Regulators agree on global swap rules ahead of G20 summit

By Douwe Miedema

WASHINGTON | Fri Aug 30, 2013 4:32pm EDT

WASHINGTON (Reuters) - Finance watchdogs on Friday laid out joint rules for the $630 trillion derivatives industry that was at the core of the 2007-09 credit meltdown, in a report to the G20 most powerful economies of the world.

The high-level agreement comes ahead of a G20 summit next week in St Petersburg, Russia, where world leaders will discuss progress they have made to tighten the rules for banks and prevent a repeat of the devastating crisis.

While much progress toward the global reform agenda had been made, other points still needed to be sorted out, regulators from around the world said in a statement.

"The resolution of the unresolved issues is important," the group of supervisory agencies said in a report that was disseminated by the U.S. Commodity Futures Trading Commission, the country's top derivatives regulator.

Diverging views on how to rein in the banks that dominate derivatives trading caused a trans-Atlantic rift last year between Gary Gensler, head of the CFTC, and politicians and regulators in Europe and elsewhere.

But in July, the CFTC reached an agreement with the European Union that allowed foreign branches of banks to comply with local rules, as long as they are compatible with the rules their parent organizations must obey at home.

Regulators from Australia, Brazil, Europe, Hong Kong, Japan, Canada, Singapore, Switzerland and the United States now also broadly subscribe to that view, they said, explaining how they would assess whether the rules are comparable.

The principle allowing a bank branch to comply with foreign rules is known as equivalence, or substituted compliance.

While seemingly abstract, minute details in the hundreds of pages of new regulation written after the crisis can have a life-changing impact on banks such as JP Morgan Chase & Co (JPM.N), Bank of America Corp (BAC.N) or Citigroup Inc (C.N).

There could be an exception from the equivalence principle if a jurisdiction imposed requirements on trading that did not exist in the other jurisdiction, the regulators said.

In that case, the market parties would still have to comply with the requirements even if the rules in the two jurisdictions were comparable, the report said.

The same was true for clearing - the process where buyers and sellers send their orders through clearing houses, which function as traffic control centers.

Two areas still needed to be resolved, the regulators said. One was how to deal with local data protection laws that could block regulators' access to banks' books.

More work was also needed on the exact legal status of bank branches and guaranteed subsidiaries in foreign jurisdictions, something that can have an impact on whether the parent company is responsible for losses or not.

(Editing by Matthew Lewis)

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Central banks told to cooperate on managing global liquidity

The facade of the U.S. Federal Reserve building is reflected on wet marble during the early morning hours in Washington, July 31, 2013.

Credit: Reuters/Jonathan Ernst

JACKSON HOLE, Wyoming | Sat Aug 24, 2013 10:12am EDT

JACKSON HOLE, Wyoming (Reuters) - Central banks should coordinate to avoid unwanted side effects as they exit from ultra-easy monetary policies that have left the world awash in cheap money, top policymakers were told on Saturday.

Opening the second day of an annual monetary symposium in Jackson Hole, Wyoming, after a week in which several top emerging markets suffered steep losses, a former Bank of France deputy governor painted a grave picture of the problem.

"The main challenge will be to manage the consequences of monetary policies, and their evolutions, on cross-border liquidity movements," Jean-Pierre Landau concluded in a paper he presented to an audience that included top central bankers from advanced as well as emerging market economies.

"Amplifications, feedback loops and sensitivity to risk perceptions will complicate the task of exit and necessitate very close and constant dialogue and cooperation between central banks," said Landau, now a professor at Princeton.

But he lamented that the necessary coordination on monetary policy was unlikely, and warned of the potential for the "fragmentation" of global capital markets.

Stocks and currencies plunged in India, Indonesia, Brazil and Turkey this week as investors fretted over a looming reduction in the U.S. Federal Reserve's monthly bond purchases.

Turkish Central Bank Governor Erdem Basci was attending the conference, although his Brazilian counterpart, Alexandre Tombini, canceled to stay home and deal with the crisis.

The Fed's bond buying, or so-called quantitative easing, has been at the heart of its aggressive efforts to revive U.S. economic growth after it cut interest rates to nearly zero in 2008. Interest rates in Europe and Japan are also ultra-low.

However, the purchases have spurred massive capital inflows into faster growing emerging economies, which are now suffering as investors anticipate an end to the easy money.

COORDINATION

Landau acknowledged that central bankers dislike the idea of coordinating monetary policy because their job is to focus on domestic goals. But they worked well together during the 2007-2009 financial crisis, when the Fed, European Central Bank, Bank of Japan and other central banks coordinated rate cuts and currency swap lines.

As cross-border liquidity pressures build, they will find it productive to do so again, although cooperation is more likely through regulatory and financial structures aimed at preventing excessive leverage or harmful asset bubbles, he said.

