Oil eases from two-year high after Chinese interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil eased from two-year highs as uncertainty over Chinese fuel demand growth following a Christmas Day interest rate hike overshadowed a cold snap in the U.S. Northeast.
"China's interest rate hike is having some impact on the oil markets... because of concerns over how the tightening of monetary policy will impact demand growth," said Serene Lim, an oil analyst at ANZ.
World economy can withstand $100 oil price-Kuwait
CAIRO, Dec 25 (Reuters) - The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said on Saturday, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
Analysts have said oil producing countries are likely to raise output after crude rallied more than 30 percent from a low in May because they fear prices could damage economic growth in fuel importing countries.
U.S. wheat falls from 4-1/2 month top on China rate hike
SINGAPORE, Dec 27 (Reuters) - U.S. wheat futures slid 0.7 percent, falling from a 4-1/2 month top, while soybeans and corn lost ground after China raised interest rates on Christmas Day, the latest in a series of measures to cool inflation.
"It will be bearish for agricultural prices... but we believe the impact will be short-lived and not hit the bullish trend," said Wang Ping, an analyst with Dongwu Futures in China.
Gold recovers some loss, bargain hunting supports
SINGAPORE, Dec 27 (Reuters) - Spot gold regained some ground and platinum group metals returned to positive territory, as bargain hunting lent support, after prices lost about one percent in early trade in response to China's interest rate increase on Saturday.
"Earlier speculators were selling on China's rate hike news, but a lot of buying has since emerged as speculators are buying on dip," said a Tokyo-based dealer.
China rate hike weighs on Aussie, commodities
HONG KONG, Dec 27 (Reuters) - The Australian dollar and commodity prices slid following an interest rate hike by China's central bank over the Christmas weekend, but volumes were light due to holidays in the final week of 2010.
"Expect Asian markets to be tempered into the last trading week of the year. The cautious tone and lower turnover this month compel the case for further consolidation," said Howie.
OIL: Oil falls below $91 after China interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil prices fell below $91 on Monday after China raised interest rates for the second time in just over two months to cool inflation which is running at its highest in over two years.
The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
COMMODITY MARKETS: Oil ends above $91 pre-Christmas; sugar, soy rally
NEW YORK, Dec 23 (Reuters) - Oil ended at a two-year high above $91 per barrel while soybean and sugar prices surged on Thursday as investors tightened their focus on fundamentals in commodities in the last session before Christmas.
"You can almost feel the will for good economic recovery and growth worldwide as we head into 2011," RBC Capital Markets said in a research note out of London.
GLOBAL MARETS: Stocks, oil rise in festive cheer
PARIS, Dec 24 (Reuters) - World stocks held near the previous day's two-year high on Friday while oil hit fresh two-year peaks after strong U.S. data this week encouraged investors to maintain their risk positions into 2011.
"We've had a good run, helped by quantitative easing and better economic data," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "We've broken out of ranges, and it can go higher in 2011."
The surprise timing of the People's Bank of China (PBOC) increase in benchmark lending and deposit interest rates is likely to weigh on commodity markets when trading starts on Monday.On Christmas Day, the PBOC raised rates by 25 basis points, the second rate rise in just over two months, part of a series of measures designed to combat inflation which hit a 28-month high of 5.1 percent in November.
The opportunity to cash in on prices at or near their highest in years before the year end could mean the correction this time may be greater than the losses following the last interest rate hike in October.
US data reinforce solid fourth-quarter growth hopes
WASHINGTON, Dec 23 (Reuters) - Demand for a range of long-lasting U.S. manufactured goods surged in November and consumer spending rose for a fifth straight month, cementing views of a solid economic growth pace in the fourth quarter.
The brightening outlook was also bolstered by other reports on Thursday showing an improving labor market and consumer sentiment, though housing continues to struggle.
China c.bank to gear up fight against inflation
BEIJING, Dec 24 (Reuters) - China's central bank kept up its rhetoric against inflation and excess liquidity on Friday by saying it will deploy a range of policy tools to head off inflationary pressures and asset bubbles.
Hu Xiaolian, a deputy governor at the People's Bank of China, said monetary policy in the world's second-largest economy needs to be prudent to tame inflation, which hit a 28-month high of 5.1 percent in November.
S.Korea faces inflation, asset bubble risks-min
SEOUL, Dec 24 (Reuters) - South Korea 's finance minister said the country needs to brace for inflationary pressures sparked by rising global liquidity and commodities prices in 2011, and an interest rate rise to address the risk of asset price bubbles.
Yoon Jeung-hyun told an economy-related ministerial meeting on Friday that higher international oil, metals and grain prices could pressure supply-side prices in line with growing liquidity and expansion in emerging economies.
PRECIOUS-Gold rises towards $1,385/oz as dollar retreats
LONDON, Dec 24 (Reuters) - Gold prices edged higher in Europe on Friday, supported by the euro's rebound from a three-week low versus the dollar, and as a further ratings downgrade stoked concerns over euro zone debt.
Fitch Ratings downgraded Portugal's long-term and local currency ratings by one notch to A-plus late on Thursday, with a negative outlook.
FOREX-Euro steady in thin trade, sentiment fragile
LONDON, Dec 24 (Reuters) - The euro was steady on Friday after rebounding from a record low against the Swiss franc and a three-week low versus the dollar, but any gains were curbed as investors remained wary about euro zone debt problems.
Trade was extremely thin, with few orders going through so close to the Christmas holidays, resulting in limited movement in any major currency pair.
