GLOBAL MARKETS: Commodities clamber up, giving hope to equity bulls
SINGAPORE, May 19 (Reuters) - - Expectations that commodity prices have resumed an uptrend pushed up equities in Asia's materials sector on Thursday and let off some steam from the dollar's rally this month.
Investors have been struggling to find a common theme in financial markets weeks after a series of routs in the commodities market led to a big reduction of risky assets in portfolios and economic data out of the United States and China flashing mixed signals.
OIL: Crude steady after surging above $100
TOKYO, May 19 (Reuters) - U.S. crude futures stood little changed on Thursday after surging more than 3 percent to above $100 a day earlier on the back of a surge across commodities markets following a recent selling spree.
Wednesday's rise was supported after the U.S. Energy Information Administration reported an unexpected dip in U.S. crude oil inventories and a large drop of 1.6 million barrels in stockpiles at the key Cushing, Oklahoma, delivery point for the U.S. oil futures contract.
NATURAL GAS: Natural gas ends up slightly with crude, technicals
NEW YORK, May 18 (Reuters) - U.S. natural gas futures ended slightly higher on Wednesday, rebounding on a strong rally in crude and some technical buying after Tuesday's sharp sell-off and ahead of a weekly inventory report due out on Thursday.
"I think the crude rally was supportive (for gas), and it looks like some heat comes back (in Texas) which should support cash. I wouldn't want to be short here," a Texas-based trader, noting crude gained more than $3 a barrel on Wednesday.
EUROCOAL: July ARA bids rise by $2/T to nearly $122
LONDON, May 18 (Reuters) - Prompt European coal prices rose by around $2.00 a tonne on Wednesday in line with oil's gains.
"Oil firmed a little and that's given the market some direction but there are still few bids and offers and few trades to show where current value lies," one trader said.
COMMODITIES: Oil, wheat fuel mkt's biggest gain in 2 months
NEW YORK, May 18 (Reuters) - Commodities posted their biggest rise in two months on Wednesday, rebounding from a two-week slump with buyers lured in by lower-than-expected U.S. oil stocks and poor crop weather in the United States and Europe.
"These markets should never had gotten punished in the first place," said Sean McGillivray, vice president and head of asset allocation for Great Pacific Wealth Management in Oregon.
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