In an ideal world, the cooperation would extend to monetary policy because policies in major economies such as the United States can have an international impact that amplifies their magnitude with domestic implications, Landau argued.

"The system itself is producing more accommodative monetary conditions than warranted by the situation," he said. "In a reverse environment, when monetary policies need tightening, the effects could be symmetrical and complicate the exit from non-conventional measures."

In addition, much could be gained through an international "lender of last resort," which would remove the motive for some nations to maintain massive foreign exchange reserves, he added.

"All countries have a common interest in finding ways to disconnect reserve accumulation from exchange-rate management," Landau said. "The need for national reserves could be reduced if credible mechanisms exist to provide for the supply of official liquidity on a multilateral basis."

That said, he freely admitted that this goal will be very hard to reach. Such an international agreement ultimately puts taxpayers in one country on the hook to bale out debtors in another, which would very hard to sell politically.

"It is hard to imagine that any government could bring the necessary fiscal backing to issuance of potentially unlimited liabilities to non-residents in times of crisis," Landau said.

As a result, the outlook for global capital markets is not encouraging, Landau said, warning of a "segmentation" between nations with surplus capital and others that will suffer from a dearth of investment due to a lack of access to capital.

"The most likely scenario is that of progressive fragmentation of the international financial system," he added.

(Reporting by Alister Bull. Editing by Andre Grenon)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Central banks told to cooperate on managing global liquidity

The facade of the U.S. Federal Reserve building is reflected on wet marble during the early morning hours in Washington, July 31, 2013.

Credit: Reuters/Jonathan Ernst

JACKSON HOLE, Wyoming | Sat Aug 24, 2013 10:12am EDT

JACKSON HOLE, Wyoming (Reuters) - Central banks should coordinate to avoid unwanted side effects as they exit from ultra-easy monetary policies that have left the world awash in cheap money, top policymakers were told on Saturday.

Opening the second day of an annual monetary symposium in Jackson Hole, Wyoming, after a week in which several top emerging markets suffered steep losses, a former Bank of France deputy governor painted a grave picture of the problem.

"The main challenge will be to manage the consequences of monetary policies, and their evolutions, on cross-border liquidity movements," Jean-Pierre Landau concluded in a paper he presented to an audience that included top central bankers from advanced as well as emerging market economies.

"Amplifications, feedback loops and sensitivity to risk perceptions will complicate the task of exit and necessitate very close and constant dialogue and cooperation between central banks," said Landau, now a professor at Princeton.

But he lamented that the necessary coordination on monetary policy was unlikely, and warned of the potential for the "fragmentation" of global capital markets.

Stocks and currencies plunged in India, Indonesia, Brazil and Turkey this week as investors fretted over a looming reduction in the U.S. Federal Reserve's monthly bond purchases.

Turkish Central Bank Governor Erdem Basci was attending the conference, although his Brazilian counterpart, Alexandre Tombini, canceled to stay home and deal with the crisis.

The Fed's bond buying, or so-called quantitative easing, has been at the heart of its aggressive efforts to revive U.S. economic growth after it cut interest rates to nearly zero in 2008. Interest rates in Europe and Japan are also ultra-low.

However, the purchases have spurred massive capital inflows into faster growing emerging economies, which are now suffering as investors anticipate an end to the easy money.

COORDINATION

Landau acknowledged that central bankers dislike the idea of coordinating monetary policy because their job is to focus on domestic goals. But they worked well together during the 2007-2009 financial crisis, when the Fed, European Central Bank, Bank of Japan and other central banks coordinated rate cuts and currency swap lines.

As cross-border liquidity pressures build, they will find it productive to do so again, although cooperation is more likely through regulatory and financial structures aimed at preventing excessive leverage or harmful asset bubbles, he said.

In an ideal world, the cooperation would extend to monetary policy because policies in major economies such as the United States can have an international impact that amplifies their magnitude with domestic implications, Landau argued.

"The system itself is producing more accommodative monetary conditions than warranted by the situation," he said. "In a reverse environment, when monetary policies need tightening, the effects could be symmetrical and complicate the exit from non-conventional measures."

In addition, much could be gained through an international "lender of last resort," which would remove the motive for some nations to maintain massive foreign exchange reserves, he added.

"All countries have a common interest in finding ways to disconnect reserve accumulation from exchange-rate management," Landau said. "The need for national reserves could be reduced if credible mechanisms exist to provide for the supply of official liquidity on a multilateral basis."

That said, he freely admitted that this goal will be very hard to reach. Such an international agreement ultimately puts taxpayers in one country on the hook to bale out debtors in another, which would very hard to sell politically.

