Wednesday, February 16, 2011

20110216 0949 Global Market Related News.

Crude rebounds as U.S. crude stocks fall unexpectedly
SEOUL, Feb 16 (Reuters) - U.S. crude futures recovered slightly in early Asian trade after the American Petroleum Institute (API) said U.S. crude stocks fell unexpectedly last week as imports dropped.
NYMEX crude for March delivery was up 0.23 cents, or 0.27 percent, at $84.55 a barrel by 2338 GMT. It settled down 0.58 percent on Tuesday at $84.32 a barrel, the lowest close since Nov. 30, 2010, when front-month crude closed at $84.11.

Gold steady after two days' gain; investors on sideline
SINGAPORE, Feb 16 (Reuters) - Spot gold held steady after two consecutive sessions of gains, as investors stood on sidelines of a market with no clear trend for the short term, and technical resistance is seen around $1,375.
"We are seeing inflation rise globally," said Darren Heathcote, head of trading at Investec Australia, "The bullish trend is intact, although we'll see periods of weakness."

Sterling rises, Nikkei at 9-mth high on soft yen
SYDNEY/TOKYO, Feb 16 (REUTERS) - Sterling rose in Asia as accelerating inflation in Britain cemented expectations of an early interest rate rise, while a weaker yen helped to send Japanese stocks to their highest level since May. 
"The question everybody is asking is whether that is the reversal of a trend of the bullish emerging market story or is that just a rebalancing of portfolio," Zorrilla said, adding that he supported the second view. 

OIL:Crude rebounds as U.S. crude stocks fall unexpectedly
SEOUL, Feb 16 (Reuters) - U.S. crude futures recovered slightly in early Asian trade on Wednesday after the American Petroleum Institute (API) said U.S. crude stocks fell unexpectedly last  week as imports dropped.
Concerns over possible supply disruption also buoyed the  markets as unrest in the Middle East continued in Bahrain,  Iran and Yemen.

COMMODITIES:Down after early gains; Mideast, inflation on radar
NEW YORK, Feb 15 (Reuters) - Heavy profit-taking in grains and metals wiped out early gains in commodities on Tuesday, but inflation worries and tensions in Middle East oil producing nations could reverse the trend quickly, analysts said.
"If you're an investor and looking to position yourself in this environment, you'll go long commodities," said Adam Sarhan at Sarhan Capital in New York. "We are starting to see higher inflation that's going to reflect itself in higher oil prices and higher commodity prices everywhere."

GLOBAL:Sterling rises, Nikkei at highest since May
SYDNEY/TOKYO, Feb 16 (REUTERS) - - Sterling rose in Asia on Wednesday as accelerating UK inflation fueled talk of an early rate rise, while a weaker yen helped to send Japanese stocks to the highest level since last May. 
Sterling rallied to a 5-1/2 month peak against a currency basket  after inflation in Britain jumped to twice the Bank of England's target in January, prompting Governor Mervyn King to acknowledge that interest rates might rise more rapidly than economists had expected.

China inflation surprisingly low, media says lending brisk
BEIJING, Feb 15 (Reuters) - Chinese inflation  was lower than  forecast at 4.9 percent in the year to January, but price  pressures continued to build and will force the central bank to  stick to its course of gradual monetary tightening.
That was underlined by a Xinhua report that Chinese banks extended 1.2 trillion yuan ($182 billion) in new lending in January -- in line with expectations and nearly a fifth of 7 trillion yuan in loans that many assume is the government's full-year target in 2011.

Obama budget has $556 bln, six-year transport plan
WASHINGTON, Feb 14 (Reuters) - President Barack Obama on Monday proposed an ambitious long-term transport spending plan in his 2012 budget as a way to boost U.S. economic competitiveness and spur job growth.
While cutting other spending, Obama aggressively accelerated efforts to upgrade aging roads, bridges

China the wild card for commodity prices
LONDON, Feb 15 (Reuters) - A strengthening global economy and growth in demand are likely to keep commodity prices high in coming months, but there is a risk China could slam on the monetary brakes and trigger a reversal.
Low inventories make copper and corn favourite bets for investors this year as long as prices stay strong.

