Wednesday, December 15, 2010

20101215 0904 Global Market News.

Oil prices ease after U.S. Fed dampens fast recovery hopes
SINGAPORE, Dec 15 (Reuters) - Oil prices eased after the U.S. Federal Reserve dampened rising  expectations for a faster economic recovery, seen as critical  to reigniting oil demand in the world's biggest energy user.
"Some of the U.S. macroeconomic data has been more  positive in the last month or two and some corners of the  market had been hoping the Fed would have been more upbeat,"  said Ben Westmore, a commodities analyst at National Australia  Bank. 

Oil platform fire to have little impact on Malaysia exports-sources
SINGAPORE, Dec 15 (Reuters) - A fire at an oil platform  operated by Petronas Carigali, a unit of Malaysia's state oil  firm Petronas , is expected to have little impact on  the country's exports of Tapis crude, trade sources said on  Wednesday.
The Bekok C platform, located 200 kilometres off the  eastern shore of peninsular Malaysia, is one of several fields  that produces the country's flagship Tapis crude, they said. 

Soybeans rise on Argentina crop outlook, wheat flat
SINGAPORE, Dec 15 (Reuters) - U.S. soybean futures rose as dry weather in major producer Argentina raised  concern about its crop, while wheat prices steadied after  sharp losses in the previous session.
"Higher exports out of the U.S. and some lingering concern  about the South American crop are enough to keep the soybean  market well supported," said Brett Cooper, senior manager for  markets at FCStone Australia.

Gold moves little ahead of holidays, dollar weighs
SINGAPORE, Dec 15 (Reuters) - Spot gold was little changed  as the market entered consolidation mode ahead of  the year-end, but a rebound in dollar put pressure on the  bullion.
"It's really nothing new. Gold recently hit a record high,  and has been under some profit-taking pressure. It would need  fresh impetus to go higher, but there isn't any around," said  Hou Xinqiang, an analyst at Jinrui Futures in China. 

GLOBAL MARKETS-Treasury yields climb, dollar benefits
SINGAPORE, Dec 15 (Reuters) - Yields on U.S. Treasuries  climbed to seven-month highs in Asia on Wednesday and the  dollar rebounded as upbeat retail sales data added to evidence  that America's economy is gathering steam.
"The U.S. Fed's statement strengthened the likelihood the  U.S. would continue its quantitative measure. Combined with a  good set of retail data, sentiment is still good," said Hong  Soon-pyo, a market analyst at Daishin Securities  

OIL: Oil slips after U.S. Fed says recovery still slow
PERTH, Dec 15 (Reuters) - Oil prices edged lower on  Wednesday on a stronger dollar and the U.S. Federal Reserve's  comments that recovery in the world's largest economy remained  slow.
The U.S. Federal Reserve on Tuesday offered only a cautious nod to the economy's improving prospects as it put a spotlight on lofty unemployment and reaffirmed its commitment to buy $600 billion in bonds.

COMMODITY MARKETS: Wheat slides, oil, gas lower as dollar firms
CHICAGO, Dec 14 (Reuters) - Wheat posted its biggest drop in a month on profit-taking while oil and gas edged lower in a choppy, low-volume day for most commodities as the dollar rallied on comments from the U.S. Federal Reserve.
"I think ultimately it's dollar positive given that there were some fears they could announced further expansion of quantitative easing," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.
    
GLOBAL MARKETS: U.S. stocks, bond yields rise on recovery outlook
NEW YORK, Dec 14 (Reuters) - U.S. stocks eked out gains and U.S. Treasuries prices slumped on Tuesday after the U.S. Federal Reserve showed no signs of curtailing its economic stimulus measures and U.S. retail sales data signaled an accelerating economic recovery.
"The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment," the Fed said in a statement at the conclusion of a one-day meeting. 

FAO Ups World 2010 Cereals Estimate As Food Prices Near Highs (Source: CME)
World food prices are within reach of their June 2008 highs despite improving prospects for global cereal production this year, the United Nation's Food and Agriculture Organization said. Total cereal production is expected to hit 2.229 billion metric tons in 2010, the FAO said in its latest food security report, increasing its November estimate of 2.216 billion tons. Yet despite the improving outlook for grain production, food prices remain high. The FAO's Food Price Index averaged 205 in November, up seven points from October and only seven below its record high two years ago, when the rising cost of food caused widespread riots in developing countries. The rise in the index, which measures the monthly change in international prices of a basket of commodities, was driven largely by rising "sugar and oils" prices, the FAO said.
Global cereals markets are also expected to remain tight as consumption outpaces demand, eating into world inventories, the Rome-based FAO said. "World supply and demand balance for cereals could still tighten considerably with total utilization exceeding world production; thus necessitating a 6% decline in ending stocks," it said.

Corn, wheat ease; weather worry caps losses
SINGAPORE, Dec 14 (Reuters) - U.S. corn and wheat futures slipped on Tuesday as investors cashed in recent gains  although a bleak global weather outlook which may tighten supplies has capped losses.
"Weather is still a major concern. If those fundamentals  remain into the new year and, combined with fresh money  flowing into commodity markets, then clearly that'll be enough  to push this market higher."  

PRECIOUS-Dollar dip lifts gold; focus on Fed later
LONDON, Dec 14 (Reuters) - Gold rallied for a second day on Tuesday to reach one-week highs above $1,400 an ounce, taking advantage of a slide in the dollar ahead of a U.S. policy meeting.
The Federal Reserve gathers for a one-day rate-setting meeting on Tuesday at which policy makers are expected to assess the central bank's $600 billion bond-buying plan but are not forecast to signal any shift or change in the programme.

FOREX-Euro hits 3-week high vs dlr, Aussie at parity
LONDON, Dec 14 (Reuters) - The euro hit three-week highs versus the dollar and yen in thin trade on Tuesday, as investors took the view that a recent rise in front-end U.S. yields had gone too far, prompting a squeeze of euro shorts.
The Australian dollar jumped to a one-month high above parity with the U.S. dollar, helped by a rise in prices of gold and other commodities such as copper and by broad dollar weakness.

No comments: