NEW YORK: The euro fell to a five-week low on Thursday, Nov 11 on concerns about Ireland's ability to repay its debt while earnings fears knocked U.S. stocks lower after a TECHNOLOGY [] bellwether Cisco Systems gave a dismal outlook.
Gold prices rose on escalating concerns about debt in some euro zone economies, overcoming a stronger U.S. dollar which makes the metal more expensive to trade. Oil prices were unchanged, with news of strong Chinese demand offset by the rise of the greenback.
Equities in Tokyo were poised on Friday to mirror weak U.S. trade. The December futures contract for the Nikkei 225 stock index trading in Chicago fell 30 points to 9840.
Yields on 10-year Irish bonds rose to a record high over comparable German debt as investors speculated Ireland will soon need financial help to service its debt.
Ireland's Finance Minister Brian Lenihan admitted the surge in borrowing costs had become "very serious," but European officials denied for a second day that Dublin was seeking financial aid -- echoing the denials heard six months ago when Greece needed an EU/IMF bailout.
"The market has gone back to focusing on Europe rather than the U.S., where rates are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It has become a game of 'Which currency do you dislike the most?' and right now that currency is the euro."
The euro fell as low as $1.3637, a five-week nadir, and was last down 0.9 percent at $1.3655. It also posted losses against the yen and hit a seven-week low against sterling.
The dollar strengthened against major currencies, with the U.S. Dollar Index up 0.64 percent. Also supporting the greenback was a U.S. think tank report saying the Federal Reserve may scale back its latest plan to buy government bonds.
Against the Japanese yen, the dollar was up 0.3 percent at 82.51 yen.
Europe's woes diverted attention from a G20 summit in South Korea, where major rich and developing countries tried to hammer out an agreement to reduce global economic imbalances and avoid competitive currency devaluations.
TECH WEIGHS ON WALL ST
Technology shares led a slide on Wall Street after a disappointing outlook from Cisco Systems Inc, the world's top manufacturer of computer routers and switches.
The Dow Jones industrial average fell 73.94 points, or 0.65 percent, to 11,283.10. The Standard & Poor's 500 Index lost 5.17 points, or 0.42 percent, at 1,213.54. The Nasdaq Composite Index dropped 23.26 points, or 0.90 percent, to 2,555.52.
Cisco's shares fell more than 16 percent to close at $20.52 after Chief Executive John Chambers cautioned about short-term challenges in Europe and purchases by public-sector customers.
European stocks ended little changed, with investors uneasy about the situation in Ireland. The FTSEurofirst 300 index of top European shares lost 0.07 percent after falling 0.7 percent on Wednesday. The index is up 71 percent since a record low in March 2009 but only 6 percent higher in 2010.
"It's time to book profits, that's what we're doing. The market is ripe for a correction," said Jean-Yves Dumont, head of asset allocation strategy and funds at Dexia Asset Management, which turned "underweight" on equities on Wednesday.
U.S. gold futures for December delivery settled up $4 at $1,403.30 an ounce, however spot prices fell 65 cents, or 0.05 percent, to $1408.20.
Trade was volatile as the strength of the greenback took off some of its shine.
"Gold is resuming its role as a safe haven in times of crisis as the situations in Ireland and some European countries are getting worse. So, it has also been separating itself from the euro lately because of the safe-haven play," said Donald Selkin, chief market strategist at National Securities Corp.
U.S. crude oil prices settled unchanged at $87.81 a barrel.
The U.S. bond market was closed for Veterans Day. - Reuters
Gold prices rose on escalating concerns about debt in some euro zone economies, overcoming a stronger U.S. dollar which makes the metal more expensive to trade. Oil prices were unchanged, with news of strong Chinese demand offset by the rise of the greenback.
Equities in Tokyo were poised on Friday to mirror weak U.S. trade. The December futures contract for the Nikkei 225 stock index trading in Chicago fell 30 points to 9840.
Yields on 10-year Irish bonds rose to a record high over comparable German debt as investors speculated Ireland will soon need financial help to service its debt.
Ireland's Finance Minister Brian Lenihan admitted the surge in borrowing costs had become "very serious," but European officials denied for a second day that Dublin was seeking financial aid -- echoing the denials heard six months ago when Greece needed an EU/IMF bailout.
"The market has gone back to focusing on Europe rather than the U.S., where rates are currently very low," said Greg Anderson, G10 FX strategist at Citigroup in New York. "It has become a game of 'Which currency do you dislike the most?' and right now that currency is the euro."
The euro fell as low as $1.3637, a five-week nadir, and was last down 0.9 percent at $1.3655. It also posted losses against the yen and hit a seven-week low against sterling.
The dollar strengthened against major currencies, with the U.S. Dollar Index up 0.64 percent. Also supporting the greenback was a U.S. think tank report saying the Federal Reserve may scale back its latest plan to buy government bonds.
Against the Japanese yen, the dollar was up 0.3 percent at 82.51 yen.
Europe's woes diverted attention from a G20 summit in South Korea, where major rich and developing countries tried to hammer out an agreement to reduce global economic imbalances and avoid competitive currency devaluations.
TECH WEIGHS ON WALL ST
Technology shares led a slide on Wall Street after a disappointing outlook from Cisco Systems Inc, the world's top manufacturer of computer routers and switches.
The Dow Jones industrial average fell 73.94 points, or 0.65 percent, to 11,283.10. The Standard & Poor's 500 Index lost 5.17 points, or 0.42 percent, at 1,213.54. The Nasdaq Composite Index dropped 23.26 points, or 0.90 percent, to 2,555.52.
Cisco's shares fell more than 16 percent to close at $20.52 after Chief Executive John Chambers cautioned about short-term challenges in Europe and purchases by public-sector customers.
European stocks ended little changed, with investors uneasy about the situation in Ireland. The FTSEurofirst 300 index of top European shares lost 0.07 percent after falling 0.7 percent on Wednesday. The index is up 71 percent since a record low in March 2009 but only 6 percent higher in 2010.
"It's time to book profits, that's what we're doing. The market is ripe for a correction," said Jean-Yves Dumont, head of asset allocation strategy and funds at Dexia Asset Management, which turned "underweight" on equities on Wednesday.
U.S. gold futures for December delivery settled up $4 at $1,403.30 an ounce, however spot prices fell 65 cents, or 0.05 percent, to $1408.20.
Trade was volatile as the strength of the greenback took off some of its shine.
"Gold is resuming its role as a safe haven in times of crisis as the situations in Ireland and some European countries are getting worse. So, it has also been separating itself from the euro lately because of the safe-haven play," said Donald Selkin, chief market strategist at National Securities Corp.
U.S. crude oil prices settled unchanged at $87.81 a barrel.
The U.S. bond market was closed for Veterans Day. - Reuters
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