Australia & New Zealand Daybook: RBA's Battellino Speaks, Murray-Darling

An overview of activity since markets closed in Sydney and a preview of the day ahead.

---------------------Markets Overview----------------------- EQUITIES

SPI 200 FUTURES 4685 -16 S&P/ASX 200 4691.30 +4.50 NZX 50 INDEX 3236.08 +1.04 DOW JONES INDUS. AVG 10942.26 -25.39 NIKKEI 225 9684.81 -6.62 NASDAQ COMPOSITE INDEX 2383.05 +2.39 FTSE 100 INDEX 5662.13 -19.26 S&P 500 INDEX 1157.11 -2.86 HANG SENG INDEX 22884.32 +3.91 REUTERS/JEFFERIES CRB INDEX 287.30 -1.85

BONDS (YIELD)

AU 10 YR BOND 5.054 +.046 US 10 YR BOND 2.39 -.01 NZ 10 YR BOND 5.132 +.085 US 30 YR BOND 3.71 +.04

CURRENCIES

AUD/USD 0.9815 NZD/USD 0.7496 EUR/USD 1.3912 JPY/USD 82.39 AUD/EUR 0.7055 GBP/AUD 1.6167 AUD/JPY 80.86

COMMODITIES

SPOT GOLD 1334.80 -14.25 COMEX GOLD 1336.80 -10.90 SPOT SILVER 22.5863 -.5932 NYMEX CRUDE 81.50 -1.73 ---------------------------------------------------------------

Market action since Sydney’s end of day:

EQUITIES

New York: U.S. stocks declined, sending the Standard & Poor’s 500 Index down for a second day, as slumping commodity prices overshadowed a drop in jobless claims. *The S&P 500 slipped 0.3 percent to 1,156.74 at 12:08 p.m. in New York after earlier climbing as much as 0.3 percent. *The Dow lost 27.89 points, or 0.3 percent, to 10,939.76. *Exxon Mobil Corp. and Freeport-McMoRan Copper & Gold Inc. paced losses in commodity producers.

London: European stocks closed little changed as a record drop in U.K. house prices offset an unexpected decrease in initial claims for U.S. jobless benefits. *The Stoxx Europe 600 Index slipped less than 0.1 percent to 262.31 at the 4:30 p.m. close in London. *The FTSE 100 Index dropped 19.26, or 0.3 percent, to 5,662.13 at the 4:30 p.m. close in London.

Tokyo: Japan’s Topix index climbed, led by banks and retailers, on expectations monetary easing by the Bank of Japan will boost domestic demand. Electronics makers dropped as the yen strengthened. *The Topix index rose 0.2 percent to 846.06 at the close in Tokyo. *The Nikkei 225 Stock Average slid less than 0.1 percent to 9,684.81.

Sydney/Wellington: Australia’s S&P/ASX 200 Index gained 0.1 percent to 4,691.30 at the 4:10 p.m. close of trading in Sydney. New Zealand’s NZX 50 Index was little changed at 3,236.08 at the 5 p.m. close in Wellington.

FOREIGN EXCHANGE

New York: The dollar fell to the lowest level since 1995 against the yen on speculation the Federal Reserve will debase the currency by stepping up purchases of government debt to support the economic recovery. *The dollar fell 0.7 percent to 82.36 yen at 3:05 p.m. in New York, from 82.93 yesterday. *The euro traded at $1.3919, compared with $1.3930, after touching $1.4029, the highest since Jan. 28. *Australia’s dollar surged to a record versus its U.S. counterpart and neared parity as employers added the most jobs in eight months. *Australia’s currency rose to 97.88 U.S. cents at 12:35 p.m. in New York, from 97.75 yesterday. It earlier touched 99.18.

TREASURIES

New York: Yields on 30-year Treasuries rose to their highest since June relative to bonds that protect against faster inflation as investors step up bets that the Federal Reserve will be successful in sparking consumer prices as it prints money to bolster the economic recovery. *The yield on the 30-year bond rose 3 basis points, or 0.03 percentage point, to 3.7 percent at 2:36 p.m. in New York, according to BGCantor Market Data.

COMMODITIES

New York: Gold futures fell from a record as some investors sold the precious metal on speculation that the rally was overdone. *Gold futures for December delivery fell $11.30, or 0.8 percent, to $1,336.40 an ounce at 11:35 a.m. on the Comex in New York.

METALS

New York: Copper prices fell the most in 11 weeks on concern that this week’s rally to a 27-month high was overdone. *Copper futures for December delivery fell 7.35 cents, or 2 percent, to close at $3.6795 at 1:23 p.m. on the Comex in New York.

OIL

New York: Crude oil tumbled from a five-month high after the dollar rebounded versus the euro and U.S. equities declined, wiping out an early advance. *Crude oil for November delivery fell $1.56, or 1.9 percent, to $81.67 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange.

WHAT TO WATCH: *Reserve Bank of Australia Deputy Governor Ric Battellino delivers speech in Brisbane. *Murray-Darling Basin Authority to release report on river system.

BLOOMBERG TV: Selected guests (Sydney time) *1:10 p.m. Stephen Schwartz, chief economist for Asia at Banco Bilbao Vizcaya Argentaria SA. *1:40 p.m. Muliaman Hadad, deputy governor, Bank Indonesia.

To contact the editor responsible for this story: Iain Wilson at iwilson2@bloomberg.net

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