Gold ticks up in quiet trade, as Wall Street surges to fresh record-high

Commodities

Gold inched up on Monday in quiet, range-bound trade, as U.S. equities surged to fresh record-highs amid a continued rally in crude futures, while the dollar remained relatively weak due to the prospect of further easing from top central banks worldwide.

On the Comex division of the New York Mercantile Exchange, Gold for December delivery traded between $1,341.00 and $1,349.05 an ounce before settling at $1,347.75, up 4.55 or 0.34% on the session. Since surging to fresh 28-month highs in early-July, Gold has fallen back approximately $30 an ounce in broad risk-on trade as government bond yields throughout the world linger near all-time record lows. Still, the precious metal has soared more than 25% over the first seven months of 2016 and is on pace for one of its strongest years in the last three decades.

Investors on Monday continued to monitor global central bank activity closely ahead of next week's Jackson Hole Summit for leading central bankers in Wyoming. On Monday, the Nikkei fell 0.3% amid subdued economic growth in Japan over the three-month period through June, exacerbating concerns that further stimulus plans could be forthcoming before the end of the year. Over the quarter, Japan's economy grew at a rate of 0.2% over the prior 12 months, sharply below forecasts of a 0.7% increase and marking a considerable slowdown from gains of 2% over the first three months of the year. The subdued report comes in the wake of the launch of a ¥28 trillion stimulus plan aimed at staving off deflation.

In addition, stock markets in China soared roughly 3% to a seven-month high, as investors prepared for fresh stimulus measures in the world's second-largest economy following the release of weak economic data on Monday. Last month, new bank loans in China rose to 463.6 billion yuan, the data showed, approximately half the level anticipated by economists in a Bloomberg survey. The weak reading triggered for fresh concerns of the need for loose monetary policies by the People's Bank of China to jumpstart an economy mired in the slowest period of economic growth in two decades.

China is the world's largest producer of gold and the second-largest consumer of the precious metal behind India.

As leading central banks worldwide continue to employ unconventional negative interest rate policies in an effort to boost economic growth, the Federal Reserve weighs the timing of its next interest rate hike. When the Federal Open Market Committee (FOMC) approved a 25 basis point rate hike last December, the U.S. central bank estimated that it could raise rates as much as four times this year at the start of its first tightening cycle in nearly a decade. The FOMC, though, has left rates steady at each of its five meetings this year amid mixed employment data and below target inflation.

Any rate hikes by the Fed in 2016 are viewed as bearish for Gold, which struggles to compete with high yield bearing assets in rising rate environments.

Meanwhile, all three major indices on Wall Street hit fresh record-highs early in Monday's session, as oil futures hit 3-week highs. U.S. stocks have remained in record territory throughout the summer after staging an unexpected rebound during the early stages of the Post-Brexit crisis.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell by more than 0.15% to an intraday low of 95.43. Since hitting a four-month high at 97.62 in late-July, the Dollar has retreated by approximately 2%.

Dollar-denominated commodities such as Gold become more expensive for foreign purchasers when the dollar appreciates.

Silver for September delivery gained 0.159 or 0.81% to 19.862 an ounce.

Copper for September delivery rose by 0.012 or 0.56% to 2.151 a pound.

Source by Investing.com

AIG nearing deal to sell unit to Arch Capital for $3.4 billion: WSJ

Business

American International Group Inc (N:AIG) is nearing a deal to sell its mortgage-guaranty unit to Arch Capital Group Ltd (O:ACGL) for about $3.4 billion, the Wall Street Journal reported on Monday, citing people familiar with the matter.

The companies could strike a deal as soon as early this week, the Journal reported, although it added that the talks could still fall apart. 

AIG declined to comment, while Arch Capital was not immediately available for comment.

AIG said in January it would spin off its mortgage insurance unit, cut jobs and sell its broker-dealer network as part of a sweeping overhaul promised to shareholders to fend off activist investor Carl Icahn.

Icahn, whose representative secured a board seat at AIG earlier this year, has been pushing the insurer to split itself into three smaller companies as a way for the company to shed its designation as a Systemically Important Financial Institution (SIFI), which would free the company from having to comply with stricter capital requirements.

Shares of AIG and Arch Capital were up marginally in afternoon trading.

Source by Reuters

Are you saving too much for your kids' college?

Economy

Parents these days are expected to pull off a financial Mission: Impossible. Cover the monthly bills, pay down debts, help elderly parents, save for retirement and for kids' college costs, all with incomes that may have been flat for years.

Facing such a demanding feat, here's some advice you may not often hear: When it comes to your kids' college costs, maybe you are doing too much.

To wit, 42 percent of parents are actually losing sleep over college costs, up from 28 percent just two years ago, according to new data from the Parents, Kids & Money survey by Baltimore-based money managers T. Rowe Price.

Of parents surveyed, 57 percent are willing to take on at least $25,000 of college debt on behalf of their kids, and 19 percent are willing to borrow $100,000 or more.

More parents (58 percent) report having college-savings accounts for their kids, rather than retirement savings for themselves (54 percent).

"Parents are more stressed than ever about college costs, they feel guilty about not being able to help more, and many are willing to take on huge debts," says Marty Allenbaugh, a senior marketer for T. Rowe Price.

Their motivation comes from a positive place, of wanting their children to emerge from college debt-free.

But remember that college saving for little Johnny or Janie should not be your top financial priority, or even your second or third. That does not make you a bad parent; it just makes you realistic.

"Like they say in the safety briefing on an airplane, put your own oxygen mask on before assisting others," says Stephanie Genkin, a financial planner from Brooklyn, New York. "That might sound harsh to parents, but it is advice that may save you from a severely underfunded retirement."

Since many parents seem to have their financial priorities backwards, here are a few tips to help turn things around:

FORGET PAYING IT ALL OFF

It is a lovely idea to want your kids to graduate totally debt-free. But realistically, that goal is far out of reach for most families, with just 12 percent on track to pull it off, according to T. Rowe Price.

And it's no wonder. The annual tab for a four-year private college is $32,410, according to The College Board.

Instead of aiming to cover the full freight of tuition and fees, set the bar lower and help with some costs, not all.

MODERATE EXPECTATIONS

The sleepless nights some parents experience may partly be due to their offspring's expectations. An eye-popping 62 percent of kids are counting on their parents to cover every college bill, perhaps because they have not been warned otherwise.

A better tactic: Arrange money conversations early and often. Discuss with your children how they can help with the college costs, including through part-time work, applying for grants and scholarships, and low-interest loans.

RESHUFFLE PRIORITIES

College savings should be far down on your to-do list, according to T. Rowe Price. Saving for retirement, by contrast, should be the top priority. Ideally you should be socking away 15 percent of income, or at the very least, boost the level of your employer's 401(k) match.

Next comes paying off debts like credit cards, the most high-interest ones first. In addition, build an emergency fund to last you at least 3-6 months' worth of living expenses. After all that, you can finally think about college savings.

Saving $300 a month from birth is a useful target to aim for, says Allenbaugh, although even $70 a month for 18 years, assuming a 6 percent rate of return, will still amount to a healthy $25,000 by the time university rolls around.

That will put a major dent in the cost of a four-year public college education for in-state students, which currently comes to $9,410 a year.

RETAIN FLEXIBILITY

Students entering college enjoy some flexibility when it comes to funding their education, including scholarships, grants, loans, work-study programs, and gifts from family members like doting grandparents. They also have a long stretch of life ahead of them, to deal with bills that accrue.

However, if you are a parent who has spent all your money getting your kids through college, your avenues for retirement funding have narrowed precipitously.

Financial planner Scot Stark of Freeland, Maryland, knows one generous couple, ages 69 and 71, who helped get their four kids through college.

They are now staring retirement in the face with a $380,000 outstanding mortgage and only $180,000 in investments.

"You might have to support yourself for 30 years in retirement," says Genkin. "If that's not a case for putting your own retirement ahead of college planning, I don't know what is."

Source by Reuters

UPS CEO sees 'sense of urgency' over TPP as China seeks own deal

Business

The head of United Parcel Service Inc (N:UPS) said on Monday the United States runs the risk of missing out on setting the terms for international trade by not approving the Trans-Pacific Partnership (TPP) and said the company is lobbying members of Congress to approve the deal.

"We think there's a sense of urgency there," UPS Chief Executive Officer David Abney told Reuters.

He pointed to China's negotiations with 15 other countries on an alternative trade deal called the Regional Comprehensive Economic Partnership (RCEP).

"If that goes through, that would be China setting the rules for trade in that part of the world," Abney said in a telephone interview.

UPS is lobbying members of Congress during the summer recess to get TPP approved this year, most likely in the lame duck session after the U.S. presidential election on Nov. 8.

"We believe that sometime this year would be the best chance to get this approved," Abney said. "I'm not going to say it's the only chance, but we think it’s the best chance."

He said lobbying efforts by UPS executives and other business leaders are focused on members of Congress who have not supported the deal.

"Those are the ones we are concentrating on to see ... if we can bring forth a little more support than we have today," he said.

The TPP agreement negotiated by U.S. President Barack Obama's administration would cover some 40 percent of the world's gross domestic product. The agreement's fate remains uncertain as both the Republican and Democratic nominees in the U.S. presidential campaign have criticized the proposed agreement.

Republican nominee Donald Trump has said he opposes the TPP, and Democratic rival Hillary Clinton has said she will block any trade deal that threatens U.S. jobs, including the TPP.

Atlanta-based UPS has said open trade creates jobs for exporters as well as for UPS, the world's largest package delivery company. Abney said the TPP contains a chapter on small businesses, and should help smaller U.S. firms increase exports.

He said UPS also advocates public and private training programs for anyone who loses their job as a result of the TPP, to "help prepare displaced workers for 21st century jobs."

"Just because this will create jobs doesn't mean we shouldn't do things for those (who) do get affected here." he said.

Source by Reuters

Large SolarCity owner cuts stake in second quarter

Business

A large SolarCity Corp (O:SCTY) hedge fund investor cut most of its stake in the solar panel installer during the second quarter, quarterly filings show, the period when the company received a buyout offer from Tesla Motors Inc (O:TSLA).

Gilder Gagnon Howe & Co listed owning 43,840 shares of SolarCity at the end of June, down from 832,139 shares of the company at the end of the first quarter, a recent securities filing showed.

During the same period, Gilder Gagnon of New York boosted its stake in Tesla 24 percent to 808,661 shares.

SolarCity this month accepted a $2.6 billion offer from electric carmaker Tesla, a deal first announced on June 21 and a step in the plan of Elon Musk to create a carbon-free energy and transportation company.

Musk is chief executive of Tesla, chairman of both companies and their biggest shareholder. Shares of SolarCity have fallen more than half this year, making some skeptical of the deal that caused Tesla's stock to drop 10 percent on the first trading day after the merger was announced. Tesla shares have since recovered.

Source by Reuters

Nigeria stocks higher at close of trade; NSE 30 up 0.10%

Stock market

Nigeria stocks were higher after the close on Monday, as gains in the Food, Beverages & Tobacco, Insurance and Banking sectors led shares higher.

At the close in Lagos, the NSE 30 rose 0.10%.

The best performers of the session on the NSE 30 were Unilever Nig (LAGOS:UNILEVE), which rose 5.00% or 1.75 points to trade at 36.75 at the close. Meanwhile, Skye Bank(LAGOS:SKYEBAN) added 4.69% or 0.03 points to end at 0.67 and Union Bank LG(LAGOS:UBN) was up 3.75% or 0.15 points to 4.15 in late trade.

