Friday, December 3, 2010

20101203 0950 Global Market News.

Oil trades near 25-month high before U.S. jobs report
SINGAPORE, Dec 3 (Reuters) - Oil was steady near 25-month  highs following a slew of upbeat U.S. economic data  that boded well for demand from the world's top user, ahead of  a jobs report expected to show employment expanded for a  second straight month in November.
"Oil, like most global markets, has been buffeted by concerns surrounding the euro zone problems and their potential broader implications," JP Morgan analysts headed by Lawrence Eagles said. 

U.S. wheat up 1 pct, extends rally on weather concerns
SINGAPORE, Dec 3 (Reuters) - U.S. wheat futures added more  than 1 percent, rising for the third straight  session and taking the weekly gains to 10 percent as rains in  Australia and dry weather in the United States continued raise  supply concerns and buoy prices.
"It has got do a lot with what is happening in Australia.  The rains have made crops unsuitable and there are more rains forecast," said Jonathan Barratt, managing director at
Commodity Broking Services in Sydney. "If corn can take out $5.50 level on December contract, it is going to go on  further. There is global tightness in supplies."

Gold ticks higher, but euro zone fears fade
SINGAPORE, Dec 3 (Reuters) - Gold gained to hold  near its strongest in almost three weeks as bargain hunting  helped the metal defy a rebound in the euro, waning Europe  debt concerns and upbeat U.S. data.
"We can say there are some bargain hunters at the lower end. There's not too much liquidity in the market and a little bit of buying moves up gold," said Ronald Leung, director of  Lee Cheong Gold Dealers in Hong Kong.    

US dollar, stocks poised to gain on jobs recovery
HONG KONG, Dec 3 (Reuters) - The U.S. dollar was steady ahead of payrolls data for November that could show  more evidence of a strengthening recovery and give investors a  reason to push benchmark U.S. Treasury yields above 3 percent  and put more money in equities.
"It is clear that the labour situation is improving and  with consumption demand -- the final demand that drives all  else -- strengthening by the day, hiring should continue to  improve," economists at DBS Group in Singapore said in a note.

Canola to miss boost from Canada biodiesel
WINNIPEG, Manitoba, Dec 2 (Reuters) - Canada's No. 2 crop, canola, looks to miss out on potential domestic demand from biodiesel until Canada clarifies its fuel mandate and offers new incentives to an already heavily subsidized industry.
Canada has finished selecting biodiesel plant proposals to receive funding from a C$1.5-billion ($1.5 billion) program, aiming to cut greenhouse gas emissions by 17 percent by 2020 from 2005 levels through mandates of 5 percent ethanol and 2 percent biodiesel in conventional fuel pools.

Oil-focused Asian hedge fund starts trading distillates
SINGAPORE, Dec 2 (Reuters) - RedWell Fund SPC, one of  Asia's pioneering oil-focused hedge funds, has its eyes  trained on the growing distillates market, as it started  trading in Singapore's Over-The-Counter (OTC) swaps market,  its founder said on Thursday. 
The fund, with $13 million under management, is committing  up to 70 percent of its portfolio to trading the regrade --  the price spread between jet fuel and gas oil -- and the rest  to  fixed-priced contracts of both products, said Wei Min, who  is also the fund's president. 

OIL: Crude trades near 25-month high before U.S. jobs report
SINGAPORE, Dec 3 (Reuters) - Oil was steady near 25-month  highs on Friday after a slew of upbeat U.S. economic data that  boded well for oil consumption by the world's top user, ahead  of a jobs report expected to show employment expanded for a  second straight month in November.
Both U.S. heating oil and gasoline futures rallied, supporting crude's rise. Heating oil rose amid colder temperatures in the U.S. Northeast, the biggest heating oil market. Gasoline gained on regional supply tightness in the key East Coast market. 
COMMODITY MARKETS: Metals, oil surge on upbeat data, Fri jobs eyed
NEW YORK, Dec 2 (Reuters) - Commodity markets soared on Thursday with oil and industrial metals helped by gains in the euro and encouraging U.S. economic data, while wheat rose on crop weather worries, but cocoa surged as contention over the presidency led to sealed borders in top grower Ivory Coast.
"The real issue is what happens next, and if we see violence," said Sterling Smith, a senior analyst for brokerage Country Hedging Minnesota.
GLOBAL MARKETS: Stocks, euro gain on talk of ECB bond purchases
NEW YORK, Dec 2 (Reuters) - The euro rebounded against the U.S. dollar on Thursday and global stocks rallied as talk that the European Central Bank had increased its buying of sovereign debt and recent upbeat economic data lifted sentiment.
"The fears had been centered on Europe. That seems to have stabilized," said Mark Bronzo, portfolio manager at Rydex-SGI in Irvington, New York. "Now the focus is on what domestic and international growth will look like. People are betting that growth will be better than people had feared."  

