U.S. crude pricesraced above $71 a barrel, extending a 2 percent gain the day before, after rebel attacks on Nigerian oil facilities disrupted supply. Firmer oil prices supported metal prices, with gold edging above $940 to a one-week high.

Global equities were also in demand, with the MSCI world equity index advancing 0.9 percent and the pan-European FTSEurofirst 300 up 0.2 percent.

The MSCI world equity index is up more than 21 percent this quarter, on track for the biggest quarterly gain in its 20-year history.

“It is clear that the rebound in global equity markets has lost some steam,” Barclays Wealth said in a note.

“It appears to us that stocks are now broadly fairly valued, having erased their previous undervaluation faster than expected. Further share price gains may well relate more closely to the rate of underlying profit growth and the economic cycle.”

U.S. stock index futures were down between 0.2 and 0.3 percent, indicating a softer open on Wall Street.

Tokyo’s Nikkei average added 0.8 percent, shrugging off a record 1.1 percent fall in consumer prices in the year to May — another sign falling demand is pushing the economy deep into its second spell of deflation this decade.

“Most people will agree now that we won’t revisit the low point that we have seen this year any time soon,” said Luc Van Hecka, chief economist at KBC Securities.

“But there are still some problems to be resolved in the financial sector and as long as that is not out of the way in a convincing manner, we could still have intermediate corrections.”

UBS , the world’s largest wealth manager, said it planned to raise about 3.8 billion Swiss francs ($3.46 billion) by selling stock and expected to post a second-quarter net loss. The likelihood of a long road to global economic recovery remained a challenge to companies. Boeing Co , the world’s No. 2 plane-maker, suffered another heavy blow to its Dreamliner project when a major customer, Australia’s Qantas Airways , scrapped and deferred orders for 30 new planes.

DOLLAR SLIPS

The dollar fell against a basket of currencies, extending losses made the previous day after the U.S. Federal Reserve gave no hint of an imminent exit from low interest rates and other bold measures to stoke growth.

The euro was up 0.6 percent against the dollar at $1.4085, while the greenback fell 0.5 percent to the yen.

“Risk sentiment is back in full force,” said Christian Lawrence, currency strategist at RBC Capital Markets. “The dollar is being sold across the board.”

Yields on the benchmark 10-year U.S. Treasury added 2 basis points, while the 10-year euro zone benchmarkbund yield was unchanged at 3.428 percent.

In one measure of how investor sentiment has improved, the CBOE Volatility Index, a gauge of investor anxiety, on Thursday closed at its lowest level since just before Lehman Brothers filed for bankruptcy protection last September.

LONDON, June 26 (Reuters)

Gold was at $919/921 an ounce at 1242 GMT, down from $937.15 late in New York on Monday, when it fell more than 1 percent as investors moved away from safe-haven investments.

World stocks hit five-week highs on Monday as investors pocketed riskier assets on growing optimism that a U.S. plan to purge toxic assets from the balance sheet of banks could ease the misery of the financial sector.

“Sentiment (on gold) is a bit weaker off a perceived improvement in other forms of asset classes,” said Michael Khosrowpour, an analyst at Triland Metals, pointing to overnight gains in stock markets and gains in the dollar.

The U.S. plan helped boost Japan’s Nikkei average to a 2-1/2 month closing high on Tuesday. But European stocks dipped, breaking a three-day winning streak after euro zone and UK macro data showed job losses and higher inflation.

Traders said markets were watching out for testimony before Congress by Fed Chairman Ben Bernanke and U.S. Treasury Secretary Geithner at 1400 GMT.

Analysts said fears of inflation fanned by the Federal Reserve’s plans to buy long-dated U.S. Treasuries still lingered even if they had eased a little.

“Gold will probably continue to follow inflation expectations in the near term although remains vulnerable to improved risk asset sentiment,” UBS said in a note.

Analysts also said a higher dollar was putting pressure on gold prices.

Gold is often viewed as an alternative to holding the dollar, and often falls when the dollar rises because it makes metals priced in the U.S. currency more expensive for holders of other currencies.

Bullion has recovered ground from a six-week low of $882.90 marked on March 18 but still has some way to go before approaching the 11-month high above $1,000 reached in February.

It soared to an all-time peak of $1,030.80 in March 2008.

Receding interest in gold was also evident in the holdings of gold-backed exchange traded funds.

The world’s largest gold-backed ETF, the SPDR Gold Trust , said its holdings nudged down about a third of a tonne to 1,114.29 tonnes on March 23 from a record high 1,114.60 tonnes.

Silver was at $13.36/13.42 from $13.63, platinum was at $1,109/1,119 from $1,121, and palladium was at $203/208 versus $207.5.

March 24 (Reuters)

Reassurances over the health of the U.S. banking industry have sparked something of a recovery in investors’ appetite for risk and Wall Street looked set to join Asia and Europe with strong gains at the open.

Executives from Citigroup , Bank of America and JPMorgan Chase said last week their banks had been profitable for the first two months of the year.

Federal Reserve Chairman Ben Bernanke also said on Sunday that he sees the U.S. economic decline moderating and recovery beginning in 2010, though he said risks remain that politicians will lack the will to do everything needed to fix the fractured financial system.

Global stocks as measured by MSCI rose more than 1.3 percent, bringing gains to more than 11.5 percent since hitting a low a week ago.

“The eternal battle between the bulls and the bears will intensify this week,” said Chris Hossain, senior sales manager at ODL Securities.

“Whilst it is hard to say if we have seen the worst, we certainly haven’t seen a week like last week in a long time.”

European shares also rose for a fifth straight session, led higher by financial stocks.

The pan-European FTSEurofirst 300 and 14 percent this year after plunging 45 percent in 2008.

Earlier, Japan’s Nikkei average gained 1.8 percent to post its highest close in a month, with banks such as Mitsubishi UFJ Financial Group  jumping amid the easing fears about the health of U.S. lenders.

The benchmark rose 134.87 points to 7,704.15, its highest finish since Feb. 16. The broader Topix  climbed 2.4 percent to 741.69.

BONDS FOR SALE

The equity charge undermined demand for government bonds with June Bond futures down 73 ticks, two-year Schatz yields rising 5 basis points to 1.381 percent, and 10-year Bond yielding 3.127 percent, up 8 basis points.

“At least risk aversion is decreasing and there was no disappointment on the back of the G20,” said Patrick Jacq, interest rate strategist at BNP Paribas in Paris.

“Clearly, as financial stocks still remain the driving force, this is helping stock markets to rebound further.”

Over the weekend, finance ministers and central bankers from Group of 20 countries pledged to use their full fiscal and monetary firepower to combat the economic crisis, but the decisions taken focused more on funds for the IMF and regulating hedge funds.

The dollar fell broadly, reversing earlier gains made in the Asian session, as stock markets rallied.

The currency market was also looking ahead to policy meetings by the Federal Reserve and the Bank of Japan later in the week.

The dollar fell 0.65 percent against a basket of currencies to 86.687, while the euro rose 0.8 percent from U.S. trade on Friday to $1.3022 .

The U.S. currency, however, gained 0.49 percent to 98.43 yen .

March 16 (Reuters)

Government debt prices fell as U.S Treasuries retreated on the prospect of $63 billion in new supply this week and shorter-dated euro zone bonds slipped ahead of 8 billion euros worth of two-year paper from Germany on Wednesday.

Crude oil rose above $47 a barrel at one point after renewed buying on speculation the Organization of Petroleum Exporting Countries may cut production again at its meeting on Sunday in Vienna.

Equity markets in Europe and the United States were choppy as higher energy prices pulled up oil shares while U.S. bank shares rose on optimism that Washington will provide more clarity on government plans to shore up the U.S. banking system.

U.S. Federal Reserve Chairman Ben Bernanke was attending a meeting on the economy with President Barack Obama, the White House said.

But in Europe, financials took the most points off the FTSEurofirst 300 index of top European shares as investors continued to flee the financial sector following news of further government stake-building, fanning worries about the stability of Britain’s banks.

Growing fears about the ailing U.S. automakers and banking drove interbank U.S. dollar borrowing costs up.

In Asia, Japan’s Nikkei average closed at a 26-year low, finishing down 1.2 percent, and other Asian markets slipped on worries about the fate of General Motors and U.S. banks.

“The dollar seems to be the only safe haven left right now, with both the yen and Swiss franc under pressure,” said Robert Blake, senior currency strategist at State Street in Boston.

“We’re certainly in risk aversion mode and the trade right now is to buy dollars, which to a large extent reflects huge repatriation flows to the United States.”

Currencies have tracked equity markets’ performance over the last few weeks, with the dollar tending to benefit when stocks fall as investors seek shelter amid fears of a collapse of banking systems worldwide.

The dollar was up against a basket of major trading-partner currencies, with the U.S. Dollar Index up 0.53 percent.

The euro fell 0.12 percent at $1.2625, while against the yen, the dollar rose 0.50 percent at 98.86.

With the outlook so dim, Barclays cut its year-end target for the S&P 500 to 760, saying the probability of the benchmark U.S. stock index hitting an initial 875 was much lower now.

After 1 p.m., the Dow Jones industrial average was down 62.76 points, or 0.95 percent, at 6,564.18. The Standard & Poor’s 500 Index was down 4.35 points, or 0.64 percent, at 679.03. The Nasdaq Composite Index was down 18.56 points, or 1.43 percent, at 1,275.29.

The biggest drag on the Dow was Merck & Co Inc after its proposed $41 billion takeover of Schering-Plough raised concerns about the depth and breadth of the recession as it hurts such defensive sectors as drugmakers, analysts said.

“This deal was done in a declining environment for both companies,” said Arthur Hogan, chief market analyst at Jefferies & Co in Boston.

The FTSEurofirst 300 index of top European shares closed down 0.7 percent at 657.30 points.

The benchmark 10-year U.S. Treasury note fell 6/32 in price to yield 2.90 percent. The 2-year U.S. Treasury note fell 3/32 in price to yield 0.99 percent.

U.S. light sweet crude oil rose 94 cents to $46.46 a barrel.

OPEC Secretary-General Abdullah al-Badri said the 12-member producer group would consider reducing output again at its meeting on Sunday as it tries to counter downward pressure on oil prices from falling demand.

“All options are on the table,” he told reporters in Qatar when asked if OPEC, which pumps more than one-third of the world’s oil, would announce another reduction in supply at its meeting in Vienna.

Spot gold prices fell $18.90 to $917.65 an ounce.

March 9 (Reuters)

Investors spooked by volatility in other assets such as currencies and equities are buying the metal as a safe store of value, analysts said.

Spot gold climbed to $938.80/939.80 an ounce at 1014 GMT from $932.00 late in New York on Thursday. Earlier it touched a high of $941.90.

“Gold is considered in the first instance at the moment an insurance premium and a safe haven,” said Commerzbank analyst Eugen Weinberg. “It is the equity markets and risk aversion that are moving the market.”

The precious metal rose on Thursday as U.S. stocks tumbled to 12-year lows after General Motors said it was facing potential bankruptcy, and extended its gains as stocks slid in Asia.

World stocks struck a six-year low as Japan’s Nikkei average fell 3 percent in early trade. European shares opened a touch higher, but sentiment remains cautious.

Traders are awaiting key U.S. non-farm payrolls data due for release at 1330 GMT for clues as to the next direction of the markets. “Disappointing data could mean more pressure for U.S. equity markets,” said Standard Bank analyst Manqoba Madinane.

Economists expect the payrolls report will show the United States shed 648,000 jobs in February, compared to 598,000 in January. The unemployment rate is expected to have risen to 7.9 percent from 7.6 percent.

The dollar tumbled more than 1 percent against a basket of currencies, reversing recent gains, as investors braced for the data. Talk that the economy could have lost up to 1 million jobs had hit the U.S. currency hard, traders said.

SCEPTICAL

But analysts remain sceptical about gold’s ability to extend its gains. Commerzbank’s Weinberg said gold’s weak underlying fundamentals, with jewellery demand falling sharply and scrap supply picking up, pointed to a much lower price.

Demand for gold in India, the world’s largest market for the precious metal, remained slack as prices rose for a second day on Friday, while selling of scrap stepped up as gold holders cashed in after the recent price gains.

“There are no hopes of traders buying,” said Haresh Acharya, head of the bullion desk at Parker Agrochem Exports in Ahmedabad. “Sellers are coming in in huge numbers.”

Buying of gold-backed exchange traded funds was also stagnant, with holdings of New York’s SPDR Gold Trust , static for a fifth consecutive session.

Among other precious metals, spot silver tracked gold higher to $13.42/13.49 an ounce from $13.22. Earlier it touched a one-week high of $13.49.

Holdings of the world’s largest silver ETF, the iShares Silver Trust , declined by 82.8 tonnes on Thursday, and are down 282.1 tonnes or 3 percent from the record level they held last Thursday.

Spot platinum firmed to $1,070/1,080 an ounce from $1,058.50. Prices ticked higher on Thursday despite the announcement from General Motors and a spate of other price-negative data.

“That platinum remained comfortably above $1,000 an ounce despite ostensibly bearish news leads us to believe that the market is building a base from which to trade higher,” said HSBC analyst James Steel.

Spot palladium rose to $200/205 an ounce from $196, having earlier reached a 10-day high of $201.

March 6 (Reuters)

A weaker oil price reflecting poor economic demand ahead shut off a rally in world stocks on Friday while government bond yields sank.

Wall Street looked set for a poor start and the dollar recovered from early losses.

Oil fell below $54 a barrel, on course to end the month down more than 20 percent, as OPEC ministers prepared to meet in Cairo to discuss potential further supply cuts to combat a global fall in demand .

Indian stocks were higher as a siege in Mumbai between police and Islamist gunmen continued, but India’s 10 year bond yield fell to its lowest level in three years on expectations that the attacks will an impetus to rate cuts.

Globally, the MSCI all-country world index was flat, although it had gained around 11.6 percent, the first weekly gain in four weeks.

“On a range of measures, there is undoubted value to be found in many of the world’s equity markets,” said Sarah Arkle, chief investment officer with Threadneedle Asset Management.

But economic woes held back an earlier rally.

The pan-European FTSEurofirst 300 was down 0.3 percent, led lower by oil-related companies.

Earlier, Japan’s Nikkei average climbed 1.7 percent for its best week in a month. It gained 138.88 points to 8,512.27, while the broader Topix was up 0.7 percent to 834.82.

A monthly Reuters survey found that Japanese retail investors became slightly less pessimistic about domestic equities in November, fitting with other signs globally that recent market sell offs may be bottoming at least temporarily.

OPEC TO MEET

Oil fell below $53 a barrel for a while before recovering slightly. The Organization of the Petroleum Exporting Countries is to hold an informal meeting on Saturday in Cairo, as it struggles to slice output fast enough to keep pace with a recessionary reduction in fuel demand in the West that has sent crude prices down nearly two-thirds since July.

U.S. light crude for January delivery stood at $53.32 a barrel, down $1.12.

The dollar regained traction against major currencies after early losses.

It was 0.2 percent higher against a basket of six major currencies, while the euro lost 0.4 percent to $1.2838 . The dollar lost 0.1 percent to 95.22 yen .

Euro zone government bonds rose, reflecting concern about the economy and expectations of interest rate cuts. Two-year Schatz yields sank 10 basis points to 2.213 percent.

By Jeremy Gaunt, European Investment Correspondent
LONDON, Nov 28 (Reuters)