"It is hard to imagine that any government could bring the necessary fiscal backing to issuance of potentially unlimited liabilities to non-residents in times of crisis," Landau said.

As a result, the outlook for global capital markets is not encouraging, Landau said, warning of a "segmentation" between nations with surplus capital and others that will suffer from a dearth of investment due to a lack of access to capital.

"The most likely scenario is that of progressive fragmentation of the international financial system," he added.

(Reporting by Alister Bull. Editing by Andre Grenon)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Central banks told to cooperate on managing global liquidity

JACKSON HOLE, Wyoming | Sat Aug 24, 2013 3:02pm BST

JACKSON HOLE, Wyoming (Reuters) - Central banks should coordinate to avoid unwanted side effects as they exit from ultra-easy monetary policies that have left the world awash in cheap money, top policymakers were told on Saturday.

Opening the second day of an annual monetary symposium in Jackson Hole, Wyoming, after a week in which several top emerging markets suffered steep losses, a former Bank of France deputy governor painted a grave picture of the problem.

"The main challenge will be to manage the consequences of monetary policies, and their evolutions, on cross-border liquidity movements," Jean-Pierre Landau concluded in a paper he presented to an audience that included top central bankers from advanced as well as emerging market economies.

"Amplifications, feedback loops and sensitivity to risk perceptions will complicate the task of exit and necessitate very close and constant dialogue and cooperation between central banks," said Landau, now a professor at Princeton.

But he lamented that the necessary coordination on monetary policy was unlikely, and warned of the potential for the "fragmentation" of global capital markets.

Stocks and currencies plunged in India, Indonesia, Brazil and Turkey this week as investors fretted over a looming reduction in the U.S. Federal Reserve's monthly bond purchases.

Turkish Central Bank Governor Erdem Basci was attending the conference, although his Brazilian counterpart, Alexandre Tombini, cancelled to stay home and deal with the crisis.

The Fed's bond buying, or so-called quantitative easing, has been at the heart of its aggressive efforts to revive U.S. economic growth after it cut interest rates to nearly zero in 2008. Interest rates in Europe and Japan are also ultra-low.

However, the purchases have spurred massive capital inflows into faster growing emerging economies, which are now suffering as investors anticipate an end to the easy money.

COORDINATION

Landau acknowledged that central bankers dislike the idea of coordinating monetary policy because their job is to focus on domestic goals. But they worked well together during the 2007-2009 financial crisis, when the Fed, European Central Bank, Bank of Japan and other central banks coordinated rate cuts and currency swap lines.

As cross-border liquidity pressures build, they will find it productive to do so again, although cooperation is more likely through regulatory and financial structures aimed at preventing excessive leverage or harmful asset bubbles, he said.

In an ideal world, the cooperation would extend to monetary policy because policies in major economies such as the United States can have an international impact that amplifies their magnitude with domestic implications, Landau argued.

"The system itself is producing more accommodative monetary conditions than warranted by the situation," he said. "In a reverse environment, when monetary policies need tightening, the effects could be symmetrical and complicate the exit from non-conventional measures."

In addition, much could be gained through an international "lender of last resort," which would remove the motive for some nations to maintain massive foreign exchange reserves, he added.

"All countries have a common interest in finding ways to disconnect reserve accumulation from exchange-rate management," Landau said. "The need for national reserves could be reduced if credible mechanisms exist to provide for the supply of official liquidity on a multilateral basis."

That said, he freely admitted that this goal will be very hard to reach. Such an international agreement ultimately puts taxpayers in one country on the hook to bail debtors in another, which would very hard to sell politically.

"It is hard to imagine that any government could bring the necessary fiscal backing to issuance of potentially unlimited liabilities to non-residents in times of crisis," Landau said.

As a result, the outlook for global capital markets is not encouraging, Landau said, warning of a "segmentation" between nations with surplus capital and others that will suffer from a dearth of investment due to a lack of access to capital.

"The most likely scenario is that of progressive fragmentation of the international financial system," he added.

(Reporting by Alister Bull. Editing by Andre Grenon)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Global stocks gain; doubts arise on end to Fed purchases

1 of 6. Traders work on the floor at the New York Stock Exchange, July 8, 2013.

Credit: Reuters/Brendan McDermid

NEW YORK | Fri Aug 23, 2013 9:23pm BST

NEW YORK (Reuters) - Benchmark stock indexes around the world edged higher on Friday, while the dollar fell after a U.S. government report on new single-family home sales raised doubts about the timing and extent of cuts to the Federal Reserve's stimulus program.

New home sales dropped 13.4 percent in July to an annual rate of 394,000 units, well below expectations, the Commerce Department said, dimming what has been a bright spot in the U.S. economic comeback.

