GLOBAL MARKETS: Asia shares up, investors calm on US debt deadlock
HONG KONG, July 26 (Reuters) - Asian shares edged higher on Tuesday, bouncing back from a slide the previous day, after U.S. stocks posted only modest losses in reaction to the worsening deadlock in Washington over raising the debt limit and avoiding a technical bond default.
"The unfolding US debt ceiling drama should add to the headwinds for market risk sentiment, with a potential downgrade of the world's ultimate risk-free asset - the US Treasuries - fuelling more flight to quality into gold and Swiss franc," said currency analysts at Citigroup in a note to clients.
OIL: Crude falls below $99 as U.S. debt talks stall
SINGAPORE, July 26 (Reuters) - U.S. crude futures fell below $99 a barrel on Tuesday as investors avoided riskier assets with United States lawmakers stuck in a deadlock over dueling debt plans, raising the risk of a credit ratings downgrade and national default.
A credit ratings downgrade and a debt default by the United States may derail growth in the economy and pare oil demand in the world's biggest consumer.
NATURAL GAS: Natural gas slips midday as early-week heat eases
NEW YORK, July 25 (Reuters) - Front-month U.S. natural gas futures lost ground midday Monday, pressured by milder Northeast and Midwest weather early this week and record high production despite warmer late week forecasts.
"Even the heat hasn't been enough to tighten the balance. We're still seeing major gains in shale production, and there's just too much supply and not enough demand," a New York-based analyst said, noting temperatures in the East this week have eased from last week's extremes.
EURO COAL:Prices tick 50c up on S.Africa strike
LONDON, July 25 (Reuters) - Prompt Richards Bay physical coal prices rose marginally by 50 U.S. cents on Monday in response to a strike by 150,000 coal miners in South Africa which industry sources expect to last long enough to hit exports .
Although stocks at South Africa's Richards Bay Coal Terminal are currently a comfortable 3.5 million tonnes, stockpiles at mines and RBCT will be exhausted within 3-4 weeks if the strike drags on that long and shipments will have to be delayed or cancelled.
COMMODITIES: Gold hits record, oil slides on U.S. debt
LONDON, July 25 (Reuters) - Gold surged to another record high, while oil and other commodities fell on Monday as the countdown for the United States to reach a debt deal or face a disastrous default drove investors into safer assets.
"There's no doubt we will get a solution," said Rob Montefusco, oil trader at Sucden Financial. "But the markets are nervous, and there's not a great deal of volume going through."
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