PRECIOUS-Gold up on weaker dollar, China inflation
LONDON, Feb 15 (Reuters) - Gold rose for a second day on Tuesday, helped by a weaker dollar and slower Chinese inflation data that soothed some concern over the prospect of more rapid rate rises in the world's second largest bullion consumer.
Rising inflation particularly in the emerging world could encourage demand for gold, which can help investors insulate their portfolios against growing price pressures.

FOREX-Euro creeps higher but hampered by debt skepticism
LONDON, Feb 15 (Reuters) - The euro edged higher on Tuesday on demand from the Middle East and Asia, but it was undermined by scepticism over how euro zone leaders would come up with a quick and effective solution to tackle its debt crisis.
Peripheral euro zone yield spreads have been widening in the past week on uncertainty over a rescue package for the region, and there was some disappointment after a meeting of European finance ministers on Monday.

U.S. corn rises 0.6 pct on supply fears, wheat dips
SINGAPORE, Feb 15 (Reuters) - U.S. corn futures rose around half a percent recovering some ground as investors placed bets on shrinking supplies amid strong demand from food and fuel sectors.
"Corn is seeing some modest gains as there is a kind of bargain-hunting because we saw a sharp decline in prices," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures.

China data eases rate fears, world stocks up
LONDON, Feb 15 (Reuters) - Chinese inflation data helped ease investor concerns that the world's No 2 economy will have to tighten monetary policy more aggressively, but other data releases kept markets in a tight range.
"The data probably slightly eased expectations of immediate tightening, although in the overall scheme of things, this doesn't change the fact that China is still in a tightening phase," said Etsuko Yamashita, chief economist at SMBC.

Crude up on China demand, unrest in Middle East
SEOUL, Feb 15 (Reuters) - U.S. crude futures pared some  losses in early Asian trade , buoyed by Chinese demand and unrest in the Middle East, which could trigger supply  disruptions of crude oil. NYMEX crude for March delivery  was up 0.09 cents, or 0.11 percent, at $84.90 a barrel by 2351 GMT, after settling down 0.9 percent at $84.81. Near Monday's close, the contract hit a session low of $84.58, the lowest since Dec. 1, when prices hit $83.63.

Obama would end subsidies to wealthiest US farmers
WASHINGTON, Feb 14 (Reuters) - President Barack Obama called for the elimination of farm subsidies to the wealthiest farmers in his new budget plan on Monday, arguing that the payments distort the farm sector and even pay some farmers that grow no crops.
Lawmakers rejected an identical proposal a year ago, ahead of the mid-term elections, saying any change in farm supports should be delayed until an overhaul in 2012.

Gold edges up after China inflation data
SINGAPORE, Feb 15 (Reuters) - Spot gold inched higher after China's weaker-than-expected inflation data eased fears of more aggressive tightening moves, while persistent concerns about rising prices are expected to buoy gold in the longer term. "The number, in line with market expectations, may help reduce fears of further tightening and underpin gold prices to a certain extent," said Hou Xinqiang, an analyst at Jinrui Futures in China.

Asian stocks rise slightly, copper up on China CPI
SYDNEY/TOKYO, Feb 15 (Reuters) - Asian stocks rose slightly on Tuesday after China's closely-watched inflation data failed to surprise markets, while the euro regained some ground after hitting a three-week low the previous day.
"The data probably slightly eased expectations of immediate tightening, although in the overall scheme of things, this doesn't change the fact that China is still in a tightening phase," said Etsuko Yamashita, chief economist at SMBC.

Argentine corn farmers could lead new protests
BUENOS AIRES, Feb 14 (Reuters) - Argentine corn farmers, facing shrinking yields and low domestic prices, could lead a drive for fresh protests against government export policies, which sparked a commercial strike last month.
Protests in the South American country -- a leading supplier of corn, soybeans and wheat -- often move global prices, especially if they disrupt trade at the peak of the corn and soy harvests in March and April.

Vale's Malaysian iron-ore hub to handle 30 mln T/yr
IPOH, Malaysia Feb 14 (Reuters) - Brazil's Vale  will spend $1.3 billion in the first phase of its transhipment project in Malaysia's Perak state that can handle 30 million tonnes of iron ore yearly to meet global demand, a Malaysian official said on Monday.
Perak Chief Minister Zambry Abdul Kadir told Reuters the world's largest iron ore miner's Malaysian hub would be ready by 2014 to handle Chinamax carriers, which are 400,000-tonne iron ore vessels that will cut freight costs for Vale.

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