Europe's main stock markets were steady to higher but attention remained firmly on Asia after a torrid week that has wiped billions of dollars from emerging markets for the second time in two months.

Yields on U.S. Treasuries traded lower but still near two-year highs, with investors reluctant to break out of recent ranges, given uncertainty around when the Fed might slow its massive bond-buying program. The benchmark 10-year U.S. Treasury note was up 18/32, its yield at 2.818 percent.

"This has been a very unique market situation, with the Fed stimulus being such an important component to the market rally. This is uncharted waters for us," said Gordon Charlop, managing director at Rosenblatt Securities in New York. "So regardless of what the move is, the fact you are someplace you haven't been before is cause for uncertainty."

The next Fed monetary policy meeting is set for September 17-18.

The Dow Jones industrial average rose 46.77 points or 0.31 percent, to 15,010.51, the S&P 500 gained 6.54 points or 0.39 percent, to 1,663.50 and the Nasdaq Composite added 19.085 points or 0.52 percent, to 3,657.792.

The biggest risk facing the U.S. economy is a premature policy tightening by the Federal Reserve, Stanford University economist Robert Hall told the Kansas City Federal Reserve Bank's annual conference in Jackson Hole, Wyoming.

MSCI's emerging share index had its first gain after six sessions in the red, while selling of India's rupee subsided after the currency's worst week against the dollar in decades.

"Hopefully the worst (of the emerging market selling) may now be over," said Hans Peterson, global head of asset allocation at SEB investment management. He added that his firm may soon start "bottom fishing" in Asia.

"It doesn't seem to be a repeat of the 1997 (Asian crisis) situation ... and it seems like people are not so keen on being extremely short anymore, so it might twist around a bit."

The dollar surrendered gains against a basket of currencies after earlier climbing to a three-week peak versus the yen, helped by the rise in U.S. bond yields on expectations the Fed will reduce its asset-buying program next month.

YIELDS BUILD

This week's market turbulence has been driven by growing evidence that the Fed is ready to start closing the taps on its huge stimulus program, a conviction that is being bolstered by strengthening global data.

Germany confirmed on Friday that its economy grew at a 0.7 percent rate in the second quarter, while Britain revised upward its growth numbers.

Purchasing managers' surveys this week showed better-than-expected growth in the euro zone, a Chinese manufacturing rebound and U.S. manufacturing activity at a five-month high.

Europe's FTSEurofirst 300, rose 0.4 percent on Friday. A rebound in Asia and Europe helped push MSCI's global share index up 0.8 percent, although it was not enough to prevent it heading for its third weekly fall.

EMERGING MARKET OUTFLOWS

U.S. Treasury yields tend to set the benchmark for borrowing costs across the globe, so their recent rise - expected to continue as the Fed winds down support - is making it more difficult for indebted countries and firms to pay their bills.

Data from Boston-based fund tracker EPFR Global on Thursday showed $1.3 billion fled emerging debt funds in the week ending August 21, the biggest outflow since mid-July.

Whereas May and June's sharp selloff in emerging markets calmed when the change in direction of U.S. market rates made shorting (betting against) those assets unprofitable, this time that did not happen, meaning the selling could run for longer.

Brent and U.S. crude found early support from disruptions to Libyan exports. Brent crude traded up 1 percent to $111.01 a barrel, and U.S. crude rose 1.3 percent to $106.43 a barrel.

(Reporting by Nick Olivari, editing by Dan Grebler and Nick Zieminski)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Central banks told to cooperate on managing global liquidity

The facade of the U.S. Federal Reserve building is reflected on wet marble during the early morning hours in Washington, July 31, 2013.

Credit: Reuters/Jonathan Ernst

JACKSON HOLE, Wyoming | Sat Aug 24, 2013 10:12am EDT

JACKSON HOLE, Wyoming (Reuters) - Central banks should coordinate to avoid unwanted side effects as they exit from ultra-easy monetary policies that have left the world awash in cheap money, top policymakers were told on Saturday.

Opening the second day of an annual monetary symposium in Jackson Hole, Wyoming, after a week in which several top emerging markets suffered steep losses, a former Bank of France deputy governor painted a grave picture of the problem.

"The main challenge will be to manage the consequences of monetary policies, and their evolutions, on cross-border liquidity movements," Jean-Pierre Landau concluded in a paper he presented to an audience that included top central bankers from advanced as well as emerging market economies.

"Amplifications, feedback loops and sensitivity to risk perceptions will complicate the task of exit and necessitate very close and constant dialogue and cooperation between central banks," said Landau, now a professor at Princeton.

But he lamented that the necessary coordination on monetary policy was unlikely, and warned of the potential for the "fragmentation" of global capital markets.

Stocks and currencies plunged in India, Indonesia, Brazil and Turkey this week as investors fretted over a looming reduction in the U.S. Federal Reserve's monthly bond purchases.

