U.S. Treasuries Are Little Changed on Growth Concern as Stocks Decline

(Bloomberg) -- Treasuries were little changed as
global stocks fell and speculation increased that losses tied to
subprime mortgages will slow economic growth.

Ten-year notes may extend their gains into a fifth week
after the risk of owning corporate bonds rose and a report showed
employers added fewer jobs than expected last month. Investors
increased bets the Federal Reserve will cut interest rates as
soon as October.


Read more at Bloomberg Bonds News

Credit, growth fears batter stocks, hit dollar

(Reuters) - European shares opened more than 1 percent lower before recovering slightly. Emerging market shares dropped around 1.8 percent and Japanese equities slipped 0.4 percent.




Heightened concerns for economic growth as a result of credit problems also knocked oil prices, which briefly dipped below $74.50, and dragged Shanghai copper futures down 3 percent.


Read more at Reuters.com Business News

Dollar Falls to Four-Month Low Against Yen on Concerns About U.S. Growth

(Bloomberg) -- The dollar fell to a four-month low
against the yen on signs losses related to subprime mortgages
are starting to slow U.S. economic growth.

The dollar also traded near a record low against the euro
after the yield spread between U.S. and German two-year bonds
narrowed to the least in 2 1/2 years. The Standard & Poor's 500
Index slid the most in five months and two-year Treasury yields
dropped to an 18-month low Aug. 3 as reports on employment and
services suggested housing market weakness is causing economic
growth to slow.


Read more at Bloomberg Currencies News

Fed's Bernanke May Alter Rhetoric, Not Interest Rates After Market Turmoil

(Bloomberg) -- Federal Reserve Chairman Ben S.
Bernanke may respond to the latest squall in financial markets
the same way he did when turbulence hit four months ago: with a
change in words rather than policy.

Bernanke and his colleagues may suggest after their
meeting tomorrow that the risks to economic growth have
increased following the rout in stock and credit markets -- just
as they did after their March meeting.


Read more at Bloomberg Currencies News

Crude Oil Falls on Concern U.S. Economic Growth, Energy Demand Will Slow

(Bloomberg) -- Crude oil fell more than $1 a barrel
after a government employment report prompted concern that U.S.
economic growth will slow, reducing demand for gasoline and other
fuels.

Job growth slowed to 92,000 in July from 126,000 the prior
month, the Labor Department said today in Washington. The jobless
rate rose to 4.6 percent. Economic growth in the U.S. and China
has helped spur the rise in energy demand and fuel prices.
Gasoline, diesel and heating-oil inventories rose last week, a
government report showed on Aug. 1.


Read more at Bloomberg Energy News

UPDATE 3-U.S. foreclosures jump, trending higher-RealtyTrac

(Reuters) - Foreclosure filings in the first half spiked from the same
period last year to 925,986 as many overstretched borrowers
have been caught between rising interest rates and falling home
prices. The Federal Reserve has cited the faltering housing
market as the biggest risk to economic growth.




The foreclosure filings were also up more than 30 percent
from the previous six-month period, at a rate of one filing for
every 134 U.S. households, said RealtyTrac, an online
marketplace for foreclosure properties.


Read more at Reuters.com Economic News

Europe Government Bonds Slide on Speculation ECB to Indicate Higher Rates

(Bloomberg) -- European bonds fell on speculation
the European Central Bank will this week reiterate its preference
for higher interest rates as economic growth in the region
maintains momentum.

Ten-year German bunds, Europe's benchmark, declined for the
first day in five on speculation policy makers will leave rates
at a six-year high of 4 percent at their Aug. 3 meeting and
signal increases are likely by year-end. Debt also slid on views
the longest weekly rally since March last week drove yields too
low for the outlook for borrowing costs.


Read more at Bloomberg Bonds News

Gold, Silver Little Changed After Drop on Concern Global Growth May Slow

(Bloomberg) -- Gold was little changed in Asia after
the biggest weekly decline in almost two months on concern that
global economic growth may slow, reducing the metal's appeal as a
hedge against inflation. Silver was also little changed.

Gold fell 3.3 percent last week amid a $2.1 trillion world
stock market rout and concern that U.S. subprime mortgage losses
may slow economic growth, reducing inflation. Investors usually
buy gold at time of rising raw material prices to preserve wealth.


Read more at Bloomberg Commodities News

Japan Stocks Fall on U.S. Subprime Concern, Ruling Party's Election Defeat

(Bloomberg) -- Japanese stocks dropped after a
report on economic growth in the U.S. showed residential
investment slumping as the subprime problem worsens, pointing to
a weaker outlook for Japan's largest overseas market.

Toyota Motor Corp. and Canon Inc. led exporters lower after
the yen advanced to the highest against the dollar in more than
three months, reducing the value of their overseas sales.


Read more at Bloomberg Stocks News

Japan's Stocks May Drop on U.S. Subprime Concern, Stronger Yen, LDP Defeat

(Bloomberg) -- Japanese stocks may drop after a
report on economic growth in the U.S. showed residential
investment slumping as the subprime problem worsens, pointing to a
weaker outlook for Japan's largest overseas market.

Toyota Motor Corp. and Sony Corp. may lead exporters lower
after the yen advanced to the highest against the dollar in more
than three months, reducing the value of their overseas sales.


