Wednesday, February 2, 2011

20110202 0939 Global Market Related News.

OIL: Oil steadies ahead of US inventory data, Egypt supports
SINGAPORE, Feb 2 (Reuters) - Oil steadied near $91 on Wednesday ahead of U.S. inventory data that is expected to show domestic crude stocks rose last week, while the unrest in Egypt continued to support sentiment. 
Cargo operations at Egypt's Alexandria and Damietta ports have come to a virtual standstill as widespread unrest keeps key staff from work and throws the economy into turmoil, shipping sources said.

COMMODITIES: Copper, soybeans surge; US crude dips
NEW YORK, Feb 1 (Reuters) - Copper hit record peaks near $10,000 a tonne on Tuesday after data suggesting a pickup in U.S. economic recovery, and soybeans surged to a 30-month top, extending the commodities rally into February.
"Brent is up and U.S. crude is down today because any possible disruption in oil supplies passing through choke points such as the Suez Canal has a greater impact on Brent than U.S. crude," said Joe Possillico at commodity brokers MF Global.

GLOBAL MARKETS:Stocks, euro rally on data as Egypt fears ebb
NEW YORK, Feb 1 (Reuters) - Global stocks jumped on Tuesday in a broad rally spurred by hopes of further economic recovery after strong factory data worldwide, while safe-haven assets such as bonds fell as worries about unrest in Egypt ebbed.
"While skeptics might attribute the recent ascent in stock prices to animal spirits, we believe that fundamentals are the real story behind the market's success," said Jonathan Golub, strategist at UBS in New York.

US crude stocks seen up, distillates down
NEW YORK, Feb 1 (Reuters) - U.S. crude oil inventories are expected to have risen last week on higher imports while colder weather drew down distillate stockpiles, an expanded Reuters poll of analysts showed on Tuesday.
Crude stockpiles were forecast up 2.7 million barrels for the week to Jan. 28 as companies continued seasonal import increases, according to the survey of 14 analysts ahead of weekly U.S. inventory data.

China, India PMIs foreshadow rising inflation
BEIJING/BANGALORE, Feb 1 (Reuters) - Input prices jumped in Chinese and Indian factories in January, adding to pressure from food inflation that the fast-growing economies are already struggling to contain, business surveys showed on Tuesday.
But the purchasing managers' indexes (PMIs) in both countries should also give their governments the confidence to stay the course in monetary tightening, analysts said, with firms reporting a steady expansion of activity.

US factory, spending data support strong growth tone
WASHINGTON, Jan 31 (Reuters) - Factory activity in the U.S. Midwest hit a 22-1/2 year high in January as orders surged and employment prospects brightened, providing a fresh signal that the economy would stay on a solid growth path this year.
Another report on Monday showed consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labor market recovery gains traction.

Commodity prices to increase in 2011 - WTO chief
GENEVA, Jan 31 (Reuters) - Economic recovery will make food, metals and other raw materials more expensive in 2011, the head of the World Trade Organization said on Monday.Addressing a United Nations conference, WTO Director-General Pascal Lamy said the prices of crude oil, copper, gold, corn and soybeans would rise most this year, with less pronounced increases in natural gas, zinc and cattle.
"2011 will see the prices of most commodities rise, as the rise in global GDP bolsters demand, led by emerging economies," the Frenchman said, estimating worldwide economic output would increase 4 percent in 2011.

PRECIOUS-Gold edges higher after January's heavy loss
LONDON, Feb 1 (Reuters) - Gold rose in Europe on Tuesday as the dollar index hit a 12-week low and geopolitical tensions centred on Egypt added risk premium to prices, with Asian demand for coins and bars after January's price drop adding support.
However, the metal is expected to stay under pressure after posting its biggest one-month drop since Dec. 2009 in January as investors' appetite for risk improved, diverting interest from so-called safe havens like gold into higher-yielding assets.

FOREX-Euro hits 2-mth high vs dollar on rate view
LONDON, Feb 1 (Reuters) - The euro rallied to its highest against the dollar in more than two months on Tuesday, boosted by signs that increasing inflation pressures will prompt a much faster rise in euro zone than in U.S. interest rates.
Traders said the latest leg-up for the single currency during the European session was driven by demand from Middle Eastern investors, while Asian names were also seen buying back euro positions sold earlier in the day.

Upbeat PMIs lift stocks; dollar weak
LONDON, Feb 1 (Reuters) - Investors shifted their focus from Middle East turmoil to concentrate on improved economic data and corporate results on Tuesday, lifting global stocks.
"There is confidence in the market as companies are reporting good figures," said Heinz-Gerd Sonnenschein, equity markets strategist at Deutsche Postbank in Bonn.

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