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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: oilbabe who wrote (52625)	10/8/1999 10:04:00 AM
From: Fitz	Respond to of 95453

October 8, 1999 9:15am Source: Reuters (Updates after U.S. data) By Richard Baum LONDON, Oct 8 (Reuters) - European stocks and bonds eased and the dollar held steady after a surprisingly strong rise in U.S. wages overshadowed an unexpected decline in U.S. employment data, leaving open the chances of a Federal Reserve rate rise in November. Oil shares were the biggest losers as crude prices dived more than six percent on doubts that OPEC members would stick to output curbs. U.S. stocks looked set for a difficult start after the data, which showed nonfarm employment fell by 8,000 in September against expectations of a rise of 218,000. Traders quickly turned their attention to less encouraging news of a 0.5 percent rise in wages, which topped forecasts of 0.3 percent and fanned uncertainty over the Fed's next move. ``It makes a Fed move in November less likely, but it doesn't take it off the table,' said David Orr, Chief capital markets economist at First Union Corp. The dollar held at its strongest level against the euro this month after the data, boosted also by the European Central Bank's decision on Thursday to keep interest rates unchanged. After briefly rising on the fall in payrolls, European share indices fell back on the wages data to the negative levels held for most of the day. London's FTSE 100 .FTSE) was down 0.1 percent, the Paris CAC-40 .CAC) fell 0.9 percent and the Xetra DAX .GDAXI) in Frankfurt lost 0.6 percent. The FTSE Eurotop 300 .FTEU3) of leading European shares was almost unchanged. S&P stock index futures on Globex, an indicator of how U.S. shares will trade, were also flat. OIL DIVES The oil sector was among the biggest losers as the benchmark Brent crude oil future slumped $1.38 a barrel to $20.70, extending losses triggered by a Reuters survey on Wednesday that showed OPEC compliance with output curbs slackened in September. The survey showed adherence by OPEC members taking part in supply restrictions, excluding Iraq, fell to 81 percent in September from 84 percent in August. Oil prices have fallen 15 percent since hitting a 33-month high last Thursday. The FTSE Eurotop oil index .FTEUOIECR fell 2.3 percent, led by a three percent fall in BP Amoco. The U.S. payroll figures were under even closer scrutiny than usual, because they were the first major economic data to be reported since the Federal Reserve left interest rates unchanged on Tuesday but indicated it was inclined to tighten monetary policy. TREASURIES STEADY U.S. Treasuries were little changed after the data, with the yield on the 30-year bond US30YT-RR steady at 6.18 percent. European government bonds 0#EUROCOMP were also flat. The Bund future FGBLc1) fell 0.01 point to 104.96. Traders said the euro bond market will continue to re-evaluate its interest rate outlook in the aftermath of the ECB's decision to leave interest rates unchanged and comments by ECB officials afterwards. ECB President Wim Duisenberg said Thursday a ``tightening bias' was still creeping in but that more evidence was needed to judge whether to move on rates. The euro was trading around $1.0666, compared with a two-month peak of $1.0778 hit on Wednesday and $1.0733 late in European trade on Thursday. The dollar was at 107.47 yen, off an overnight high around 108 yen and compared with 107.615 yen late in Europe on Thursday. ------------------------------------------------------------ MARKETS AT 1314 GMT CURRENCIES (figure in brackets previous London close) $/Euro 1.0665 euros (1.0733) $/Yen 107.575 yen (107.615) STOCK MARKETS LONDON - FTSE 100: 6197.5 points, down 2.9 or 0.05 percent FRANKFURT - DAX-30: 5406.34 points, down 12.97 or 0.24 percent PARIS - CAC-40: 4720.76 points, down 21.5 or 0.45 percent PRECIOUS METALS (figures in brackets previous London PM fix) GOLD - $321 ($322.75) SILVER - $5.535 ($5.58) Brent crude oil futures $20.67, down $1.41 ------------------------------------------------------------