LONDON, 13 October 2006 — The dollar resisted heavy downward pressure here yesterday despite news of a record US trade deficit, with the US currency continuing to benefit from interest rate differentials.
The single European currency in late-day trade was at 1.2538 dollars after 1.2517 late Wednesday in New York. The dollar was meanwhile trading at 119.53 yen against 119.74 on Wednesday.
The euro was changing hands at 1.2538 dollars against 1.2517 dollars on Wednesday, 149.83 yen (149.88), 0.6756 pounds (0.6751) and 1.5929 Swiss francs (1.5930). The dollar stood at 119.53 yen (119.74) and 1.2704 Swiss francs (1.2723).
On the London Bullion Market, gold prices slipped to $573 per ounce from $574.10 late on Wednesday.
Meanwhile, European stock markets advanced yesterday, with falling oil prices helping lift the London and Paris exchanges toward five-year highs, dealers said. The London FTSE 100 index of leading shares gained 0.79 percent to close at 6,121.30 points. In Paris the CAC 40 rose 0.91 percent to 5,361.51 while the Frankfurt DAX added 0.67 percent to finish at 6,160.28. The DJ Euro Stoxx 50 index of leading euro zone shares closed up 0.82 percent at 3,999.89.
Elsewhere in Europe, the Amsterdam AEX index rose 0.58 percent to 492.84 points, the Swiss SMI gained 0.41 percent to hit a record 8,673.73, in Milan the SP Mib was up by 0.29 percent at 39,604, in Madrid the Ibex-35 gained 1.10 percent to reach a record 13,406.9, and in Brussels the Bel-20 also hit a record 4,181.74 after a rise of 1.27 percent.
Asian stocks closed mixed yesterday. In Tokyo, the Nikkei-225 index lost 31.76 points or 0.19 percent to 16,368.81. In Seoul, the KOSPI index closed up 6.29 points at 1,331.78. In Hong Kong, the Hang Seng Index closed up 10.3 points at 17,873.09. In Sydney, the SP ASX 200 ended down 23.0 points at 5,259.8.
In Singapore, the Straits Times Index fell 0.97 points to 2,640.64. In Kuala Lumpur, the composite index gained 5.25 points at 975.62. In Manila, the composite index gained 7.13 points to 2,534.40. In Bombay, the benchmark 30-share Sensex index rose 184.49 points to 12,537.98.
Meanwhile, oil prices edged higher yesterday, recovering from a slide to their lowest level this year after US government data showed a fall in stocks of winter heating fuel. But a big rise in overall crude stocks and OPEC indecision over an output cut limited gains.
US crude was trading at $57.78 a barrel, 19 cents higher, by 1740 GMT, above a session low of $57.22, which was the lowest level since Dec. 19, 2005. London Brent crude was down five cents at $58.60.
US government data yesterday showed crude stocks had risen by 2.4 million barrels, compared with a forecast for an 800,000-barrel increase.
Distillate stocks fell by 1.6 million barrels, compared with expectations for a 100,000-barrel rise. But distillate stocks, including heating oil, are still 22.7 million barrels, or around 18 percent, higher than a year ago. “This is still a report indicating a well-supplied market,” said Jason Schenker, analyst at Wachovia Bank. “We look well-supplied and I would not anticipate any shortages. We would need a very cold winter to see prices spike.”
