U.S. economic recession "very likely over": Bernanke

2009-09-16 00:32:41  

    WASHINGTON, Sept. 15 (Xinhua) -- U.S. Federal Reserve Chairman Ben Bernanke said Tuesday that the country's economic recession is very likely over at this point.

    More and more data showed that the world largest economy is pulling out of the worst recession since the 1930s. Bernanke admitted that in responding to questions at the Washington based think-tank Brookings Institution.

    The central bank chief also expressed his confidence that the Congress will enact a revamp of the nation's financial rule book to prevent future crisis from happening.

    "I feel quite confident that a comprehensive reform will be forthcoming," Bernanke said.

    In a speech delivered Monday in New York to rethink the one year anniversary of the collapse of Lehman Brothers, President Barack Obama urged the Congress to enact legislation this year.

    U.S. Treasury Secretary Tim Geither also said recently that it is essential that the financial overhaul should be implemented to avoid future crisis. 

Editor: Mu Xuequan

Dow Jones average hits 9,700 on positive economic data

2009-09-16 05:52:37  

    NEW YORK, Sept. 15 (Xinhua) --

Wall Street traded higher on Tuesday with the Dow Jones average hitting 9,700 for the first time since Oct. 6 on positive economic data and Federal Reserve Chairman Ben Bernanke's speech.

    The U.S. Commerce Department said that sales at U.S. retailers surged 2.7 percent in August, the most in three years, led by a jump in auto purchases as consumers took advantage of the government's "cash for clunkers" program. The reading exceeded the 2-percent increase economists had expected.

    Bernanke's assessment of the economy was also welcomed by investors. More and more data showed that the world's largest economy is pulling out of the worst recession since the 1930s, said Bernanke on Tuesday, adding that the country's economic recession is very likely over at this point.

    Investors shrugged off news that wholesale prices rose 1.7 percent last month, and disappointing earnings from two major retailers, Best Buy Co. and Kroger Co., also failed to push the stock market off course.

    The Dow Jones average rose 56.61, or 0.6 percent, to 9,683.41, its highest close this year. The S&P 500 index rose 3.29, or 0.3 percent, to 1,052.63, while the Nasdaq composite index rose 10.86,or 0.5 percent, to 2,102.64. 　

Editor: Mu Xuequan

Gold gains after Bernanke says recession ends

2009-09-16 05:50:34  

    CHICAGO, Sept. 15 (Xinhua) --

Gold futures on the COMEX Division of the New York Mercantile Exchange rose back above 1,000 dollars on Tuesday, buoyed by the Federal Reserve chairman Ben Bernanke's words that the recession is probably over. Silver and platinum both ended higher.

    Gold price for December delivery climbed 5.20 U.S. dollars, or 0.5 percent, to finish at 1,006.30 dollars an ounce, although the contract dipped as low as 993 dollars in the morning session.

    Bernanke indicated at the Brookings Institution in Washington that the worst recession since the 1930s is "very likely over at this point" and the economy likely is growing now. But at the same time, he warned that "it's still going to feel like a very weak economy for some time."

    The Fed chairman's view on economy fueled the whole commodity markets as investors believe that demands for commodities will increase as the economy recovers. Crude oil, copper in New York and grains in Chicago Board of Trade rallied after Bernanke's words.

    The jumping retail sales in August provided evidence to Bernanke's optimistic comments. The Commerce Department reported on Tuesday that August retail sales unexpectedly rose a seasonally adjusted 2.7 percent. That's the largest gain since January 2006.

    A weak dollar gave gold additional support, helped the precious metal climb back above the key level of 1,000 dollars.

    December silver finished at 17.00 dollars per ounce, up 37.7 cents. October platinum rose 60 cents to 1,320.30 dollars an ounce. 

Editor: Mu Xuequan

Oil jumps 3% on recovery outlook

2009-09-16 05:51:37  

    NEW YORK, Sept. 15 (Xinhua) --

Crude prices rebounded 3 percent on Tuesday as encouraging U.S. economic data supported the notion that the recession would end this year.

    Light, sweet crude for October delivery rose 2.07 U.S. dollars, or 3.0 percent, to settle at 70.93 dollars a barrel on the New York Mercantile Exchange.

    The gains came after the Commerce Department said that U.S. retail sales surged 2.7 percent in August, the most since January 2006.

    Oil's rally extended as Federal Reserve Chairman Ben Bernanke said technically speaking, the recession was "very likely" over at this point.

    Meanwhile, the dollar fell to a new 2009 low against the euro and Wall Street struck a fresh 11-month high on Tuesday, both encouraging buying in commodities market.

    In London, Brent Crude for October delivery, which was pressured ahead of the expiration, dropped 7 cents to 67.37 dollars a barrel on the ICE Futures exchange. 

Editor: Mu Xuequan