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Dollar falls against rivals
Rising share prices in Europe and Asia drive demand for higher-yielding currencies.
The U.S. dollar fell against the euro and the pound Tuesday as rising stock prices abroad increased the appetite of investors for higher yield currencies.

The euro rose almost 2% to buy $ 1.2885 from $ 1.2644 late Monday in New York. The 15-nation currency slid to a low of 1.2547 U.S. dollars overnight before rebounding at the start of the European session.

Great Britain pounds gained 1% to U.S. $ 1.5981 from $ 1.5899.

Against the yen, the dollar traded at 99.51 yen from 99.12 yen.

The dollar gained significant ground against the euro and the pound in October as volatile financial markets slowed the appetite of investors for risk. However, recent advances in Asian and European stock markets appear to have stimulated demand for more risky assets such as high-yielding currencies.

"Risk appetite is healthy, despite some disappointing economic data, suggesting investors remain focused on falling interest rates and improving credit conditions," said Steve Malyon, currency strategist at Scotia Capital in Toronto.

On Wall Street, meanwhile, stocks rose at the opening bell. The Dow Jones industrial average gained almost 2% in the first minutes of trade.

The breakthrough came after Japan's Nikkei index rallied 6.3% overnight. Other Asian markets also advanced.

European markets Published solid gains for the sixth session in a row. The CAC-40 in Paris was 2.2% in afternoon trading. FTSE of Britain was up about 2% and the Frankfurt DAX added 1.6%.

The gains in stock markets from the U.S. Voters head to the polls to determine who will be the next president.

"Today in the U.S. presidential elections are an important political event in the financial market front," said Ashraf Laïdi, chief currency analyst at CMC Markets in New York.

But this week the string of interest rate decisions from the Bank of England and European Central Bank is likely to have the last word with regard to market impact, "he added Laïdi.

The European Central Bank is expected to cut its benchmark rate by 50 percentage points to 3.75% when it meets on Thursday. UK policy makers are also expected to cut interest rates by 50 percentage points to 4%.

On Tuesday, Australia's central bank cut its benchmark interest rate by a larger than expected three-quarters of a percentage point. The Bank of Japan lowered rates last Friday.

The interest rates on monetary policies are the primary tool for boosting economic activity. However, currency traders are often wary of lower interest rates because it can increase inflation and the value of a currency.

article source from bbc news

Wall Street set to drive on Election Day
Futures rise, tracking gains in Europe. Trade is expected to moderate as presidential race nears finish line.
With less than an hour before the markets opened, the Dow Jones Industrial Average, S & P 500 and Nasdaq 100 futures were rising higher.

Futures index measure of current values against the perception of future performance and provide an indication of how open markets when trading starts in New York.

"People are holding a thawing in the credit markets," said Art Hogan, chief market strategist at Jefferies & Co., noting that today is the 17th consecutive day of declines for the Libor, or London Interbank Offered Rate, an average Daily the bank at rates of bank loans from 16 banks in the UK

The markets received a boost as loan rates have improved in the midst of efforts by the U.S. and governments around the world to get money flowing again. Last week, the Federal Reserve cuts, and the European Central Bank and the Bank of England is widely expected to reduce rates this week.

However, stocks might struggle to maintain the direction that investors await the outcome of the race for the White House. Voters packed the polls after the initiative, the presidential candidates, Senator John McCain (R-Ariz.) and Sen. Barack Obama (D-Ill.), wrapped up their campaigns in the morning.

Hogan said that an Obama victory has a price in the markets because of their lead in pre-polls on election day. A victory by McCain would be more of a surprise to markets, he added.

The stocks were in a holding pattern Monday. The Dow Jones industrial average lost some points. The S & P 500 index 0.3% lights and the Nasdaq composite added 0.3%.

Economy: Investors will have a report on factory orders for September, due out at 10 am ET. Economists expected a decline of 0.8% for the month of September, according to a consensus of projections of Briefing.com. This is compared with August, when factory orders plunged 4%.

Global markets: Japan, the Nikkei index rose by 6%, but Asian markets finished the session mixed. European stocks gained in morning trading.

Oil and money: U.S. The dollar slipped against the euro and British pound, but rose against the yen. Oil prices are fixed, edging up from 45 cents per barrel to 64.36 dollars.

article source from bbc news

Stocks fall in volatile trade
World stock markets have been hit again with the main indexes in the U.S., Europe and Asia the day of closing down, after a session of volatile trading.

On Wall Street, the main Dow Jones index fell 2.42%, despite being driven earlier in the day by a surprise rise in new home sales in September.

The FTSE in London and Paris Cac close behind, with indices touching five years low during the day.

Before that, Japan's Nikkei index finished at a 26-years low.

The Dow Jones dropped 203 points to 8175.77. The broader S & P 500 closed down 3.18% at 844.95, and the high-tech Nasdaq fell 2.97% to 1505.90.

At the close the FTSE in London closed 0.79% or 30.77 points, to 3852.59.

