Reuters Insider - Inside The News: Swissie Rallies in Asia's Trading Finale

China Rare Earth Holdings

13/06/2016 11:04

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        The Swiss franc maintains its momentum in the     
                     final Asia trading session of 2010, as South      
                     Korean CPI comes in hotter than expected.         
 
 
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Transcript (May be auto-generated)

                 Inside the News at noon on the last trading day of the year, Friday, December 
31. The Dollar struggling in Asian trade, treading water near 81.50 versus the 
Yen, though turnover is weak with Japan and South Korea both on holiday. The 
Swiss Franc continues to be a star performer, hitting fresh record highs against
the greenback, and also trading within reach of its two-year highs against the 
Euro. Well Korean Won short of one trade is closed for business today, but 
Dollar-Won NDFs are sliding as overseas investors bet on Won appreciation in the
New Year; the one-month NDF flirting with the 1,120 mark in extremely thin 
trade. Fresh CPI data from South Korea showing inflation unexpectedly picking up
by 3.5% in December; that's versus our poll at 3.2% year-on-year; South Korea 
Deputy Bureau Chief Choonsik Yoo says the CPI number has not shaken up the 
markets' timeline for BOK rate rises next year. The markets' expectation is that
the Bank of Korea will next increase interest 

rates in February at the earliest. And today's numbers came out quite strongly, 
but not too much strong as to advance the expectation. So the markets' 
expectations still remains that the Bank of Korea will next raise interest rates
in February, before raising once again probably during the first half of next 
year. More bad news for rare earth consumers. Reports from the official China 
Securities Journal suggesting Beijing may not announce additional quotas for the
rare earth metals in 2011. That's after China rattled international markets 
earlier this week with a 35% cut in first half export quotas for the metals. 
Shares of Australian rare earth miner Lynas Corp. are sharply higher in their 
last day of trade about 4.3%, while Hong Kong-listed China Rare Earth Holdings 
slipping on the last day of 

trade. And more difficulties in Australia, storm-swept Queensland State where 
Gladstone Port is the latest to announce an impact on its coal operations. The 
port says it may not receive any new supplies for a full week, though it does 
have stockpiles to cover for that period. Anglo American and Rio Tinto are among
coal operators who have declared force majeure this week as rains leave them 
unable to fulfill contracts. US stocks closed slightly lower on Thursday, though
full year gains clocking in at about 13%. Reuters Equity Analyst John Kozey says
investors are hesitant right now to build positions ahead of 2011. Thursday's 
action has seen a continuation of the quietness that we expected in this 
pre-middle of the holiday-type period. 

Airline stocks has been doing a little than the market surprisingly, even in 
spite of the weather that we've seen across the US and up the East coast. Now, I
would expect seasonally strong money flows to contribute to positive markets 
beginning early next week. If you're wondering how Asian stock markets fared 
this year, here's a regional breakdown for equity market performance by index: 
Sri Lanka topping the list of gainers up about 100% for the year, while Mainland
China languishing down around 15%. And we'll leave you now with pictures of 
Times Square in New York where tourists got an early glimpse of one of the most 
iconic New Year celebrations around the world. Organizers tested the New Year's 
Eve Ball Drop a day before the 2011 kickoff; weighing in over 11,000 lbs, the 
ball is decorated with thousands of crystals and LED lights. I'm John Gordon 
from the Reuters team in Hong Kong, wishing you a Happy New Year