Turkish Central Bank Governor Erdem Basci was attending the conference, although his Brazilian counterpart, Alexandre Tombini, canceled to stay home and deal with the crisis.

The Fed's bond buying, or so-called quantitative easing, has been at the heart of its aggressive efforts to revive U.S. economic growth after it cut interest rates to nearly zero in 2008. Interest rates in Europe and Japan are also ultra-low.

However, the purchases have spurred massive capital inflows into faster growing emerging economies, which are now suffering as investors anticipate an end to the easy money.

COORDINATION

Landau acknowledged that central bankers dislike the idea of coordinating monetary policy because their job is to focus on domestic goals. But they worked well together during the 2007-2009 financial crisis, when the Fed, European Central Bank, Bank of Japan and other central banks coordinated rate cuts and currency swap lines.

As cross-border liquidity pressures build, they will find it productive to do so again, although cooperation is more likely through regulatory and financial structures aimed at preventing excessive leverage or harmful asset bubbles, he said.

In an ideal world, the cooperation would extend to monetary policy because policies in major economies such as the United States can have an international impact that amplifies their magnitude with domestic implications, Landau argued.

"The system itself is producing more accommodative monetary conditions than warranted by the situation," he said. "In a reverse environment, when monetary policies need tightening, the effects could be symmetrical and complicate the exit from non-conventional measures."

In addition, much could be gained through an international "lender of last resort," which would remove the motive for some nations to maintain massive foreign exchange reserves, he added.

"All countries have a common interest in finding ways to disconnect reserve accumulation from exchange-rate management," Landau said. "The need for national reserves could be reduced if credible mechanisms exist to provide for the supply of official liquidity on a multilateral basis."

That said, he freely admitted that this goal will be very hard to reach. Such an international agreement ultimately puts taxpayers in one country on the hook to bale out debtors in another, which would very hard to sell politically.

"It is hard to imagine that any government could bring the necessary fiscal backing to issuance of potentially unlimited liabilities to non-residents in times of crisis," Landau said.

As a result, the outlook for global capital markets is not encouraging, Landau said, warning of a "segmentation" between nations with surplus capital and others that will suffer from a dearth of investment due to a lack of access to capital.

"The most likely scenario is that of progressive fragmentation of the international financial system," he added.

(Reporting by Alister Bull. Editing by Andre Grenon)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Central banks told to cooperate on managing global liquidity

JACKSON HOLE, Wyoming | Sat Aug 24, 2013 3:02pm BST

JACKSON HOLE, Wyoming (Reuters) - Central banks should coordinate to avoid unwanted side effects as they exit from ultra-easy monetary policies that have left the world awash in cheap money, top policymakers were told on Saturday.

Opening the second day of an annual monetary symposium in Jackson Hole, Wyoming, after a week in which several top emerging markets suffered steep losses, a former Bank of France deputy governor painted a grave picture of the problem.

"The main challenge will be to manage the consequences of monetary policies, and their evolutions, on cross-border liquidity movements," Jean-Pierre Landau concluded in a paper he presented to an audience that included top central bankers from advanced as well as emerging market economies.

"Amplifications, feedback loops and sensitivity to risk perceptions will complicate the task of exit and necessitate very close and constant dialogue and cooperation between central banks," said Landau, now a professor at Princeton.

But he lamented that the necessary coordination on monetary policy was unlikely, and warned of the potential for the "fragmentation" of global capital markets.

Stocks and currencies plunged in India, Indonesia, Brazil and Turkey this week as investors fretted over a looming reduction in the U.S. Federal Reserve's monthly bond purchases.

Turkish Central Bank Governor Erdem Basci was attending the conference, although his Brazilian counterpart, Alexandre Tombini, cancelled to stay home and deal with the crisis.

The Fed's bond buying, or so-called quantitative easing, has been at the heart of its aggressive efforts to revive U.S. economic growth after it cut interest rates to nearly zero in 2008. Interest rates in Europe and Japan are also ultra-low.

However, the purchases have spurred massive capital inflows into faster growing emerging economies, which are now suffering as investors anticipate an end to the easy money.

COORDINATION

Landau acknowledged that central bankers dislike the idea of coordinating monetary policy because their job is to focus on domestic goals. But they worked well together during the 2007-2009 financial crisis, when the Fed, European Central Bank, Bank of Japan and other central banks coordinated rate cuts and currency swap lines.

As cross-border liquidity pressures build, they will find it productive to do so again, although cooperation is more likely through regulatory and financial structures aimed at preventing excessive leverage or harmful asset bubbles, he said.

In an ideal world, the cooperation would extend to monetary policy because policies in major economies such as the United States can have an international impact that amplifies their magnitude with domestic implications, Landau argued.

