Swedish Krona Gains on Signs Growth Is Quickening, Interest Rate Outlook

(Bloomberg) -- Sweden's krona rose on expectations
faster economic growth and further interest-rate increases will
make the Nordic currency more attractive to investors.

The Stockholm-based Riksbank, Sweden's central bank, said in
June it will probably lift its benchmark rate twice more this
year bringing it to 4 percent. Gross domestic product growth
quickened to an annual 3.6 percent in the second quarter from 3
percent in the first, the statistics office said last week.


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U.S. Treasuries Are Little Changed on Growth Concern as Stocks Decline

(Bloomberg) -- Treasuries were little changed as
global stocks fell and speculation increased that losses tied to
subprime mortgages will slow economic growth.

Ten-year notes may extend their gains into a fifth week
after the risk of owning corporate bonds rose and a report showed
employers added fewer jobs than expected last month. Investors
increased bets the Federal Reserve will cut interest rates as
soon as October.


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European Government Bonds Advance as Asian Stocks Slide on Subprime Losses

(Bloomberg) -- European government bonds rose for a
second day as Asian stocks slid on concern U.S. subprime mortgage
losses will slow economic growth and drive up global financing
costs.

Gains in bunds pushed benchmark 10-year yields to near the
lowest since May as investors sold riskier assets and sought the
relative safety of government debt. Bear Stearns Cos. ousted Co-
President Warren Spector after credit-market losses and eroding
investor confidence.


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US stock indexes flat, but volatility running high

(Reuters) - U.S. stocks were little changed on Monday after gyrating between negative and positive territory in the first half hour as worsening sentiment about the global credit environment countered optimism about economic growth.

Tightening lending standards threaten to slow or halt the heavy pace of corporate buy-outs that have fueled a rally in equities.


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Japan Shares Drop on Concern U.S. Housing Slump Will Worsen; Canon Plunges

(Bloomberg) -- Japanese stocks tumbled by the most
in more than four months, on concern a worsening U.S. housing
slump will slow economic growth in the world's biggest economy
and prompt investors to shun equities.

Companies that rely on U.S. sales plunged. Canon Inc. slid
the most since October 2003 and Honda Motor Co. fell 2.5 percent.


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U.K. Pound Advances for Sixth Week on GDP Report, Outlook for Higher Rates

(Bloomberg) -- The pound posted its longest winning
run against the dollar in more than a year after a report showed
U.K. economic growth unexpectedly quickened in the second
quarter, fueling expectations of higher interest rates.

The U.K. currency rose to a 26-year high on speculation the
Bank of England will raise rates half a percentage point from
5.75 percent by year-end while the Federal Reserve stays on hold.
The pound also advanced as the Fed trimmed its forecasts for
economic growth and Bear Stearns Cos. reported losses on hedge
funds that bet on bonds backed by subprime loans.


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Dollar Falls to Record Low Versus Euro on Concern Subprime Losses to Mount

(Bloomberg) -- The dollar fell to a record low
versus the euro and headed for a sixth straight weekly drop as
concern increased that losses in subprime mortgages will worsen
a slowdown in U.S. housing and curb economic growth.

The currency also tumbled versus the yen as investors
exited riskier bets. Federal Reserve Chairman Ben S. Bernanke
said yesterday there will be ``significant financial losses'' on
mortgages given to people with poor credit histories.


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Treasuries Advance on Speculation Subprime Losses to Damp Economic Growth

(Bloomberg) -- Treasuries climbed on speculation
rising subprime mortgage defaults will worsen a slowdown in the
housing market and curb economic growth.

U.S. 10-year notes headed for a second weekly gain as funds
including two at Bear Stearns Cos. incurred losses on securities
backed by home loans. Federal Reserve Chairman Ben S. Bernanke
said losses on investments linked to mortgages given to people
with poor credit histories may total $100 billion. The risk of
owning European corporate bonds rose to a two-year high today.


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Gold, Silver Gain as Dollar's Slump Boosts Metals' Appeal as Investment

(Bloomberg) -- Gold and silver gained for a second
day in New York on speculation a decline in the value of the
dollar will boost the appeal of precious metals as alternative
investments.

Gold generally moves in the opposite direction of the
dollar. The U.S. currency fell to a record against the euro
yesterday on speculation that interest rates will rise faster in
Europe after Federal Reserve Chairman Ben S. Bernanke scaled
back forecasts for U.S. economic growth.


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Brazil's Real Rises on Expectations Faster Chinese Growth to Boost Exports

(Bloomberg) -- Brazil's currency rose to a seven-
year high as a report showing economic growth quickened in China
in the second quarter fueled expectations that demand for
Brazilian exports will keep rising.

