Monday, November 1, 2010

20101101 0842 Global Market News.

Oil rises on weaker dollar, expectations for Fed stimulus
PERTH, Nov 1 (Reuters) - Oil rose to nearly $82, buoyed by expectations that the U.S. Federal Reserve will commit to a new round of monetary stimulus this week and prompt further weakness in the dollar.
"The market is looking forward to the stimulus, or quantitative easing," said Jonathan Barratt, managing director of Commodity Broking Services in Sydney.

China to unveil 5-yr energy plan in March earliest-media
BEIJING, Nov 1 (Reuters) - China's energy plan for the five years from 2011 to 2015 will be published in March at the earliest, a senior government official was quoted as saying, as market watchers were looking for details how China would power its fast economic expansion.
The plan would be unveiled only after the disclosure of an overall plan for national economy, the Economic Observer reported on its website (www.eeo.com.cn), citing Wu Yin, deputy administrator of the National Energy Administration.

Global energy supplies may not tighten -Singapore PM
SINGAPORE, Nov 1 (Reuters) - Hopes of new energy supplies such as unconventional gas may help to meet growing demand globally, Singapore Prime Minister Lee Hsien Loong said on Monday.
"Time and again experts have warned that oil and gas deposits will soon be depleted," he said at the Singapore Energy Summit.

US corn rallies for 6th session on weather, dollar
SYDNEY, Nov 1 (Reuters) - U.S. corn futures rallied for the sixth straight session, rising more than 1.25 percent to hit a 26-month high as wheat strengthened on weather concerns and the dollar remained weak.
"There's expectations of dryness to continue across the U.S. central plains over the next 10 days which is raising some concerns about the quality of the (U.S.) wheat crop as it enters its winter dormancy period," said Mathews.

Indonesia's 2010 rice output seen rising 2.47 pct
JAKARTA, Nov 1 (Reuters) - Indonesia's rice production is expected to  rise 2.47 percent to 65.98 million tonnes of unmilled rice this year, from 64.39 million tonnes in 2009, the state statistics bureau said on Monday.

China to sell more sugar reserves if needed-NDRC Official
BEIJING, Nov 1 (Reuters) - China will sell more sugar reserves to meet market demand and curb rapidly rising prices if needed, an industry web site cited an official from the country's economic planner was quoted as saying Monday.
The government has considered moves to strengthen its intervention in the sugar market to guarantee supplies, said Liu Xiaonan, a deputy chief of economic and trade department under the National Development and Reform Commission, according to the Guangxi Sugar Website.

China says no "significant" cut for rare earth quotas
BEIJING, Nov 1 (Reuters) - China's rare earth export quotas for 2011 will not be cut "significantly" from recent levels, a commerce official said on Monday, adding to Beijing's efforts to soothe foreign companies and governments worried about supply.
A Chinese Vice Minister of Commerce, Chen Jian, made the comments at a news conference following weeks of international jitters about whether China could use its hold on 97 percent of global rare earths production to sharply curtail exports of the metals, which are used for many high-tech applications.

OIL: Crude rises toward $82 as weaker dollar supports
TOKYO, Nov 1 (Reuters) - U.S. crude futures on Monday rose towards $82 a barrel on support from a weaker dollar against the yen, regaining some ground after falling nearly 1 percent late last week on sluggish U.S. economic data.
The U.S. economy grew at a 2.0 percent annual rate, up from 1.7 percent in the second quarter, the government said on Friday, in line with expectations but not enough to reduce high unemployment.

COMMODITY MARKETS: Investors cash in ahead of pivotal macro week
SINGAPORE, Oct 29 (Reuters) - Commodities pushed lower on Friday, paring some of October's gains on uncertainty surrounding the form and size of Federal Reserve liquidity injections expected after the central bank meets next week.
"It's turned into wait and see. There are mixed messages about quantitative easing so the sentiment ebbs and flows," said Mark Pervan, senior commodities analyst at ANZ in Melbourne.

GLOBAL MARKETS: Bonds rally, dollar slips before eventful week
NEW YORK, Oct 29 (Reuters) - Bond prices jumped and the dollar eased on Friday after data showed the U.S. economy grew in the third quarter but not briskly enough to alter expectations of Federal Reserve monetary easing next week.
"We're going to be in a prolonged period of relatively low interest rates," said James Sarni, managing principal and senior portfolio manager at Los Angeles-based Payden & Rygel, with $55 billion in assets under management.

U.S. growth seen up in Q3, but still slack
WASHINGTON, Oct 29 (Reuters) - U.S. economic growth likely edged up in the third quarter but not enough to chip away at high unemployment or change perceptions of more monetary easing from the Federal Reserve next week.
A government report on Friday is expected to show gross domestic product expanded at a 2.0 percent annual rate as consumer spending accelerated and the trade deficit narrowed, compared with a 1.7 percent pace in the second quarter, according to a Reuters survey.

PRECIOUS-Gold dips as dollar firms ahead of U.S. data, Fed
LONDON, Oct 29 (Reuters) - Gold eased in Europe on Friday as the dollar rose against a currency basket ahead of U.S. growth data later in the session, but traders remained cautious ahead of a hotly anticipated Federal Reserve policy meeting next week.
"The Fed meeting next week has been dominating the markets," said Standard Bank analyst Walter de Wet. "Ahead of that, people have positioned themselves, and from an investment perspective they are not going to add too much more gold.

FOREX-Yen gains as equities slip, high-yielders fall
LONDON, Oct 29 (Reuters) - The yen rose to within sight of its 1995 record high versus the dollar on Friday, rising broadly as equity markets fell, pushing down the euro and high yielders in trade made choppy by month-end flows.
"The yen is outperforming on risk-aversion following the Japanese data," said Manuel Oliveri, currency strategist at UBS in Zurich.

Wheat slips after 5-day rally, corn eyeing best month
SINGAPORE, Oct 29 (Reuters) - U.S. wheat futures edged lower as investors locked in gains after a five-session rally fed by concerns that weather problems in the United States and Australia will cut production.
"China has rampant food inflation that they're trying to keep under control, so it's a difficult situation whereby they would be looking to build reserves but also keep prices under control," said Adam Davis, senior commodity analyst at Merricks Capital in Melbourne.

Fed QE guessing game weighs on world stocks
LONDON, Oct 29 (Reuters) - World stocks fell and the dollar slid towards its 1995 record low versus the yen as investors braced for U.S. growth data to assess the likely scale of fresh Federal Reserve monetary easing.
"There is uncertainty ahead of the Fed statement for sure," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

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