The worst performers of the session were Diamond Bank (LAGOS:DIAMONB), which fell 4.24% or 0.050 points to trade at 1.130 at the close. Firstcity Bnk (LAGOS:FCMB) declined 4.00% or 0.05 points to end at 1.20 and Dangote Flour Mills PLC (LAGOS:DANGFLOUR) was down 3.69% or 0.16 points to 4.18.

Falling stocks outnumbered advancing ones on the Lagos Stock Exchange by 35 to 11 and 40 ended unchanged.

Shares in Diamond Bank (LAGOS:DIAMONB) fell to all time lows; falling 4.24% or 0.050 to 1.130.

Crude oil for September delivery was up 2.52% or 1.12 to $45.61 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October rose 2.47% or 1.16 to hit $48.13 a barrel, while the December Gold contract rose 0.23% or 3.15 to trade at $1346.35 a troy ounce.

EUR/NGN was up 1.25% to 359.960, while USD/NGN rose 0.16% to 321.500.

The US Dollar Index was down 0.10% at 95.58.

Source by Investing.com

Stocks at record highs as materials shares surge

Wall Street

 U.S. stock indexes climbed to all-time highs on Monday, building on their record-setting rallies of the past few weeks, as raw materials stocks surged.

The S&P 500 materials index (SPLRCM) rose 1.06 percent to a one-month high, with all its components in the black, as the dollar index (DXY) fell for the second straight day.

Better-than-expected corporate earnings in the latest quarter, coupled with expectations that the Federal Reserve would continue to keep rates low, have stoked appetite for U.S. equities.

Since July, the S&P 500 index has notched 13 record intraday highs, including on Monday.

The CBOE volatility index (VIX) also called Wall Street's "fear gauge" edged up slightly, but remained near year-lows suggesting the markets were in a risk-on mode.

"Our sense is that we're still in this Goldilocks period where it's a sweet spot for equities and that will not change probably until the next rate hike," said Mike Bailey, director of research at FBB Capital Partners.

The Federal Reserve releases on Wednesday the minutes of its July meeting that could provide clues on its plans to raise rates and its view on the health of the economy.

Still, traders are largely skeptical of a rate hike in the near term, with U.S. inflation below the Fed's 2 percent target and as central banks worldwide unleash stimulus programs to support their economies.

The odds of a hike in September stand at 12 percent, rising to about 38 percent for December, according to CME Group's Fedwatch tool.

At 12:26 p.m. ET (1626 GMT), the Dow Jones Industrial Average (DJI) was up 82.73 points, or 0.45 percent, at 18,659.2.

The S&P 500 (SPX) was up 9.69 points, or 0.44 percent, at 2,193.74.

The Nasdaq Composite (IXIC) was up 36.42 points, or 0.7 percent, at 5,269.32.

Post Properties (N:PPS) hit a record high after the company agreed to be bought by Mid-America Apartment Communities (N:MAA) for about $3.88 billion. Mid-America's shares fell 5.8 percent.

Xylem (N:XYL) rose 3.6 percent after the water technology company said it would buy Sensus USA for about $1.7 billion in cash.

"The fact that any company would make a multi-billion dollar deal today also speaks of confidence in the U.S. market," Bailey said.

Apple (O:AAPL) rose 1.1 percent to $109.34 and gave the biggest boost to the S&P and the Nasdaq, while the Philadelphia SE semiconductor index (SOX) touched a 16-year high.

Twitter (N:TWTR) rose 6.2 percent to an eight-month high after the New York Times reported the company was in talks to bring its app to the Apple TV platform.

Advancing issues outnumbered decliners on the NYSE by 2,110 to 792. On the Nasdaq, 1,998 issues rose and 782 fell.

The S&P 500 index showed 33 new 52-week highs and no new lows, while the Nasdaq recorded 130 new highs and 24 new lows.

