FEDERAL RESERVE

Gold prices dropped on Wednesday and were headed for their biggest two-day loss since the peak of the financial crisis, while the dollar rose as investors bet a speech by the Federal Reserve chairman later this week will not reveal any major central bank initiatives.

Central bankers and economists from around the globe will once again flock to the Federal Reserve's annual gathering in Wyoming this week, and once again will meet against the backdrop of volatile markets and the prospect of further Fed support for a struggling U.S. economy.

The U.S. Federal Reserve used a non-competitive bid process when it secured middlemen services to maintain liquidity in the critical money-market fund market -- an emergency action necessitated by the financial crisis triggered by the collapse of Lehman Brothers.

Gold bounced back on Wednesday after suffering its worst setback in 18 months, as risk appetite retreated on Japan's debt rating downgrade, while oil and metals were supported by hopes the U.S. would inject fresh stimulus to boost the economy.

Spot gold rebounded in Singapore overnight on Wednesday from its worst day in 18 months, while bullion's safe-haven appeal seemed to be waning for now with investors returning to riskier assets on hopes of more stimulus for the U.S. economy.

U.S. shares were set to fall Wednesday, giving up some of the hefty gains of the previous session, which were based on hopes that Federal Reserve Chairman Ben Bernanke will announce measures to stimulate the economy

Beverage firms led Europe's top shares lower Wednesday, as mixed corporate results and cooling hopes over the prospect of further economic stimulus in the U.S. saw the recent rebound lose steam.

World stocks fell on Wednesday as European investors shuffled positions ahead of a Jackson Hole speech by Federal Reserve Chairman Ben Bernanke and Japanese shares sold off following a Moody's downgrade.

The Group of 20 leading and emerging nations has not done enough to correct global imbalances, and this could provoke more financial instability, a top Bank of Canada official said Wednesday.

Brent crude prices steadied above $109 Wednesday as investors pinned their hopes on the U.S. Federal Reserve to inject fresh stimulus to boost the world's largest economy.

Asian shares fell Wednesday as a rally fueled by speculation that the Federal Reserve may further shore up the struggling U.S. economy swiftly petered out, while gold rebounded from its sharpest one-day slide in 18 months.

Several major banks cut sharply their oil price forecasts on Tuesday, with Citigroup saying that even if the United States printed more money, oil would stay depressed by weak economic growth and fresh supplies from Libya.

Asian shares rose on Wednesday as speculation the Federal Reserve may signal further moves to support the struggling U.S. economy sustained a modest rebound from this month's sharp sell-off.

You can’t blame investors for feeling slightly queasy about the U.S. stock market these days. One day of relatively positive data points is followed by a day with enough bad news to keep a stock investor up at night. But based on a condensed, cross-methodological analysis, in which direction is the Dow likely to head in the next six months?

China should diversify its huge foreign exchange reserves into non-financial assets to hedge against risks from a long-term decline in the U.S. dollar, Xia Bin, an academic adviser to the central bank said on Tuesday.

Gold prices retreated in choppy trade on Tuesday after earlier hitting record highs as a recovery in appetite for assets seen as higher risk, such as stocks, took the steam out of a rally that many saw as overdone above $1,900 an ounce.

Stocks shot three percent higher on Tuesday on speculation Federal Reserve Chairman Ben Bernanke this week would signal new help for the economy, giving investors hope a four-week rout was nearing an end.

Gold prices were falling steadily late Tuesday in electronic trading as investors took profit from recent gains and bought stocks in expectations that the Federal Reserve will intervene in the bond market to give the anemic U.S. economy a lift.

Stocks gained 1 percent on Tuesday as stronger-than-expected data from overseas sparked buying before a keenly awaited speech by Federal Reserve Chairman Ben Bernanke this week.

Gold prices retreated more than 1 percent from record highs on Tuesday as a recovery in appetite for assets seen as higher risk, such as stocks, took the steam out of a rally that many saw as overdone above $1,900 an ounce.

You can’t blame investors for feeling slightly queasy about the U.S. stock market these days. One day of relatively positive data points is followed by a day with enough bad news to keep a stock investor up at night. But based on a condensed, cross-methodological analysis, in which direction is the Dow likely to head in the next six months?