MARKETS / FINANCE

Bank of China said its bid to raise up to $8.9 billion should give it enough capital for the next three years, seeking to assure markets its second major fund-raising this year will mend its stretched balance sheet for the foreseeable future.

World equities fell for the fourth day running on Monday and the dollar traded close to two-month lows on growing concerns of slowdowns in the United States and China -- the two main pillars of global growth.

Oil edged higher above $72 a barrel on Monday, rebounding from a 3-week low, but gains were capped by lingering concerns over slowing global economies and future demand for fuel. U.S. crude for August climbed as much as 56 cents to $72.70 a barrel on Monday and was up 27 cents at $72.41 by 4:50 a.m. ET.

Oil major BP Plc is seeking a strategic investor to secure its independence in the face of any takeover attempts as it struggles with a devastating oil leak in the Gulf of Mexico, newspapers said on Sunday.

Asian stocks inched higher on Monday, with investors taking profits on defensive plays and buying back other beaten down shares, though selling could resume shortly as the U.S. and Chinese economies are slowing in tandem.

Global services growth geared down a notch in June, data showed on Monday, supporting the view in financial markets that emerging and developed economies are set to cool off through the second half of the year.

TPG and Goldman Sachs's private equity arm are close to a deal to buy Ontex, the European private-label diaper maker, from buyout firm Candover for 1.2 billion euros ($1.5 billion) or more, people familiar with the matter said.

Gold ticked up on Monday after a drop in the U.S. dollar spurred bargain hunting, with firmer stock markets helping investors shrug off a slight decline in ETF holdings. Jewellers were on the sidelines after buying heavily on Friday, when bullion fell to a five-week low. With U.S. investors away for a holiday, the metal was likely to trade in a tight range of $1,210 to $1,215 an ounce.

Asian stocks edged up on Monday, with investors taking profits on defensive plays and buying back other beaten down shares, though selling could resume shortly as the U.S. and Chinese economies are slowing in tandem.

Oil rebounded from three-week lows on Monday, staying above $72 as the market assessed the implications of a slowing global economic recovery on energy use. Rising stock markets in Asia prompted participants to cover short positions in a trading session where volumes were expected to be thin because of the U.S. Independence Day holiday.

Only China's yuan could rank with the dollar and euro as pillars of the global monetary system, given time and five key tests, Hong Kong's former Monetary Authority chief Joseph Yam was quoted as saying.

Hedge fund managers feel they aren't out of the woods quite yet.

The Australian Dollar has opened up in the high 0.8300's this morning after struggling on Friday evening's trade to fall short of 0.8500, following the new Prime Minister Julia Gillard announcement of a compromise position on the RSPT (Resource Super Profits Tax) which became the MRRT (Mineral Resource Rent Tax).

The Australian Dollar has failed to hang onto the gains made last Friday following the announcement by the Australian Government of a resolution to the resource super profits tax issue.

Central banks may be the only remaining line of defense against a scary-but-remote double-dip recession threat.

Germany plans to cut net new borrowing by some 80 billion euros ($100 billion) over five years, reducing supply of Europe's benchmark debt and adding pressure on other euro zone members to tighten their own public finances.

Bearish bets in the equity options market, coupled with an increasingly sour view from a technical perspective, suggest stocks will struggle to break from a vicious two-month downtrend this week.

Only China's yuan could rank with the dollar and euro as pillars of the global monetary system, given time and five key tests, Hong Kong's former Monetary Authority chief Joseph Yam was quoted as saying.

Budget cuts and structural reforms will help cement economic recovery, while bank stress tests will help restore confidence, European Central Bank President Jean-Claude Trichet said on Sunday.

Euro zone growth in 2010 could be closer to zero after a volatile second quarter threatens to dash previous estimates of 1 percent, U.S. economist Nouriel Roubini said on Sunday.

European Central Bank President Jean-Claude Trichet said on Sunday he did not believe Europe was facing recession and renewed his support for reforms and deficit cuts to boost confidence.

The result of tests designed to show that Europe's banks are able to cope with further economic and other shocks will be published on July 23, French Economy Minister Christine Lagarde said on Sunday.

Troubled oil giant BP could get a reprieve from Middle East financial institutions looking to make a strategic investment in the company, a UAE-based newspaper reported on Sunday, citing informed sources.

An International Monetary Fund mission said on Saturday it had agreed to recommend a loan of $14.9 billion for Ukraine in a deal to help fill the country's budget gap and boost investor confidence.

Ukraine came closer on Saturday to winning a bailout from the International Monetary Fund as an IMF mission said it would recommend lending $14.9 billion in a deal to help fill Ukraine's budget gap and boost investor confidence.

European regulators oppose including a sovereign default scenario in stress tests they are conducting on banks, German magazine Der Spiegel reported on Saturday.

U.S. private payrolls rose only modestly in June and overall employment fell for the first time this year as thousands of temporary census jobs ended, indicating the economic recovery is failing to pick up steam.

General Motors Co plans to file its nearly $20 billion initial public offering in mid-August, a source familiar with the situation said Friday, later than some expected as bankers work to help sort out the automaker's finances post-bankruptcy.

A Chicago federal judge has authorized American International Group Inc to pursue a lawsuit accusing rival insurers of illegally conspiring to cause it harm in the workers' compensation market.