Source by Reuters

Morocco stocks higher at close of trade; Moroccan All Shares up 0.21%

Stock market

Morocco stocks were higher after the close on Monday, as gains in the Food Producers & Processors, Construction & Building Materials and Mining sectors led shares higher.

At the close in Casablanca, the Moroccan All Shares gained 0.21%.

The best performers of the session on the Moroccan All Shares were IB Maroc Com SA (CS:IBC), which rose 9.89% or 9.60 points to trade at 106.70 at the close. Meanwhile, Taqa Morocco SA (CS:TQM) added 5.07% or 36.00 points to end at 746.00 and Cosumar(CS:CSMR) was up 5.02% or 9 points to 196 in late trade.

The worst performers of the session were Delattre Levivier Maroc (CS:DLM), which fell 5.96% or 10.55 points to trade at 166.50 at the close. Timar (CS:TIM) declined 5.87% or 18.50 points to end at 296.50 and Disway SA (CS:DWY) was down 3.59% or 8.80 points to 236.20.

Falling stocks outnumbered advancing ones on the Casablanca Stock Exchange by 25 to 15 and 5 ended unchanged.

Shares in Taqa Morocco SA (CS:TQM) rose to all time highs; gaining 5.07% or 36.00 to 746.00. Shares in Timar (CS:TIM) fell to 5-year lows; losing 5.87% or 18.50 to 296.50.

Crude oil for September delivery was up 2.56% or 1.14 to $45.63 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October rose 2.47% or 1.16 to hit $48.13 a barrel, while the December Gold contract rose 0.29% or 3.95 to trade at $1347.15 a troy ounce.

EUR/MAD was up 0.21% to 10.9110, while USD/MAD fell 0.27% to 9.7413.

The US Dollar Index was down 0.10% at 95.58.

Source by Investing.com

EU to propose minimum spectrum license duration of 25 years

Technology

The European Commission is to propose that telecom spectrum licenses are granted for a minimum of 25 years to increase investment certainty for operators, under a reform of the bloc's telecoms rules, according to an EU document seen by Reuters.

The European Union executive will publish its proposal next month and expects it to be endorsed in 2018. However, as it will need to be approved by member states and the European Parliament before becoming law, it may yet be revised as EU states could resist the plan.

The European Commission has sought for years to coordinate how national governments allocate blocks of airwaves to mobile operators such as Vodafone (LON:VOD), Deutsche Telekom (DE:DTEGn) and EE in a bid to create a single European telecoms market. Telecoms operators have also long called for more EU coordination of spectrum policy.

But national authorities are loath to relinquish control over how they auction wireless spectrum, which they consider a national resource, and license durations vary across Europe, making it harder for companies to operate on a larger scale. Spectrum auctions can fetch billions of euros.

Under the Commission's plan, licenses would last at least 25 years and the Commission would have the power to adopt binding guidance on some conditions of the assignment process, such as the deadlines for spectrum allocation and spectrum sharing.

Member states would also be able to jointly organize spectrum auctions to award multi-country or pan-EU licenses, although this would be voluntary.

"Long-term license durations of at least 25 years proposed in this option will increase stability and certainty of investments as well as innovation requirements," the document says.

Telecoms operators see a coordinated EU policy as a way to put Europe at the forefront of the drive to roll out the next generation of mobile broadband, 5G, which will underpin innovative services such as driverless cars, remote healthcare and connecting billions of everyday objects to the Internet.

"Longer spectrum licenses and harmonization send a pro-investment signal to boardrooms and investors across Europe," a telecoms industry source said.

The Commission also wants to establish a peer review mechanism to review national regulators' draft measures on spectrum allocation.

"This mechanism would foster common interpretation and implementation across the EU of those elements of spectrum assignment which most impact business decisions and network deployment," the document says.

The EU executive has made a priority of fostering the early development of 5G mobile technology in Europe, and estimates that 5G will bring 146.5 billion euros ($164 bln) per year in benefits.

Source by Reuters

France stocks lower at close of trade; CAC 40 down 0.05%

Stock market

France stocks were lower after the close on Monday, as losses in the Financials, Consumer Services and Industrials sectors led shares lower.

At the close in Paris, the CAC 40 lost 0.05%, while the SBF 120 index lost 0.01%.

The best performers of the session on the CAC 40 were Peugeot SA (PA:PEUP), which rose 1.19% or 0.16 points to trade at 13.59 at the close. Meanwhile, Renault SA (PA:RENA) added 1.17% or 0.89 points to end at 76.89 and Bouygues SA (PA:BOUY) was up 0.74% or 0.20 points to 27.95 in late trade.

The worst performers of the session were Orange SA (PA:ORAN), which fell 1.10% or 0.15 points to trade at 13.97 at the close. Kering SA (PA:PRTP) declined 0.85% or 1.50 points to end at 175.30 and Societe Generale (PA:SOGN) was down 0.70% or 0.23 points to 31.82.

The top performers on the SBF 120 were Vallourec (PA:VLLP) which rose 7.50% to 4.157,Innate Pharma (PA:IPH) which was up 3.38% to settle at 11.330 and CGG SA (PA:GEPH) which gained 2.92% to close at 22.9000.

The worst performers were Air France KLM SA (PA:AIRF) which was down 2.19% to 5.133 in late trade, Television Francaise 1 SA (PA:TFFP) which lost 1.41% to settle at 8.712 and Orange SA (PA:ORAN) which was down 1.10% to 13.97 at the close.

Rising stocks outnumbered declining ones on the Paris Stock Exchange by 336 to 285 and 121 ended unchanged.

The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was up 7.62% to 17.66.

Gold for December delivery was up 0.31% or 4.15 to $1347.35 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 2.43% or 1.08 to hit $45.57 a barrel, while the October Brent oil contract rose 2.45% or 1.15 to trade at $48.12 a barrel.

EUR/USD was up 0.27% to 1.1191, while EUR/GBP rose 0.54% to 0.8691.

The US Dollar Index was down 0.15% at 95.54.

Source by Investing.com

Russia stocks higher at close of trade; MICEX up 0.51%

Stock market

Russia stocks were higher after the close on Monday, as gains in the Oil & Gas, Manufacturing and Mining sectors led shares higher.

At the close in Moscow, the MICEX rose 0.51% to hit a new all time high.

The best performers of the session on the MICEX were MMK (MCX:MAGN), which rose 4.50% or 1.435 points to trade at 33.335 at the close. Meanwhile, PIK (MCX:PIKK) added 2.83% or 7.10 points to end at 258.30 and Rosneft (MCX:ROSN) was up 2.46% or 8.15 points to 339.00 in late trade.

The worst performers of the session were AFK Sistema (MCX:AFKS), which fell 1.14% or 0.265 points to trade at 23.010 at the close. Surgut-pref (MCX:SNGS_p) declined 1.10% or 0.370 points to end at 33.250 and VTB (MCX:VTBR) was down 0.88% or 0.0006 points to 0.0674.

Rising stocks outnumbered declining ones on the Moscow Stock Exchange by 124 to 108 and 15 ended unchanged.

Shares in MMK (MCX:MAGN) rose to 5-year highs; up 4.50% or 1.435 to 33.335.

The Russian VIX, which measures the implied volatility of MICEX options, was up 2.16% to 26.000.

Gold for December delivery was up 0.31% or 4.15 to $1347.35 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 2.43% or 1.08 to hit $45.57 a barrel, while the October Brent oil contract rose 2.41% or 1.13 to trade at $48.10 a barrel.

USD/RUB was down 1.08% to 64.0653, while EUR/RUB fell 0.84% to 71.675.

The US Dollar Index was down 0.14% at 95.55.

Source by Investing.com