Gold hits record high in Libyan flight for safety problems

Muammar Gaddafi launched an offensive to regain the territory in the East of the Libya on Wednesday. Photo: AFP

Violence in the region cooled appetite for assets considered as high risk, such as shares and led so-called refuge as the obligations of the German Government, the Swiss franc and gold.

Stock markets fell in Asia, Europe, the Middle East and America as spot gold hit $1,436.40 and West Texas crude for reference for April delivery rose to $more in New York. Brent crude in London has increased in the direction of $116 per barrel.

Rising oil, prices are set in support of gold, analysts said, if they look likely to slow global growth.

However relies on a rise of FP6 in February, its biggest rise one month since August. This came on the back of unrest that unseated leaders in Tunisia and Egypt before extend to the Libya, Bahrain, the Yemen and Oman.

"[Y] a combination of reasons of [ascension in] gold, but primary currently are strong oil and weak equities - essentially geopolitical," said Simon weeks, head of precious metals in the Bank of Nova Scotia.

"I think that we see $1,450, and it is probably enough," he said. "Any good news from the Middle East will be a withdrawal to $1,400.

Muammar Gaddafi has launched an offensive to regain the territory in the East of the Libya on Wednesday, triggering a rebel warning that foreign armed forces may be needed to "put the nail in the coffin" and put end to his long reign.

The United States sent to the Libya, ships of war and Secretary of State Hillary Clinton said that the country and its NATO allies are looks still a "no - fly" zone, on the Libya although Western States seem reluctant to stage an intervention.

In opening remarks at a meeting of the Ministers for Foreign Affairs Arab in Cairo on Wednesday, Foreign Minister Hoshiyar Zebari said Iraqi the Libya crisis is an internal affair of the Arabs and foreign powers must refrain from any intervention.

Silver rose to a peak of $34.87 ounces, its strongest level since the early 1980s, before edging back to $34.81 the ounce against $34.66.

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We studied the flight ahead of the release of oil stocks

The second day of dramatic oil prices falling following global energy watchdog decision to release an additional 60 million barrels of oil on the market.

The Commodity Futures Trading Commission (CFTC), which is based in Washington, DC, is reported to the review of business models potentially unusual on the oil futures market until the decision was made public Thursday.

A spokesman for the CFTC has refused to comment on.

Relocation of IEA to release 60 million barrels of oil led to an immediate liquidation Thursday, with oil fell $ 5. The price has dropped another $4 per barrel in London yesterday on concerns over the stability of the euro area and the economic health of the world.

Oil and other commodities also came under pressure increase in the dollar against the euro, driven by concerns that the Parliament of the Greece cannot pass of austerity measures which will publish an international bailout.

One of the effects of the release of stocks of emergency reserves was to reduce the gap between New York and London reference price oil futures.

Brent crude was much more expensive than West Texas Intermediate (WTI) for months, reaching a peak of $23 above the benchmark of U.S. this month. The difference is now about 15 dollars per barrel.

James Zhang, analyst of Standard Bank, said: "an increase in crude supplies of water origin of the United States is likely to see Brent/WTI spread narrow, and it is also likely to buffer refining margins."

"In Europe, an important part of the release of the reserve will be produced oil, given the way in which the oil reserves special is managed in Europe." As the oil product market is already fairly low in Europe, the release could lead product cracks even lower in the short term. »

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Irish bank flight quickens despite EU rescue

Irish central bank data showed losses of €40bn (£34bn) in deposits from the key banks in December, compared with €27bn a month earlier. Over the past year Irish lenders have haemorrhaged €110bn, equal to 60pc of gross national product. "Would I want to leave money in an institution where I don't know who is making the rules?" said Gary Jenkins from Evolution Securities.

On Wednesday, Standard & Poor's cut Ireland's sovereign rating one notch to A-, citing a "weaker economic outlook, reduced prospects for bank earnings and funding difficulties of domestic banks". It also downgraded Bank of Ireland, Allied Irish, Anglo Irish and Irish Life, questioning "both the ability and willingness of the Irish government" to keep propping up lenders. The quartet remain "highly reliant on central bank funding" and have been unable to raise market funds despite state guarantees.

Investors are watching warily as Ireland prepares for an election on February 25. Leading opposition party Fine Gael said it will unpick parts of the EU-IMF bail-out for Ireland, threatening to "impose losses on bondholders who lent to collapsed domestic banks".

"Those who lent recklessly as well as those who borrowed recklessly should share the burden," said Michael Noonan, the party's finance chief. He exhorted the EU to cut the interest rate on rescue loans from 5.8pc to levels nearer the EU's borrowing cost of 2.6pc

Fine Gael is likely to form a coalition with Ireland's Labour Party, which is even tougher on creditors. All major parties are losing votes to Gerry Adam's Sinn Fein as it taps popular fury with calls for the IMF "to go home and take their money with them".

It is unclear whether EU leaders will agree on changes to the size and scope of €440bn bail-out fund (EFSF) this week. German officials say they will prevent the fund carrying out "soft debt restructuring" for Greece and other stricken states by lending them money to buy back their own bonds cheaply on the open market.

Yet, German and EU officials are working quietly on a formula that would allow the EFSF to lend its full headline figure of €440bn rather than just €250bn under current rules needed to anchor its AAA rating. This is easier said than done. It might compel Italy, Belgium, Spain and other non-AAA states to put up more money they can ill-afford. Critics in the City already view the EFSF bonds as akin to "CDOs", of sub-prime infamy. Any tinkering with the mechanism would be watched with a jaundiced eye.

