIBANYE GOLD

London gold 1030 fix - Sept 2 - 1140.00 dlrs

September 02, 2015 - reuters.com

S.African mine workers stage underground sit-in at Sibanye - union

September 02, 2015 - reuters.com

JOHANNESBURG, Sept 2 (Reuters) - More than 1,000 mineworkers at a South African mine owned by Sibanye Gold SGLJ.J are staging a sit-in to protest the deaths of fellow miners two weeks ago, the president of the Association of Mineworkers and Construction Union said on Wednesday. Joseph Mathunjwa told news channel eNCA that mineworkers were protesting over Sibanye's refusal to take responsibility for the deaths and begun their protest on Tuesday. James Wellsted, Sibanye's spokesman told eNCA that the sit-in was a wild-cat strike, and would not engage the workers while they were underground. (Reporting by Zandi Shabalala; Editing by James Macharia) ((tiisetso.motsoeneng@thomsonreuters.com; +27 11 775 3122; Reuters Messaging: tiisetso.motsoeneng.thomsonreuters.com@reuters.net)) Keywords: SAFRICA MINING/

GLOBAL MARKETS-Markets on edge as policymakers flex muscles

September 02, 2015 - reuters.com

LONDON, Sept 2 (Reuters) - Fresh government intervention to support China's jittery markets and bets on a more dovish stance from central bankers provided limited respite from a stock market sell-off on Wednesday as oil resumed its fall. European equities gave up early gains, with commodities stocks the hardest hit, as U.S. crude CLc1 fell more than $1 to $44.39 a barrel. Brent crude LCOc1 was down 89 cents to $48.67. There had been some early relief after Chinese stocks managed to bounce from steep losses and end the day flat, following fresh supportive measures from brokerages eased investor fears of a trading crackdown from Beijing. ID:nZZN2RJE00 Benchmark indexes in Paris, Frankfurt and Milan were broadly flat and outperforming a slightly negative European market at 0842 GMT. ID:nZZN2RJE00 "Trader and investor nerves are a bit fragile at the moment...People are just unsure at the moment of whether this is a good buying opportunity or not," said Paul Chesterton, a trader at brokerage Peregrine & Black. A recent surge in financial market volatility, driven by fears over China's economic slowdown and its impact on world growth, has seen the Chinese central bank pump cash into the economy and also fuelled bets that the U.S. Federal Reserve will delay raising interest rates as early as this month. With the European Central Bank's policy meeting due on Thursday, traders said there were growing expectations for a dovish stance in the wake of the market turmoil. The ECB launched its bond-buying scheme, or quantitative easing, this year and it has pledged to intervene further if needed. "Investors are keenly awaiting (ECB President Mario) Draghi's press conference tomorrow and a lot of investors are not taking major positions ahead of that," said RIA Capital Markets strategist Nick Stamenkovic. "The likelihood is that he is going to adopt a dovish posture given the rising global headwinds and the market will pay particular attention to the inflation forecasts for 2016 and 2017." German 10-year yields DE10YT=TWEB , the benchmark for euro zone borrowing costs, were 1 basis point lower at 0.79 percent. Yields on other top-rated bonds were down by a similar amount. The U.S. dollar rose and took the heat out of a rush to unwind carry trades that boosted the safe-haven yen and the low-yielding euro in recent weeks. "There has been a moderation in risk aversion with European stocks and Wall Street stock futures in the green. That has seen the yen give up some of its recent gains," said Alvin Tan, currency strategist at Societe Generale. "U.S. payrolls will be the focus, but I doubt it will change the current debate over whether the Federal Reserve will hike rates in the near term or not." Emerging market stocks fell for the third straight day, down half a percent and approaching recent 6-year lows .MSCIEF while the rouble extended the previous session's 3.8 percent fall against the dollar which was the biggest one-day loss in three months RUB= . Asian shares fell for a third straight day on Wednesday as weak manufacturing reports from China, the United States and Europe fuelled worries about slowing global growth. (Reporting by Lionel Laurent; Editing by Toby Chopra) ((lionel.laurent@thomsonreuters.com; +44 207 542 9746; Reuters Messaging: lionel.laurent.thomsonreuters.com@reuters.net)) Keywords: MARKETS GLOBAL/

