MARKETS / FINANCE

Over one-third of investors expect Europe's banks to raise significant capital in the next six months following a health check that forced little fundraising but showed up some weak spots, according to a survey.

The court-appointed examiner investigating Tribune Co's bankruptcy said he has found some evidence of dishonesty in the 2007 leveraged buyout of the company, court documents showed.

Almost two-thirds of investors expect Europe's banks to raise significant capital in the next year following a health check that forced little fundraising but showed up some weak spots, according to a survey.

Upbeat corporate results from both sides of the Atlantic lifted U.S. stock index futures on Tuesday, setting up Wall Street for a fourth straight day of gains.

Panic and fears over the future of US and European economies have become the best aphrodisiacs for gold, which has been in an uncertain zone for the past few weeks.

A increase in labour disputes between management and workers in China, mostly at foreign-owned factories in the southeast, has raised questions about the country's future as a low-cost manufacturing centre.

UBS flagged a return to client inflows by year-end as strong equities and currency trading gains helped it outdo Deutsche Bank and other rivals, which were hit hard by the European sovereign debt crisis.

Upbeat corporate results from both sides of the Atlantic lifted U.S. stock index futures on Tuesday, setting up Wall Street for a fourth straight day of gains.

Results from two of Europe's top banks, UBS and Deutsche Bank reassured investors following last week's European Union tests of the sector's ability to withstand financial shocks.

Finally, the US housing sector is back on track posting a 24 per cent growth in June. June's rebound in new home sales should be viewed as a major boost to the US economy. But the problem is that any good news from the world's biggest economic power is a setback to the gold prices, which have been maintaining record levels in the recent past.

Gold held below $1,185 an ounce in Europe on Tuesday, supported by physical demand after this month's slip and a softer dollar, but with a dip in holdings of the largest gold exchange-traded fund undermining sentiment.

Oil prices were steady near $79 a barrel as the fading Tropical Depression Bonnie brought more output back online in the Gulf of Mexico, dampening otherwise buoyant sentiment following positive U.S. macroeconomic data.

UBS outdid rivals thanks to strong investment banking revenues and shrinking client outflows, while Deutsche Bank held ground after a drop in loan loss provisions.

The euro hovered close to a two-month peak against the dollar on Tuesday, retaining support after last week's European bank stress tests revealed no horrors while increased demand for riskier assets weighed on the dollar.

World stocks hit a 2-1/2 month high on Tuesday while the euro held near a two-month peak versus the dollar as upbeat results from Swiss bank UBS added to a recent run of strong corporate earnings.

Strong equities and currency revenues drove UBS's second-quarter net profit well above forecasts despite choppy market conditions and client money withdrawals fell to their lowest level since early 2008.

Even after allowing unlimited gold imports, Vietnam is likely to face supply shortages as the country also exported around 36 tons of the precious metal in the first six months of this year. According to Vietnam Gold Business Association there will be a shortage in gold supplies for production in Vietnam.

Gold prices showed positive trends in Asian trade Tuesday mainly on a firm euro in an otherwise thin market. Gold for immediate delivery was seen trading at $1184.88 an ounce at 12.00 noon Singapore while U.S. gold futures for August delivery was at $1,184.2 an ounce at the same time.

Asian stocks pulled back slightly from two-and-a-half month highs hit earlier on Tuesday after upbeat U.S. housing data, while the euro neared 2-month peaks on relief over stress tests on European banks.

Asian stocks rose to their highest in two and a half months on Tuesday, boosted by solid U.S. housing data, while the euro inched up toward two-month peaks on relief over stress tests on European banks.

Ask.com, the Internet search engine owned by IAC/InterActive Corp, is seeking some human help answering web surfers' questions.

State tax revenue is improving, but only slightly, and may not be enough to end steep spending cuts or replace the loss of assistance from the federal stimulus plan that expires in December, according to a report on Tuesday.

Oil steadied near $79 on Tuesday as forecasts see falling crude inventories and rising refined product stocks in the United States, continuing a trend that has helped keep prices in a $10 range for almost two months.

The euro ticked up toward a two-month peak above $1.3000 on Tuesday, although traders were cautious about bidding it up too much as they await clarity on Deutsche Bank's exposure to euro zone sovereign debt. Deutsche Bank has not revealed its exposure to euro zone sovereign debt following tests to see how well banks in the region would stand up to financial shocks.

Gold gained on Tuesday in a thin market driven by a firm euro and a technical rebound as prices briefly hit the 100-day moving average, while jewelry makers stayed on the sidelines after recent purchases. Investors are turning their attention to a series of U.S. data that may set the tone for prices, which have dipped more than 6 percent after surging to a record $1,264.90 in early June. Silver also firmed, while strong equities underpinned platinum.

With the diamond flow becoming tight in global markets, Surat's diamond polishing units are now awaiting roughs from Zimbabwe, which recently got a reprieve from the KP scheme, which allowed the country to sell a portion of its diamond stocks.

Global stocks rose on Monday after U.S. data showed a pick-up in new home sales, reviving hopes for improvement in a tepid economic recovery, while the euro firmed against the dollar on increased risk tolerance.

Bank of America Corp on Monday appointed a former colleague of Sallie Krawcheck as its Merrill Lynch global wealth management unit's new chief investment officer.

Legg Mason Inc reported on Monday its quarterly earnings decreased more than expected as expenses rose and investors pulled money out of many of its funds.