Read more at Bloomberg Stocks News

US STOCKS-Indexes flat after GDP, Treasury's Paulson

(Reuters) - NEW YORK, July 27 - U.S. stocks were little
changed on Friday, erasing small gains in a skittish session
after a government report that showed a stronger-than-expected
pace of economic growth in the second quarter.




Comments by Treasury Secretary Henry Paulson briefly lent
some support, but the underlying tone on Wall Street remained
nervous, a day after equities suffered their second worst
decline of the year.


Read more at Reuters.com Bonds News

US STOCKS-Indexes fall on persistent credit worries

(Reuters) - NEW YORK, July 27 - U.S. stocks fell on Friday as
persistent concern about financing for corporate takeovers amid
a broadening deterioration in credit markets offset positive
data on economic growth.




Comments by Treasury Secretary Henry Paulson briefly lent
some support, but the underlying tone on Wall Street remained
nervous, a day after equities suffered their second worst
decline of the year.


Read more at Reuters.com Bonds News

Bush says economy strong, resilient

(Reuters) - Bush called the U.S. economy "large, flexible and resilient" and said it has benefited from increased exports, particularly by farmers.




The Commerce Department reported that U.S. economic growth rebounded during the second quarter to its strongest pace since the beginning of last year.


Read more at Reuters.com Bonds News

Mexican stocks, peso fall on U.S. economy worries

(Reuters) - The IPC index of leading shares slumped to 30,482
points and the peso dropped 0.74 percent to 10.950 per dollar.




U.S. existing-home sales fell more than expected in June,
increasing worries this week about U.S. economic growth. The
United States buys nearly 90 percent of Mexican exports.


Read more at Reuters.com Bonds News

Turkish Stocks Jump After Elections, Led by Banks: World's Biggest Mover

(Bloomberg) -- Turkey's benchmark stock index was
headed for the biggest one-day gain this year after voters re-
elected Prime Minister Recep Tayyip Erdogan, giving him the go-
ahead for European Union membership talks and policies that have
resulted in five years of economic growth.

Akbank TAS and Turkiye Garanti Bankasi AS, among the
nation's biggest banks, paced the advance.


Read more at Bloomberg Stocks News

Turkish Markets May Rally After Erdogan's Justice Party Wins Re-Election

(Bloomberg) -- Turkish stocks, bonds and the lira
may gain after voters re-elected Prime Minister Recep Tayyip
Erdogan, giving him a mandate to extend policies that won Turkey
European Union membership talks and helped bring 21 straight
quarters of economic growth.

Erdogan's Justice and Development Party took 47 percent of
the vote with almost all ballots counted at 1 a.m. in the
capital Ankara, according to the state-run Anatolia News Agency.
That's likely to give the party 342 lawmakers in the 550-seat
parliament, CNN Turk television said.


Read more at Bloomberg Currencies News

Pound Advances to 26-Year High Versus Dollar on GDP Report, Rates Outlook

(Bloomberg) -- The pound rose to a 26-year high
against the dollar after a report showed U.K. economic growth
unexpectedly quickened in the second quarter, stoking
expectations of higher interest rates.

The U.K. currency headed for its longest rally in more than
a year on speculation the Bank of England will raise rates half a
percentage point from 5.75 percent by year-end while the Federal
Reserve stays on hold. The pound also advanced as the Fed trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.


Read more at Bloomberg Currencies News

Treasury 10-Year Note Yield Falls Below 5 Percent on Subprime Loan Crisis

(Bloomberg) -- Treasuries rose, pushing the
benchmark 10-year note's yield below 5 percent, on speculation
rising subprime mortgage defaults will lead to higher lending
costs for private borrowers and curb economic growth.

Ten-year notes headed for their second straight weekly gain
as gauges of investor appetite for credit risk fell. Federal
Reserve Chairman Ben S. Bernanke told Congress this week that
conditions in the subprime mortgage market ``have deteriorated
significantly.''


Read more at Bloomberg Bonds News

Pound Heads for Sixth Weekly Gain After GDP Report Stokes Rate Expectation

(Bloomberg) -- The pound headed for its longest
rally versus the dollar in more than a year after a report showed
U.K. economic growth unexpectedly quickened in the second
quarter, stoking expectations of higher interest rates.

The U.K. currency rose to a 26-year high this week on
speculation the Bank of England will raise rates half a
percentage point from 5.75 percent by year-end while the Federal
Reserve stays on hold. The pound also advanced as the Fed trimmed
its forecast for economic growth and Bear Stearns Cos. reported
losses on hedge funds that bet on bonds backed by subprime loans.


Read more at Bloomberg Currencies News

Yen Declines as Company Profit Outlook, Equities Spur Carry Trades

(Bloomberg) -- The yen fell on speculation profit
growth will support stock prices, prompting investors to borrow
in Japan and buy equities elsewhere.

The yen slid against all 16 most-active currencies this week
as investors added to so-called carry trades, taking advantage of
Japan's interest rate, the lowest among industrialized nations.
The Japanese currency also dropped after China raised rates to
cool economic growth, prompting speculation demand for Japanese
exports in its third-largest market will slow.


Read more at Bloomberg Currencies News