"The system itself is producing more accommodative monetary conditions than warranted by the situation," he said. "In a reverse environment, when monetary policies need tightening, the effects could be symmetrical and complicate the exit from non-conventional measures."

In addition, much could be gained through an international "lender of last resort," which would remove the motive for some nations to maintain massive foreign exchange reserves, he added.

"All countries have a common interest in finding ways to disconnect reserve accumulation from exchange-rate management," Landau said. "The need for national reserves could be reduced if credible mechanisms exist to provide for the supply of official liquidity on a multilateral basis."

That said, he freely admitted that this goal will be very hard to reach. Such an international agreement ultimately puts taxpayers in one country on the hook to bail debtors in another, which would very hard to sell politically.

"It is hard to imagine that any government could bring the necessary fiscal backing to issuance of potentially unlimited liabilities to non-residents in times of crisis," Landau said.

As a result, the outlook for global capital markets is not encouraging, Landau said, warning of a "segmentation" between nations with surplus capital and others that will suffer from a dearth of investment due to a lack of access to capital.

"The most likely scenario is that of progressive fragmentation of the international financial system," he added.

(Reporting by Alister Bull. Editing by Andre Grenon)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Global stocks gain; doubts arise on end to Fed purchases

1 of 6. Traders work on the floor at the New York Stock Exchange, July 8, 2013.

Credit: Reuters/Brendan McDermid

NEW YORK | Fri Aug 23, 2013 9:23pm BST

NEW YORK (Reuters) - Benchmark stock indexes around the world edged higher on Friday, while the dollar fell after a U.S. government report on new single-family home sales raised doubts about the timing and extent of cuts to the Federal Reserve's stimulus program.

New home sales dropped 13.4 percent in July to an annual rate of 394,000 units, well below expectations, the Commerce Department said, dimming what has been a bright spot in the U.S. economic comeback.

Europe's main stock markets were steady to higher but attention remained firmly on Asia after a torrid week that has wiped billions of dollars from emerging markets for the second time in two months.

Yields on U.S. Treasuries traded lower but still near two-year highs, with investors reluctant to break out of recent ranges, given uncertainty around when the Fed might slow its massive bond-buying program. The benchmark 10-year U.S. Treasury note was up 18/32, its yield at 2.818 percent.

"This has been a very unique market situation, with the Fed stimulus being such an important component to the market rally. This is uncharted waters for us," said Gordon Charlop, managing director at Rosenblatt Securities in New York. "So regardless of what the move is, the fact you are someplace you haven't been before is cause for uncertainty."

The next Fed monetary policy meeting is set for September 17-18.

The Dow Jones industrial average rose 46.77 points or 0.31 percent, to 15,010.51, the S&P 500 gained 6.54 points or 0.39 percent, to 1,663.50 and the Nasdaq Composite added 19.085 points or 0.52 percent, to 3,657.792.

The biggest risk facing the U.S. economy is a premature policy tightening by the Federal Reserve, Stanford University economist Robert Hall told the Kansas City Federal Reserve Bank's annual conference in Jackson Hole, Wyoming.

MSCI's emerging share index had its first gain after six sessions in the red, while selling of India's rupee subsided after the currency's worst week against the dollar in decades.

"Hopefully the worst (of the emerging market selling) may now be over," said Hans Peterson, global head of asset allocation at SEB investment management. He added that his firm may soon start "bottom fishing" in Asia.

"It doesn't seem to be a repeat of the 1997 (Asian crisis) situation ... and it seems like people are not so keen on being extremely short anymore, so it might twist around a bit."

The dollar surrendered gains against a basket of currencies after earlier climbing to a three-week peak versus the yen, helped by the rise in U.S. bond yields on expectations the Fed will reduce its asset-buying program next month.

YIELDS BUILD

This week's market turbulence has been driven by growing evidence that the Fed is ready to start closing the taps on its huge stimulus program, a conviction that is being bolstered by strengthening global data.

Germany confirmed on Friday that its economy grew at a 0.7 percent rate in the second quarter, while Britain revised upward its growth numbers.

Purchasing managers' surveys this week showed better-than-expected growth in the euro zone, a Chinese manufacturing rebound and U.S. manufacturing activity at a five-month high.

Europe's FTSEurofirst 300, rose 0.4 percent on Friday. A rebound in Asia and Europe helped push MSCI's global share index up 0.8 percent, although it was not enough to prevent it heading for its third weekly fall.

EMERGING MARKET OUTFLOWS

U.S. Treasury yields tend to set the benchmark for borrowing costs across the globe, so their recent rise - expected to continue as the Fed winds down support - is making it more difficult for indebted countries and firms to pay their bills.