World recovery slows, will be hit by austerity-UN
UNITED NATIONS, Dec 1 (Reuters) - The world's recovery from the 2008 financial crisis is losing steam, with growth, hit by austerity drives in rich countries, not enough to restore the 30 million lost jobs in the next two years, the United Nations said on Wednesday.
"The road to recovery from the Great Recession is proving to be long, winding and rocky," said an annual U.N. survey, "World Economic Situation and Prospects 2011."

U.S. economy stays on sluggish growth path - Fed
WASHINGTON, Dec 1 (Reuters) - The U.S. economy continued its slow recovery in recent weeks, the Federal Reserve said on Wednesday, with pockets of strength in manufacturing offset by "depressed" housing markets and employers still reluctant to hire in significant numbers.
The U.S. central bank's Beige Book showed more anecdotal evidence that the economy is struggling to break into a faster expansion needed to generate sufficient job growth.

Markets pin hopes on ECB to ease Europe crisis
FRANKFURT/BERLIN, Dec 2 (Reuters) - The European Central Bank faced pressure on Thursday to take steps to contain the euro zone debt crisis and prevent it affecting the United States and Asia, but was unlikely to announce mass new bond purchases.
Pressure has grown on the ECB to act since last weekend's 85 billion-euro ($110.7-billion) EU-IMF rescue of Ireland failed to dispel fears that other countries using the euro, such as Portugal or Spain, could require a bailout.

PRECIOUS-Gold firms ahead of ECB meeting; debt fears linger
LONDON, Dec 2 (Reuters) - Gold firmed a touch on Thursday, supported by some safe-haven buying and a softer dollar, but prices remained rangebound as investors awaited the outcome of a key European Central Bank meeting later in the session.
"The ECB will determine currency moves and if we have a significantly stronger euro following the decision that's likely to be positive for gold," Daniel Major, analyst at RBS said.

FOREX-Euro holds firm as all eyes on possible ECB steps
LONDON, Dec 2 (Reuters) - The euro held firm on Thursday after rising the previous day as investors waited to see if the European Central Bank would take more steps to calm euro debt concerns, but could fall again if the central bank disappoints.
"The focus is on whether Trichet will announce a numerical target for bond purchases. If he keeps to saying they are ready to buy more bonds but without a numerical target, the markets will be disappointed and turn negative on the euro," said Roberto Mialich, currency strategist at Unicredit in Milan.

ECB hopes lift stocks, stabilises euro
LONDON, Dec 2 (Reuters) - World stocks rose for a second straight day on Thursday while the euro sat on the previous day's gains as expectations grew the European Central Bank might deliver measures to alleviate worries over euro zone debt.
"The focus is on whether (ECB President Jean-Claude) Trichet will announce a numerical target for bond purchases," said Roberto Mialich, currency strategist at Unicredit in Milan.

Oil slips from 3-week high on U.S. inventories, China policy
SINGAPORE, Dec 2 (Reuters) - Oil slipped as  traders focused on rising U.S. crude inventories following a  rally of 3 percent in the previous session, when encouraging  jobs data in top consumer the United States helped drive  prices to their highest in almost three weeks.
"Yesterday's rally was due to general risk on sentiment  and positive economic data from China and the United States,"  said Stefan Graber, a commodities analyst with Credit Suisse  in Singapore.

Gold firms near highs, euro debt worries persist
SINGAPORE, Dec 2 (Reuters) - Gold firmed,  within sight of its highest in nearly three weeks hit the  previous session, as worries about euro zone's fiscal crisis  lingered despite hopes the European Central Bank and the  United States would step in to help.
"I don't think you can solve this problem a short period  of time. I think we are still worried about the situation in  Europe," said Dick Poon, manager at Heraeus in Hong Kong. 

Stocks rally, euro steadies ahead of ECB meeting
HONG KONG, Dec 2 (Reuters) - Japan's Nikkei share average  hit a five-month high and the euro stayed within sight of  overnight highs ahead of a European Central Bank  meeting that investors speculate could yield new measures to  contain the euro zone's fiscal crisis.
"The sovereign debt crisis has shown early signs of  transforming into a banking and liquidity crisis," Todd Elmer,  currency strategist with Citi in Singapore, said in a note.

COMMODITY MARKETS: Raw goods rally on Chinese, US economic data
NEW YORK, Dec 1 (Reuters) - Commodities rallied on Wednesday, led by sharp gains in U.S. wheat and gasoline futures, after positive economic data from the United States and China, the world's leading consumers, and a stronger euro boosted investor confidence about demand.
"From the depths of despair yesterday that resulted in a sell-off, there is a rash of positive economic data everywhere you look today," said Phil Flynn, energy analyst at PFGBest in Chicago.
GLOBAL MARKETS: Stocks, euro leap on hope US, ECB may help Europe
NEW YORK , Dec 1 (Reuters) - World stocks and the euro jumped on Wednesday on hopes the United States would further support debt-burdened euro-zone countries and bets the European Central Bank could step up its bond-buying program.
"It seems that as bad as Europe's issues are, there is a growing sense that this is not a systemic problem that is going to bring the whole system down," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

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