In Paris the Cac fell by 3.96%, or 126 points, to 3067.35, while the Dax in Frankfurt was 0.91% at 4334.64, the shares of Volkswagen rose 146%.
Early in the FTSE has fallen by 5.6% to 3665 points - its lowest level since April 2003.

Pound also continued their recent declines, falling against the dollar to 1.5341 U.S. dollars in early trading before recovering slightly to 1.5591 U.S. dollars.

The euro was also lower, slipping to 1.2377 U.S. dollars, around levels last seen in April 2006, before returning to 1.2548 U.S. dollars.

FTSE 100 INDEX: October 27, 2008
FTSE 100 intraday chart
* All times GMT

"There are a lot of volatility, not only in the stock market, but in the interest rate and foreign exchange markets too," said Neil Parker, market strategist at Royal Bank of Scotland.

"We're going to see more big swings in the markets to see what the authorities are going to do."
Asian impact

Japan's Nikkei 225 index ended up 6.4% at its lowest level since 1982.

In the currency markets, the Japanese yen remained near its 13-year high against the U.S. dollar, despite threats of intervention G-7.

In other market news:

      * Oil prices fell to 17-month low. U.S. Light crude fell to 61.75 U.S. dollars per barrel. Brent was at 61.41 U.S. dollars.

      * In India SENSEX index fell 6.1% to its lowest level since November 2005 before closing 2.2%

      * The market in Seoul reversed earlier losses to close 0.8% after South Korea's central bank cut its main interest rate from 5% to 4.25% in a rare, unscheduled meeting

      * In Hong Kong, the Hang Seng closed down 12.7% in its biggest day drop since 1991
      * Chinese shares also fell, with the Shanghai Composite index lost 6.3% to its lowest level since September 2006
      * In the Philippines, the main index dropped 12.3%, as the country the second largest bank Banco de Oro Unibank reported a loss of 1.3bn pesos ($ 26.8m, £ 16.8m), due to its exposure to the U.S. investment bank Lehman Brothers
      * European Central Bank President Jean-Claude Trichet said another cut in interest rates for the euro is "possible"
      * Argentina fell more than 5%, closing at its lowest level in more than five years

"There's more pain left. The unrest appears to be no comprehensive solution soon," said Atul Mehra at brokerage JM Financial in Mumbai.

Yen Alert

Earlier on Monday the Group of Seven (G7) industrialized countries issued a statement warning that the strength of the yen was a threat to economic stability, which was taken as a threat of coordinated action to reduce the value of the currency.
While the yen weakened briefly, it soon went up to Friday's 13-year high against the dollar.

The yen has been strengthening as a result of the final carry trade, where traders given the Japanese currency and used it to buy currencies with higher interest rates.
As the difference between the types of Japanese and other countries in the world has diminished, traders have been putting an end to trade in, which means they have been using other currencies to buy yen, which has boosted the Japanese currency.

In other news currency, the Australian government intervened for the second time in support of its currency, which was trading at a 5-year low against the U.S. dollar. One U.S. dollar had a value of 1.64 Australian dollars.

Australia's central bank intervened last for over a year earlier and that had not done since 2001.

article source from bbc news

Wembley Stadium Refinance Loan
Wembley Stadium has refinanced the loan obtained to finance the rehabilitation of the English national football stadium.

The agreement relates to loans of £ 341.5m from £ 426.4m secured a financing package in the fall of 2002.

The stadium, a subsidiary of the FA, said it had obtained a more favorable interest rate on debt and extends the term of the loan 2018-2023.

It comes as Wembley emerged as a favorite to host the 2011 UEFA Champions League final.

In an effort to attract the Wembley final, the government has said that players from foreign teams will be exempt from any tax.

'Confidence'

In announcing the refinancing deal on Friday, Wembley Stadium said the move will result in a saving of around £ 3m a year.

Refinancing was led jointly by the lead bank for the original funding package, West LB, as well as the Commercial Bank of Barclays.

There were also financial support from The Royal Bank of Scotland, Lloyds TSB, Bank of Ireland and Banco Espírito Santo.

Alex Horne, the FA's Head of Operations, said the refinancing occurred at a difficult time for financial markets.

He said the move reflected "the high level of confidence that banks are taking place in the delivery of its business plan."

Mr Horne added: "The combination of debt and cheaper long-term repayment provides greater financial flexibility for the group of FA."

"Difficult conditions"

The new Wembley opened its doors 18 months ago, and now has hosted 50 major events, and had 3.5 million visitors.

"... We are particularly pleased to have closed this agreement in the teeth of the most difficult conditions we have ever seen in the credit markets," said Chris Heathcote, head of global infrastructure at West LB.

After two years of heavy losses, Wembley is expected to return a significant profit from next May.

In May the stadium posted an operating loss before interest and tax of £ 21.2m for 2007 - the first year it was open for business, but is expected to move into profit next May.

The north London stadium was due for completion in August 2005, but its development was beset by problems.

article source from bbc news