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| Commodity Market |
Here's a consolidated snapshot of what's going on in Currencies, commodities and Bonds around the world.
Currencies:
The rupee was near its weakest level in over five weeks in afternoon trades as domestic equities stayed deep in the red, tailing the global shares rout, fuelling concerns of outflows.
The partially convertible rupee was at 44.79/80 per dollar, after touching 44.8550, its lowest since June 29. The rupee had settled 0.5 percent weaker on Thursday at 44.545/555.
The Swiss franc pulled back from a record high against the euro as nervous traders cut long positions in thin trade, but mounting fears of an economic quagmire in the United States and Europe were likely to keep safe-haven currencies in demand.
The yen edged higher and bounced away from a three-week low hit the previous day after Japan's massive yen-selling intervention, but concerns that the Japanese could intervene again limited the currency's rebound.
The dollar was under pressure against the yen Friday on widening fears of a global slowdown, despite speculation Japan may step into markets again and buy the greenback to temper the soaring yen.
The dollar traded at 78.54 yen, down from 78.93 yen in New York, a day after Japan intervened in forex markets to stem the yen's rise.
Commodities:
Gold edged up more than half a percent as investors used bullion to shelter from the storm engulfing financial markets on concerns that the United States may be facing another recession and Europe's debt crisis is spreading to some of its largest economies.
Spot gold rose 0.84 percent to $1,661.66 an ounce by 0617 GMT, having hit a low of around $1,641. Bullion struck a record around $1,681 an ounce on Thursday before losing much of the gains.
Morgan Stanley raised its price forecast for gold to $1,511 from $1,401 for 2011, citing enhanced contagion risk from the European debt crisis and continued uncertainty over U.S. macroeconomic outlook.It also lifted its 2012 price outlook to $1,624 from $1,330.
India gold futures extended gains for a fourth session to hit a new peak following a rally in overseas markets and a weaker rupee, which traded at its lowest level in five weeks, pushing physical traders to the sidelines ahead of a slew of festivals starting later next week.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) struck a record of 24,300 rupees per 10 grams, before trading 0.75 percent higher at 24,247 rupees.
Oil prices extended sharp losses, falling to near $85 a barrel Friday in Asia amid expectations of a slowing global economy will weaken demand for crude.
Benchmark oil for September delivery was down $1.31 to $85.32 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude tumbled $5.30 to settle at $86.63 on Thursday.
Global commodity benchmark the Reuters-Jefferies CRB index is down more than 4 percent for the week, its biggest drop since losing nearly 9 percent in May's across-the-board slide, also fueled by global growth concerns.
London copper dropped 2 percent to $9,165 a tonne, after hitting a low of $9,143 a tonne, a level not seen since June 29. Zinc was down more than 3 percent and lead, nickel and tin slid over 2 percent.
In Shanghai, aluminium and zinc slumped by their daily trading limits of 4 percent and 6 percent, respectively, while copper dropped 4.3 percent.
Shanghai rubber futures fell as much as 5.8 percent to 33,605 yuan per tonne and in Malaysia, palm oil futures dropped 2.6 percent to a session low of 3,021 ringgit.
In the grains market, Chicago Board of Trade wheat fell more than 2 percent to as low as $6.67 per bushel and corn dropped 1.6 percent to $6.90-1/2.
Bonds
Indian bond yields and swaps plunged as investors scurried to safe-haven government securities across regions on renewed concerns over global economic recovery.
Local bond dealers preferred to hold on to fixed-income securities as hazy global outlook outweighed domestic worries such as the central bank's persistent anti-inflationary stance to tame stubbornly high inflation.
The 10-year benchmark bond yield was 9 basis points lower at 8.31 percent, its lowest since July 26. Traders expect it to trade in a 8.28-8.35 percent band in the day.
Positions in equities and commodities were being scrapped and a scramble for the safety of cash and top-rated government bonds was on. In the global bond markets, short-term core European government debt was in demand.
Apart from signs that the U.S. and global economy is weakening -- despite record low interest rates and the pumping of liquidity into the system -- the focus was clearly on Europe, where bond yields in Spain and Italy have been blowing out, threatening the same kind of refinancing problems that have already smitten Greece, Ireland and Portugal.
Italian 10-year government bond yields rose above their Spanish equivalent. Italy has emerged as the market's major concern after a rescue deal that was intended to stop the spread of the crisis failed to convince investors it had the firepower to ease pressure on the vast Italian bond market.