Data from Boston-based fund tracker EPFR Global on Thursday showed $1.3 billion fled emerging debt funds in the week ending August 21, the biggest outflow since mid-July.

Whereas May and June's sharp selloff in emerging markets calmed when the change in direction of U.S. market rates made shorting (betting against) those assets unprofitable, this time that did not happen, meaning the selling could run for longer.

Brent and U.S. crude found early support from disruptions to Libyan exports. Brent crude traded up 1 percent to $111.01 a barrel, and U.S. crude rose 1.3 percent to $106.43 a barrel.

(Reporting by Nick Olivari, editing by Dan Grebler and Nick Zieminski)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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In U.S., China, Europe, data points to global rebound

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Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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Common goods and evils? : the formation of global crime governance / Anja P. Jakobi.

 Open Coll Level 1  364 JAKOBI    IN  --- Sorry, I could not read the content fromt this page.

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Global shares buckle, U.S. bond yields rise on Fed tapering bets

1 of 4. Workers speak above an electronic information board at the London Stock Exchange in the City of London January 2, 2013.

Credit: Reuters/Paul Hackett

By Wanfeng Zhou

NEW YORK | Fri Aug 16, 2013 11:06am EDT

NEW YORK (Reuters) - World share indexes edged higher on Friday but were headed for their biggest weekly fall in almost two months, while U.S. bond yields traded near two-year highs as investors worried the Federal Reserve will start scaling back stimulus next month.

The dollar rose against major currencies, buoyed by higher yields. It briefly weakened after data showed U.S. consumer sentiment weakened in August while housing starts and permits rose less than expected in July.

U.S. shares were little changed, after the largest decline on Wall Street in nearly two months a day earlier set major indexes on course for their first back-to-back weekly declines since late June. European shares eased from two-year highs set earlier this week.

Wall Street has come under pressure as corporate revenue growth has disappointed even as companies' bottom-lines have hit the mark. From Wal-Mart (WMT.N) and Gap (GPS.N) to Macy's (M.N) and McDonald's (MCD.N), chains that cater to middle- and lower-income Americans are feeling the pinch of an uneven economic recovery.

"We haven't seen the revenue growth the market was anticipating," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

"We are unlikely to see a large-scale correction in the market right now, but it certainly is losing the momentum that took it to strong highs earlier this year," he said.

MSCI's world equity index .MIWD00000PUS, which tracks shares in 45 countries, edged up 0.06 percent but was set for its biggest weekly drop since late June as talk of an early cutback in the Fed's $85 billion monthly cash injections resurfaced.

The Dow Jones industrial average .DJI was up 0.76 points on Friday, or 0.01 percent, at 15,112.95. The Standard & Poor's 500 Index .SPX was down 1.25 points, or 0.08 percent, at 1,660.07. The Nasdaq Composite Index .IXIC was up 7.31 points, or 0.20 percent, at 3,613.43.

Europe' broad FTSE Eurofirst 300 index .FTEU3 of top companies was little changed.

Emerging currencies though were struggling with India's rupee hitting a record lows beyond 62 per dollar, bringing its year-to-date losses to 11 percent. The Indonesian rupiah also tumbled to four-year troughs.

MSCI's broad emerging equities index .MSCIEF shed 0.3 percent.

U.S. Treasuries prices extended a rout that has sent longer-dated yields to their highest in two years. The bond market has undergone a sharp selloff since the Fed started talking about paring back its monthly $85 billion in bond purchases.

The benchmark 10-year yield has risen from about 1.6 percent at the start of May and was last down 7/32 with its yield at 2.7885 percent. Yields reached as high as 2.823 percent on Thursday, the highest since August 2011.

Treasuries have been roiled along with German, British and other government bonds as the U.S. and euro zone economies appear to have a more solid footing, increasing expectations that yields will continue their recent rise.

"Some of the likelihood of a September taper continues to strengthen and you've also seen a lot of stable news coming out of the European zone. That may provide that window of opportunity for the Fed to start in September," said Sean Murphy, a Treasuries trader at Societe Generale in New York.

A Reuters poll released on Wednesday showed a majority of economists expect the Fed to reduce bond purchases at its September 17-18 policy meeting, with a consensus expecting that the U.S. central bank would reduce purchases by $15 billion initially.

The dollar rose 0.2 percent to 97.53 yen, while the euro was little changed at $1.3345.

The brighter economic picture is being reflected in demand for industrial metals, with copper reaching a 10-week peak of $7,420 a tonne, while zinc has rallied to a five-month high of $1,990 a tonne.

Precious metals like gold and platinum have gained as well, though they could be threatened if the Fed did wind down its stimulus. Gold hit a two-month high of $1,373.09, with platinum and palladium also at two month highs.