Diplomats say Germany is dragging its feet on the EFSF in to extract concessions from debtor states on budgets, labour rules and pension reform. What Berlin means by a "eurozone economic government" is not a debt union or fiscal transfers but a mechanism for enforcing discipline. This treads on very sensitive sovereign toes in Rome, Madrid or even Paris.

Chancellor Angela Merkel's coalition faces regional elections in coming weeks and fears that the German people will baulk at further loan packages unless spendthrift states are seen to suffer hairshirt treatment.

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Irish bank flight quickens despite EU rescue

Irish central bank data showed losses of €40bn (£34bn) in deposits from the key banks in December, compared with €27bn a month earlier. Over the past year Irish lenders have haemorrhaged €110bn, equal to 60pc of gross national product. "Would I want to leave money in an institution where I don't know who is making the rules?" said Gary Jenkins from Evolution Securities.

On Wednesday, Standard & Poor's cut Ireland's sovereign rating one notch to A-, citing a "weaker economic outlook, reduced prospects for bank earnings and funding difficulties of domestic banks". It also downgraded Bank of Ireland, Allied Irish, Anglo Irish and Irish Life, questioning "both the ability and willingness of the Irish government" to keep propping up lenders. The quartet remain "highly reliant on central bank funding" and have been unable to raise market funds despite state guarantees.

Investors are watching warily as Ireland prepares for an election on February 25. Leading opposition party Fine Gael said it will unpick parts of the EU-IMF bail-out for Ireland, threatening to "impose losses on bondholders who lent to collapsed domestic banks".

"Those who lent recklessly as well as those who borrowed recklessly should share the burden," said Michael Noonan, the party's finance chief. He exhorted the EU to cut the interest rate on rescue loans from 5.8pc to levels nearer the EU's borrowing cost of 2.6pc

Fine Gael is likely to form a coalition with Ireland's Labour Party, which is even tougher on creditors. All major parties are losing votes to Gerry Adam's Sinn Fein as it taps popular fury with calls for the IMF "to go home and take their money with them".

It is unclear whether EU leaders will agree on changes to the size and scope of €440bn bail-out fund (EFSF) this week. German officials say they will prevent the fund carrying out "soft debt restructuring" for Greece and other stricken states by lending them money to buy back their own bonds cheaply on the open market.

Yet, German and EU officials are working quietly on a formula that would allow the EFSF to lend its full headline figure of €440bn rather than just €250bn under current rules needed to anchor its AAA rating. This is easier said than done. It might compel Italy, Belgium, Spain and other non-AAA states to put up more money they can ill-afford. Critics in the City already view the EFSF bonds as akin to "CDOs", of sub-prime infamy. Any tinkering with the mechanism would be watched with a jaundiced eye.

Diplomats say Germany is dragging its feet on the EFSF in to extract concessions from debtor states on budgets, labour rules and pension reform. What Berlin means by a "eurozone economic government" is not a debt union or fiscal transfers but a mechanism for enforcing discipline. This treads on very sensitive sovereign toes in Rome, Madrid or even Paris.

Chancellor Angela Merkel's coalition faces regional elections in coming weeks and fears that the German people will baulk at further loan packages unless spendthrift states are seen to suffer hairshirt treatment.

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US bonds jump Japan flight.

Government bonds benefited after that investors dumped shares in Asia. Photo: EPA

At one point future Nikkei plunged 16pc, dragging the future S & P down 3pc. However, the actions Japanese pared losses slightly in the afternoon, the short-covering after the authorities banned the houses of titles from the sale of stocks for commercial arbitration.

Traders in Tokyo and Hong Kong said hedge fund selling of future Nikkei, including the contracts listed in Singapore, were behind some falling deeper Japanese shares.

Volumes of cash on the first section of the Tokyo Stock Exchange hit a record for a second day running.

The situation was tense in Tokyo as Japanese leaders sought to calm the citizens, and investors panic as the spread of the news of a rise in "significant" radiation at the nuclear facility of Fukushima and the news agency Kyodo reported increase in radiation in more communities close to Tokyo.

In a turbulent and volatile day on the markets, Japanese Government bonds was also abandoned the gains and sliding, taking some steam out of the gains in Treasury bills.

Traders cited by insurers to offset losses on their equity portfolios in sales. The Nikkei fell 10 FP6 the day and was down 16pc so far this week, suffer the greatest bond of two days since the 1987 crash.

Frenetic buying of bonds on the day has also prompted Australian money markets price in a chance in the third of the Central Bank could reverse and beginning courses reduce the rate of interest, as soon as next month.

Volume of futures contracts was much larger than usual in Asia in exchange for hours, with much more than 260 000 a small trade the Asian day - more than triple the volume of the previous day.

10 Years of reference yields have increased by almost one full point in price to yield 3 274pc, down 9 basis points (bps) the day after falling as 3 207pc.

Note two-year yields were down 6 bps to 0 545pc, with the slightly the day flattening yield curve.

Investors warn potential Japanese insurer or business selling Treasury bonds to repatriate funds to cover the cost of the earthquake and the tsunami.

But until this traders have not identified any repatriation of major Japanese investor, noting that may take a few weeks to evaluate the full tally.

The US Federal Reserve meets later Tuesday and is expected to continue unchanged policy while assessing the steep impact of oil prices and the Japanese crisis.

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