INDICATORS - Kazakhstan - Sept 2

September 02, 2015 - reuters.com

PRECIOUS-Gold struggles on dollar, fails to benefit from falling equities

September 02, 2015 - reuters.com

* Gold steady after four-day advance * Asian stocks retreat on global growth worries * Coming Up: U.S. ADP national employment; 1215 GMT (Updates prices) By Manolo Serapio Jr MANILA, Sept 2 (Reuters) - Gold steadied on Wednesday with appetite for the metal soured by a firmer dollar despite weaker Asian equities, and failure to breach a key resistance and a looming U.S. rate hike suggest more downside risk. Asian stocks sagged after sharp overnight losses on Wall Street, fed by worries over weak Chinese manufacturing data. Chinese stocks fell again in a seesaw session despite pledges by a number of brokerages to increase their stock investment to support the market. MKTS/GLOB Spot gold XAU= was flat at $1,140.70 an ounce by 0624 GMT, after touching a one-week high of $1,147.16 on Tuesday. Gold has failed to convincingly breach the $1,145 resistance even in the face of a 3 percent slide in U.S. stocks on Tuesday, said Howie Lee, analyst at Phillip Futures in Singapore. "This suggests that in the short term, stock market meltdown or no meltdown, gold prices are unwilling to move above $1,145 (and) it will take a way stronger catalyst, say a very weak nonfarm payrolls number this Friday, to substantially bring prices (higher)," Lee wrote in a note to clients. A U.S. private employment report later in the day could give a rough guide on the wider nonfarm payrolls data on Friday. Some economists say strong employment growth in August could help cement expectations that the Federal Reserve will raise interest rates for the first time in nearly a decade at its next meeting on Sept. 16-17. Boston Fed President Eric Rosengren said the U.S. central bank will probably only gradually raise interest rates, irrespective of whether it decides to take the first step a few months earlier or later. ID:nN9N0ZQ01D Non-interest bearing gold has been hit by a looming hike in U.S. interest rates, shifting funds to the dollar. But some analysts say the dollar could also be prone to profit-taking when the Fed does raise rates, which should support gold. Tuesday marked spot gold's fourth day of gains, but technical analysts at ScotiaMocatta said "it is hard to get too bullish considering the falls are more significant than the bounces." "We believe this is a consolidation situation with only a breach of $1,168 bringing in fresh buying," they said. U.S. gold for December delivery GCcv1 was flat at $1,140.20 per ounce. Spot silver XAG= was also steady at $14.57 an ounce, palladium XPD= gained 0.7 percent to $571.55 and platinum XPT= rose 0.5 percent to $1,005.50. (Reporting by Manolo Serapio Jr.; Editing by Himani Sarkar and Anand Basu) ((manolo.serapio@thomsonreuters.com)(+632 841 8972)(Reuters Messaging: manolo.serapio.thomsonreuters.com@reuters.net Twitter: @MannySerapio))