Brent crude futures for October were up 42 cents at $110.02 a barrel. U.S. oil for September rose 42 cents to $107.75.

Concerns that violence in Egypt could affect the Suez Canal, a conduit for up to 3 million barrels per day of oil and a vital seaway for bulk carriers, helped drive Brent to a four-month high on Thursday.

(Additional reporting by Rodrigo Campos and Karen Brettell in New York and Richard Hubbard in London; Editing by Chris Reese)

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Global shares buckle, U.S. bond yields rise on Fed tapering bets

1 of 4. Workers speak above an electronic information board at the London Stock Exchange in the City of London January 2, 2013.

Credit: Reuters/Paul Hackett

By Wanfeng Zhou

NEW YORK | Fri Aug 16, 2013 11:06am EDT

NEW YORK (Reuters) - World share indexes edged higher on Friday but were headed for their biggest weekly fall in almost two months, while U.S. bond yields traded near two-year highs as investors worried the Federal Reserve will start scaling back stimulus next month.

The dollar rose against major currencies, buoyed by higher yields. It briefly weakened after data showed U.S. consumer sentiment weakened in August while housing starts and permits rose less than expected in July.

U.S. shares were little changed, after the largest decline on Wall Street in nearly two months a day earlier set major indexes on course for their first back-to-back weekly declines since late June. European shares eased from two-year highs set earlier this week.

Wall Street has come under pressure as corporate revenue growth has disappointed even as companies' bottom-lines have hit the mark. From Wal-Mart (WMT.N) and Gap (GPS.N) to Macy's (M.N) and McDonald's (MCD.N), chains that cater to middle- and lower-income Americans are feeling the pinch of an uneven economic recovery.

"We haven't seen the revenue growth the market was anticipating," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

"We are unlikely to see a large-scale correction in the market right now, but it certainly is losing the momentum that took it to strong highs earlier this year," he said.

MSCI's world equity index .MIWD00000PUS, which tracks shares in 45 countries, edged up 0.06 percent but was set for its biggest weekly drop since late June as talk of an early cutback in the Fed's $85 billion monthly cash injections resurfaced.

The Dow Jones industrial average .DJI was up 0.76 points on Friday, or 0.01 percent, at 15,112.95. The Standard & Poor's 500 Index .SPX was down 1.25 points, or 0.08 percent, at 1,660.07. The Nasdaq Composite Index .IXIC was up 7.31 points, or 0.20 percent, at 3,613.43.

Europe' broad FTSE Eurofirst 300 index .FTEU3 of top companies was little changed.

Emerging currencies though were struggling with India's rupee hitting a record lows beyond 62 per dollar, bringing its year-to-date losses to 11 percent. The Indonesian rupiah also tumbled to four-year troughs.

MSCI's broad emerging equities index .MSCIEF shed 0.3 percent.

U.S. Treasuries prices extended a rout that has sent longer-dated yields to their highest in two years. The bond market has undergone a sharp selloff since the Fed started talking about paring back its monthly $85 billion in bond purchases.

The benchmark 10-year yield has risen from about 1.6 percent at the start of May and was last down 7/32 with its yield at 2.7885 percent. Yields reached as high as 2.823 percent on Thursday, the highest since August 2011.

Treasuries have been roiled along with German, British and other government bonds as the U.S. and euro zone economies appear to have a more solid footing, increasing expectations that yields will continue their recent rise.

"Some of the likelihood of a September taper continues to strengthen and you've also seen a lot of stable news coming out of the European zone. That may provide that window of opportunity for the Fed to start in September," said Sean Murphy, a Treasuries trader at Societe Generale in New York.

A Reuters poll released on Wednesday showed a majority of economists expect the Fed to reduce bond purchases at its September 17-18 policy meeting, with a consensus expecting that the U.S. central bank would reduce purchases by $15 billion initially.

The dollar rose 0.2 percent to 97.53 yen, while the euro was little changed at $1.3345.

The brighter economic picture is being reflected in demand for industrial metals, with copper reaching a 10-week peak of $7,420 a tonne, while zinc has rallied to a five-month high of $1,990 a tonne.

Precious metals like gold and platinum have gained as well, though they could be threatened if the Fed did wind down its stimulus. Gold hit a two-month high of $1,373.09, with platinum and palladium also at two month highs.

Brent crude futures for October were up 42 cents at $110.02 a barrel. U.S. oil for September rose 42 cents to $107.75.

Concerns that violence in Egypt could affect the Suez Canal, a conduit for up to 3 million barrels per day of oil and a vital seaway for bulk carriers, helped drive Brent to a four-month high on Thursday.

(Additional reporting by Rodrigo Campos and Karen Brettell in New York and Richard Hubbard in London; Editing by Chris Reese)

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