Growth in China, the third-biggest buyer of Brazilian
exports, accelerated to 11.9 percent in the second quarter, the
fastest pace in 12 years, from 11.1 percent in the first quarter,
the statistics bureau said in Beijing today. China imports
Brazilian commodities including iron ore, soybeans and diamonds.


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Shanghai copper rises 2.3 pct, tin soars

(Reuters) - Shanghai copper rose more than 2 percent on Thursday, buoyed by demand for physical material and industrial action at key mines in Latin America amid an already tight market and strong Chinese economic growth data.

Three-month tin on the London Metal Exchange hit an all-time high of $15,530 on the electronic Select trading system, extending gains the previous day as supply shortfalls spurred fund buying.


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Australia Dollar Trades Near 18-Year High as Prices of Commodities Gain

(Bloomberg) -- The Australian dollar traded near an
18-year high against the U.S. currency and the strongest in 16
years versus the yen as the prices of raw materials the nation
exports rose.

The currency gained for a sixth day against the yen as a
measure of six metals on the London Metal Exchange, including
copper and aluminum, climbed 0.7 percent yesterday. Commodity
exports add about 14 percent to Australia's gross domestic
product. It also advanced a second day against the U.S. dollar
after the Federal Reserve lowered its economic growth forecast.


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Optimism for Global Stock Gains Reaches 16-Month High, Merrill Survey Says

(Bloomberg) -- Optimism that global stocks will
climb has increased to a 16-month high in July as investors cast
aside concerns about the effects of rising credit-default risk,
a Merrill Lynch & Co. survey showed.

Confidence that economic growth will continue spurred money
managers to buy riskier assets, including emerging-market
shares, while they reduced holdings of bonds and cash, according
to 186 poll respondents, who together manage $618 billion.


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US shares extend losses on Bernanke testimony

(Reuters) - U.S. stocks added to losses on Wednesday as Federal Reserve Chairman Ben Bernanke's comments to Congress about the economy, inflation and housing added to Wall Street jitters.

In addition, Bernanke said the Fed expects to see economic growth expand at 2.25 percent to 2.5 percent this year and 2.5 percent to 2.75 percent in 2008, one-quarter percentage point below the Fed's estimate six months ago.


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Treasuries Post Weekly Gain Over Subprime Mortgage Crisis, Economic View

(Bloomberg) -- Treasuries posted a weekly gain as
the subprime mortgage crisis sent investors to the safety of
U.S. government debt and raised concern that housing weakness
will slow economic growth.

Benchmark 10-year note yields dropped more than 8 basis
points for the week. Treasuries strengthened today as a Commerce
Department report showed U.S. retail sales fell last month by
the most in almost two years.


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US stock indexes flat as data offsets GE news

(Reuters) - U.S. stocks were little changed on Friday as renewed worries about economic growth and inflation offset news of General Electric's expanded share repurchase plan and earnings.

A government report showed retail sales suffered their biggest monthly drop in nearly two years in June as the housing market slump took its toll on consumers.


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US STOCKS-Futures flat as data offsets GE-led gain

(Reuters) - NEW YORK, July 13 - U.S. stock index futures were
little changed on Friday after data showing a drop in retail
sales and a gain in import prices in June revived worries about
economic growth and inflation.




The data caused futures to trim earlier gains sparked by
news General Electric had expanded its share repurchase
plan. The turnabout threatened to stall the market's advance
after Thursday's record-setting rally.


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Risk appetite revives yen-funded carry trades

(Reuters) - The yen hit a record low against the euro on Friday, weighed down by the prospect of Japanese interest rates staying ultra low for some time, leaving the yen as a cheap source of borrowing for purchases of higher yielding currencies.

Abating concerns about troubles in the U.S. subprime mortgage market spilling over into slower U.S. economic growth helped support the dollar and heaped further pressure on the yen, breathing fresh life into flagging risk appetite.


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European Government Bonds May Drop for Second Day on Higher Rates Outlook

(Bloomberg) -- European government bonds may decline
for a second day on speculation the European Central Bank will
keep raising interest rates to curb quickening economic growth.

Benchmark debt fell, pushing 10-year yields up from a week-
low, as the ECB said rates are still low enough to support growth
and the European Union said the region's economy grew at a
faster-than-expected pace in the first quarter. A report July 16
may say inflation held at 1.9 percent, just below the ECB's 2
percent target, according to economists in a Bloomberg survey.


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Asian Currencies Gain as Stock Rally Draws Investors to Emerging Markets

(Bloomberg) -- Asian currencies, including
Indonesia's rupiah and the South Korean won, gained on
speculation a regional stock rally will increase demand for
emerging-market assets.

Investors sold yen to fund higher-yielding currencies in
so-called carry trades, said Catherine Tan, head of emerging
markets at Forecast Singapore Ltd. A surge in U.S. stocks
yesterday eased concern a housing slump will stunt export-led
economic growth in Asia.


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