Keywords: MARKETS PRECIOUS/

MIDEAST STOCKS - Factors to watch - Sept 2

September 02, 2015 - reuters.com

DUBAI, Sept 2 (Reuters) - Here are some factors that may affect Middle East stock markets on Wednesday. Reuters has not verified the press reports and does not vouch for their accuracy. INTERNATIONAL/REGIONAL * GLOBAL MARKETS-Asian shares fall for 3rd day on global growth concerns MKTS/GLOB * MIDEAST STOCKS-Gulf markets join global equity slide on China fears ID:nL5N117347 * MIDEAST DEBT-Beating state debt addiction proves hard for UAE banks ID:nL8N0ZA1YX * Oil prices extend losses on U.S. oil inventory, manufacturing data O/R * Gold slips on firmer dollar, no benefit from equities fall ID:nL4N1181DE * Israel slams Palestinians' push to fly their flag at UN ID:nL1N118018 * Vulnerability to foreign-currency debt shifting in emerging markets - Moody's ID:nL5N1173CS * Iran nuclear deal backers near votes to protect pact in U.S. Congress ID:nL1N1171TW * Libya's official government bans Yemenis, Iranians, Pakistanis from entry ID:nL5N117475 * Beirut protesters occupy ministry, demand minister resigns ID:nL5N117224 * Kurds suspect another chemical attack by Islamic State in Iraq ID:nL5N1173CA * Satellite images confirm major temple destroyed in Syria's Palmyra - U.N. ID:nL5N1171L7 * OPEC magazine op-ed that fuelled oil rally baffles insiders ID:nL5N117376 * Civilians pay heavy price in Yemen's Taiz, health care collapses - UN ID:nL5N1173AJ * Iraq's August southern oil exports slip slightly ID:nL5N11723E * Weak growth keeps emerging assets on the ropes ID:nL5N11712U TURKEY * Turkish raids on firms close to cleric raise fears of pre-election crackdown ID:nL5N1170NA * Turkey's G20 presidency becomes casualty of political turmoil ID:nL5N1171B8 * Turkey's August exports fall 4.9 percent - exporters assembly ID:nI7N10A01J EGYPT * Egyptian pound steady at official auction, weaker at exchange bureaus ID:nL5N1171KX * Egypt's El Sewedy Electric posts Q2 net profit of $68.63 mln ID:nC6N0YN018 SAUDI ARABIA * Saudi Telecom spending billions to cope with data traffic - CEO ID:nL5N1172IV * Saudi Arabia in dilemma over Asia crude oil prices in Oct ID:nL4N11735V UNITED ARAB EMIRATES * UAE's Mubadala unit Strata sees 15 pct revenue growth in 2015 - CEO ID:nL5N1172WT * SKAI Holdings secures $299 mln loan to fund Dubai hotel schemes ID:nL5N1171IT * Iranian investment in Dubai property to rise if sanctions ease -report ID:nL5N11633J KUWAIT * Kuwait charges 26 suspects over arms cache, alleges Iran link ID:nL5N1172SE (Compiled by Dubai newsroom) ((dubai.newsroom@reuters.com)) Keywords: MIDEAST FACTORS/

PRECIOUS-Gold drops after 4-day gain, weaker equities may support

September 02, 2015 - reuters.com

MANILA, Sept 2 (Reuters) - Gold edged lower on Wednesday after a four-day advance that had been fuelled as uncertainty over the fate of China's economy hit global equities. FUNDAMENTALS * Spot gold XAU= was down 0.3 percent at $1,136.51 an ounce by 0048 GMT, after touching a one-week high of $1,147.16 on Tuesday. * U.S. gold for December delivery GCcv1 slipped 0.3 percent to $1,136.20 per ounce. * Sustained losses in Asian equities could switch some funds to gold after data showed U.S. factory activity hit a more than two-year low in August, coming on the heels of a survey showing China's manufacturing sector shrank at its fastest pace in three years last month. ID:nL5N11715H * The Federal Reserve will probably only gradually raise interest rates, irrespective of whether it decides to take the first step a few months earlier or later, Boston Fed President Eric Rosengren said. ID:nN9N0ZQ01D * All eyes will be on Friday's U.S. nonfarm payrolls with economists saying strong employment growth in August could help cement expectations that the Fed will raise interest rates for the first time in nearly a decade at its next meeting on Sept. 16-17. * For the top stories on metals and other news, click TOP/MTL or GOL MARKET NEWS * Asian shares slipped after weak manufacturing activity reports from both the U.S. and China sent Wall Street reeling, while the dollar steadied after steep losses. MKTS/GLOB DATA AHEAD (GMT) 0900 Euro zone Producer prices Jul 1215 U.S. ADP national employment Aug 1345 U.S. ISM-New York index Aug 1400 U.S. Factory orders Jul (Reporting by Manolo Serapio Jr.; Editing by Joseph Radford) ((manolo.serapio@thomsonreuters.com; +632 841 8972; Reuters Messaging: manolo.serapio.thomsonreuters.com@reuters.net Twitter: @MannySerapio))

Keywords: MARKETS PRECIOUS/

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.