MARKETS / FINANCE

Wall Street was poised for a weak open on Tuesday, easing back after a 10-week high as disappointing results from Dow Chemical Co and Procter & Gamble pushed investors to the sidelines.

Stock index futures declined further on Tuesday after U.S. data showed consumer spending and incomes were unexpectedly flat in June and personal saving rose to the highest level in a year.

Stock index futures fell on Tuesday, easing back after Wall Street closed at its highest level in 10 weeks, following disappointing results from Dow Chemical and Procter & Gamble that pushed investors to the sidelines.

Dow Chemical Co posted lower-than-expected quarterly profit on Tuesday as three plant outages offset a jump in sales across all units and regions, sending shares of the biggest U.S. chemical producer down 3.6 percent in premarket trading.

The dollar hit multi-month lows against major currencies on Tuesday, hit by signs of mounting concern among U.S. policymakers about the pace of economic recovery, as technical factors kept the currency under selling pressure.

Stock index futures slipped on Tuesday, after Wall Street closed at its highest level in 10 weeks, but bulls could be tempted into the market as the S&P pierced two key technical levels.

Japan's finance minister on Tuesday sidestepped questions about intervention to curb yen strength and said markets should determine exchange rates, prompting the currency to rise to an eight-month high against the dollar.

And it was not Portugal banks which had pawned its gold to tide over the economic crisis. A few weeks ago when Portugal and Greece were facing severe financial crisis, a mysterious gold swap by undisclosed central banks with Bank for International Settlements had sparked rumours that Portugal and Greece banks were on the verge of collapse and they had pawned their gold.

Oil prices slipped back from three-month highs toward $81 on Tuesday as stock markets consolidated ahead of key U.S. economic data. Benchmark U.S. oil futures rose 3 percent on Monday to above $80 per barrel for the first time since early May after trading between $70 and $80 for almost two months.

Gold rose in Europe on Tuesday as physical consumers like jewelers took advantage of lower prices to buy into the precious metal, and as China announced moves to allow greater freedom in its gold trade. Spot gold was bid at $1,183.65 an ounce at 0943 GMT, against $1,181.25 late in New York on Monday. U.S. gold futures for August delivery rose 40 cents to $1,185.80 an ounce.

The dollar hit multi-month lows against major currencies on Tuesday, stung by speculation that U.S. interest rates will stay low, while technical factors kept the currency under selling pressure. The dollar index, a measure of its value against a currency basket, fell to 80.539, its weakest since mid-April and marking its first break since January below its 200-day moving average, a move that analysts said would open the door to more losses.

Thailand's TFEX (The Thailand Futures Exchange) on Monday started trade in new 10-baht weight gold futures contracts after starting trade in 50-baht weight contracts in 2009. A total of 1,089 contracts were traded, including 697 deals of GF10Q10 contracts maturing in August. Total trade on the TFEX Monday was 12,933 contracts, with over half representing trade in SET50 index futures.

Oil prices extended three-month highs toward $82 on Tuesday, tracking gains in Asian equities following strong bank earnings and upbeat manufacturing data for industrialized economies a day earlier. U.S. September crude rose as much as 28 cents to $81.62, 15 cents short of Monday's three-month intraday high, and was up 19 cent at $81.53 a barrel by 4 a.m. ET, while ICE Brent rose 22 cents to $81.04.

The dollar hit multi-month lows against major currencies on Tuesday, stung by speculation that U.S. interest rates will stay low, while technical factors kept the currency under selling pressure. The dollar index, a measure of its value against a currency basket, fell to 80.587, its weakest since mid-April and marking its first break since January below its 200-day moving average, a move that analysts said would open the door to more losses.

A question-and-answer page on Google Hong Kong's website became inaccessible to some mainland Chinese users on Tuesday, underscoring Beijing's sensitivity about the Internet.

NYSE Euronext said its quarterly profit rose 25 percent, beating expectations, as a surge in trading and revenue generation from new initiatives boosted the transatlantic exchange operator.

U.S. stock index futures pointed to a lower open on Wall Street on Tuesday following the previous session's strong gains, with futures for the S&P 500 down 0.41 percent, Dow Jones futures down 0.31 percent and Nasdaq 100 futures down 0.28 percent at 3:55 a.m. ET.

Investment bank Houlihan Lokey had declined to endorse Sam Zell's $8.2 billion leveraged buyout of Tribune Co, citing the deal would saddle the media conglomerate with too much debt, the Wall Street Journal said, citing people familiar with the matter.

Asian stocks rose to their highest levels in nearly three months on Tuesday, boosted by strong European bank results and a sign the U.S. economy was stronger than expected.

Gold steadied in thin Asian trade Tuesday as reports of economic recovery and strong stocks countered weak dollar. Spot gold was seen trading at $1182.18 an ounce at 12.30 p.m Singapore time while US futures for December delivery hardly moved at $1,185 an ounce.

Gold held steady near a one-week high on Tuesday as a weak U.S. dollar spurred early buying from investors, while jewelers were also expected to snap up the metal before festive seasons in India and Indonesia.

The dollar was hovering near a three-month low against a basket of currencies on Tuesday on the perception that the U.S. growth outlook is deteriorating, forcing the Federal Reserve to keep interest rates low. The Australian dollar dropped after retail sales and building approvals data in Australia disappointed bulls ahead of a Reserve Bank of Australia policy announcement.

Oil prices extended three-month highs toward $82 on Tuesday, tracking gains in Asian equities following strong bank earnings and upbeat manufacturing data for industrialized economies a day earlier. U.S. September crude rose as much as 28 cents to $81.62, 15 cents short of Monday's three-month intraday high, and was up 1 cent at $81.35 a barrel by 12:37 a.m., while ICE Brent rose 2 cents to $80.84.

Gold rose to near a 1-week high on Tuesday as a weak U.S. dollar spurred buying from investors, while jewelers were also expected to snap up the metal ahead of the festive season. But trading was thin ahead of a trail of U.S. data such as June personal income, June factory orders and July auto sales, offering clues on the health of the economy. Platinum and palladium failed to sustain early gains.

The dollar was hovering near a three-month low against a basket of currencies on Tuesday on the perception that the U.S. growth outlook is deteriorating, forcing the Federal Reserve to keep interest rates low. The Australian dollar dropped after retail sales and building approvals data in Australia disappointed bulls ahead of a Reserve Bank of Australia policy announcement.

Supermodel Naomi Campbell has applied for banning media coverage surrounding her as she prepares to give testimony in the war crimes trial of former Liberian President Charles Taylor. Campbell is to appear in a court in The Hague on August 9 to answer questions about whether she was given a blood diamond by former Liberian dictator, Daily Mail online reported.

Two hedge funds launched by former star traders at Goldman Sachs have agreed to merge in a deal that will bring their combined assets under management to more than $10 billion, the Financial Times said on Tuesday.

Funds that own 1 percent of Occidental Petroleum Corp are targeting board seats at the fourth-largest U.S. oil company because of their concern about how it pays executives, one of the funds said on Monday.

he Australian Dollar continues to benefit from a weaker greenback and opens this morning buying 0.9136.