Tuesday, February 22, 2011

20110222 0905 Global Market Related News.

Crude hits 2-yr high, near $94.50 on Libya unrest
TOKYO, Feb 22 (Reuters) - U.S. crude futures extended gains , with the March contract  reaching $94.49 per barrel, the highest for any nearby month since October 2008, as concern grew that violence in Libya could lead to wider supply disruptions from the OPEC country.
The March contract, which expires later in the day, stood at $94 per barrel at 0016 GMT, up more than $3 from late New York levels on MondayU.S. markets were closed on Monday for the Presidents Day holiday, so the contract's previous close for regular session trade was Friday's settlement at $86.20.

Oil jumps on Libya unrest; Asia shares fall
SINGAPORE, Feb 22 (Reuters) - Oil prices rose and Asia stock prices fell as markets anxiously watched the unfolding crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years.
"The market is not reacting much to the decision," said Takeshi Shibasaki, chief financial analyst at Mizuho Securities. "Standard and Poor's has already cut Japan's rating, and separately there already were expectations among participants that Moody's would do something."    

U.S. corn, wheat recover as oil, strong demand support
SINGAPORE, Feb 22 (Reuters) - U.S. corn and wheat futures rose, recovering from declines in the last session, buoyed by crude oil prices that strengthened as a result of the unrest in Libya.
"Pretty much all commodities, including grains, are up this morning and oil is certainly the leader," said Brett Cooper, senior manager for markets at FCStone Australia.

Brazil soy harvest to get break from rain
SAO PAULO, Feb 21 (Reuters) - Rains that have been blanketing Brazil's grain belt are breaking up over the main harvesting regions in the south and center-west this week, local forecaster Somar said on Monday.
Brazil's is heading for a bumper soy harvest that is beginning to spread and should peak in March and April. Analysts have been raising forecasts and are seeing the current crop surpassing the record 69 million tonne crop of 2009/10.

Gold slips from 7-wk high; silver hits 31-yr peak
SINGAPORE, Feb 22 (Reuters) - Gold slipped after rising to its highest in seven weeks, but sentiment was still underpinned by deadly unrest in North Africa and the Middle East as well as uncertainty over the future of oil prices, while silver jumped to its strongest level since 1980. 
"I think the current situation there is really akin to a keg of dynamite," said Ong Yin Ling, investment analyst at Phillip Futures in Singapore."Whether Gaddafi will be toppled or whether we will witness a revolution, I think the final outcome is still uncertain. But the situation is likely to get worse before it gets better. Going forward (gold) could still remain supported due to the crisis, which is unlikely to be resolved anytime soon."    

OIL: Brent crude rises more than $2 on Libya concerns
TOKYO, Feb 22 (Reuters) - Brent crude oil futures rose by more than $2 to as high as $108.18 per barrel from the previous close on continued fears that violence in Libya could lead to wider supply disruptions from the OPEC country.
On Monday, spreading unrest in Libya shut down 6 percent of oil output in Africa's No.3 producer and prompted a number of energy firms to pull out international staff, sending Brent oil prices above $105 a barrel.

COMMODITIES: Oil, gold prices surge on Libyan unrest
LONDON, Feb 21 (Reuters) - Unrest in Libya sparked a rally in oil and gold prices on Monday while a buoyant outlook for industrial metals demand also kept those markets on the boil.
"Libya is a significant producer and exporter of good quality crude oil and threats by the tribal leader to stop production is worrisome," said Christophe Barret, an oil analyst at Credit Agricole Corporate and Investment Bank.

GLOBAL: Asian shares fall; oil, gold rise on Libya unrest
SINGAPORE, Feb 22 (Reuters) - Oil prices rose and Asia stock prices fell on Tuesday as markets watched the growing crisis in Libya, with investors turning to safe haven gold which in turn pushed up silver to its highest level in 31 years.
The single currency also lacked the vigour to break above key resistance after Germany's main ruling party suffered a crushing defeat at a regional election in the city-state of Hamburg on Sunday.

Libya turmoil hits oil, restrains equities
LONDON, Feb 21 (Reuters) - Oil prices charged to a fresh 2-1/2 year high on Monday as traders eyed increasing violence in major producer Libya, feeding fears about rising inflation and restraining gains in equities.
"There is uncertainty about supplies. Markets don't like uncertainty," said Bernard McAlinden investment strategist at NCB Stockbrokers.

Bernanke-Don't blame easy money for capital swings
PARIS, Feb 18 (Reuters) - U.S. Federal Reserve Chairman Ben Bernanke defended easy money policies in advanced economies against the charge they are overheating emerging markets, saying factors such as exchange rate rigidity are also to blame.
Speaking ahead of an economic summit in Paris that will include many critics of the Fed's aggressive bond buying program, Bernanke acknowledged that strong capital flows from advanced economies to emerging markets may be having negative spillover effects.

China factory growth at 7-month low -HSBC flash PMI
BEIJING, Feb 21 (Reuters) - The steady ratcheting-up of monetary tightening has combined with the Lunar New Year holiday to weigh on China's factories in February, even as inflation has continued to accelerate, a survey showed on Monday.
The HSBC flash manufacturing purchasing managers' index (PMI), making its debut, hit 51.5 in February, down from a final reading of 54.5 a month earlier.

WTO issues ruling on China export restraints
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the  case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.

PRECIOUS-Gold rises above $1,400/oz as MEast violence spreads
LONDON, Feb 21 (Reuters) - Gold prices rose above $1,400 an ounce on Monday for the first time in nearly seven weeks as violence flared in North Africa and the Middle East, boosting interest in the precious metal as a haven from risk.
Tensions have spread from Egypt and Tunisia, where protests unseated leaders earlier this month, across the Middle East and North Africa, threatening the grip of long-entrenched autocratic leaders.

FOREX-Euro hurt as Middle-East tensions boil over
LONDON, Feb 21 (Reuters) - The euro slipped on Monday as worries stemming from rising tension in North Africa and the Middle East weighed on risk sentiment, although hawkish comments from European Central Bank officials and data offered support.
It lacked the vigour to break above key resistances after Germany's main ruling party suffered a crushing defeat at a regional election in the city-state of Hamburg on Sunday.

Food inflation set to continue - fund manager
DUBAI, Feb 21 (Reuters) - Food inflation is set to continue for some time as populations shift to industrial areas and emerging economies grow, Charles Funnell, a soft commodities trader with Swiss-based fund manager Aisling Analytics, said.
Funnell also said in an interview with Reuters Insider television that sugar importers were struggling to make margins due to high price volatility, and that in his view regulators may move to set "reasonability limits" to calm price swings.

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