Wednesday, September 7, 2011

20110907 1709 Global Market & Commodities Related News.

Asian Stocks Rebound After Slide Drags Valuations to Almost Three-Year Low (Source: Bloomberg)
Asian stocks gained, with the benchmark regional index set for its biggest rise in almost six months, after a three-day drop left valuations near a three-year low and as a weaker yen boosted the outlook for Japanese exporters. Toyota Motor Corp. (7203), the world’s biggest carmaker, advanced 2.9 percent in Tokyo. Samsung Electronics Co., a South Korean exporter of consumer electronics that counts Europe as its third-largest market for sales, increased 6.3 percent. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, advanced 3.7 percent after oil and copper prices rose. Hyundai Motor Co. increased 3.7 in Seoul after saying it plans to expand its European market share. “Unless we get clear policies, it’s hard to make long- lasting investment decisions,” Belinda Allen, senior analyst of investment markets research at Colonial First State Global Asset Management in Sydney, which oversees about $150 billion, said in an interview with Bloomberg TV. “It’s too soon to say we’re on a firmer footing.”

European Stocks Rebound From Two-Year Low (Source: Bloomberg)
European stocks rose, rebounding from a two-year low, after three days of losses dragged the Stoxx Europe 600 Index near to the cheapest valuation since 2008. Asian shares and U.S. index futures advanced. Cie. Financiere Richemont SA, owner of the Cartier watch brand, climbed 4.7 percent after revenue topped analyst estimates. Scor SE (SCR), France’s largest reinsurer, increased 1.6 percent after confirming targets. The Stoxx 600 rose 1.7 percent to 225.65 at 8:57 a.m. in London. The gauge has still tumbled 22 percent from this year’s high in February as concern grew that Europe’s debt crisis is harming the economic recovery. The decline cut the index’s valuation to 10.4 times reported earnings, near the cheapest since December 2008, according to data compiled by Bloomberg.

FOREX-Dollar off two-month high, Swissie nurses losses
TOKYO, Sept 7 (Reuters) - The dollar came off a two-month peak against major currencies, pressured by a rebound in high-yielding currencies that tracked gains in stocks, while the yen rose after Tokyo refrained from easing its already loose monetary policy.
"The euro has to some extent been supported by slightly higher interest rates (in the euro zone), so any comments by (ECB President Jean-Claude) Trichet hinting at some form of easing would send the euro down towards $1.37," said Minori Uchida, senior analyst at Bank of Tokyo-Mitsubishi UFJ.

China halts rare earth production at three mines
BEIJING, Sept 6 (Reuters) - China will halt production of rare earths at three major mines, state media reported on Tuesday, a move which could tighten supply in China, the top exporter of the valuable minerals.
Li Guoqing, the director of the mining management bureau of Ganzhou city in the eastern Jiangxi province, said on Monday that three of eight major rare earth producing counties would stop production by year-end, China's official English-language newspaper said.

China's nickel output seen at 440,000 T in 2011 - Jinchuan Group
SHANGHAI, Sept 7 (Reuters) - China's nickel output is expected to be 440,000 tonnes this year, an executive at the country's top nickel producer Jinchuan Group said on Wednesday.
Wu Jun, vice president at Jinchuan Group Ltd, made the comments to reporters on the sidelines of an industry conference.

China's 2011 steel output seen at 706 mln T - CISA
SHANGHAI, Sept 7 (Reuters) - Steel output in the world's top steel producer China is likely to hit a fresh record in excess of 700 million tonnes this year based on first-half production, a senior official with the China Iron & Steel Association (CISA) said on Wednesday.
"Based on steel production in the first half, China's steel output may reach 706 million tonnes and likely 710 million tonnes this year, but steel output growth is set to slow," Wang Xiaoqi, vice chairman of the China Iron & Steel Association, told an industry conference in Shanghai.

Brazil vows trade defense, targets Chinese steel
BRASILIA, Sept 6 (Reuters) - Brazil vowed on Tuesday to defend its domestic industry against unfair competition and  slapped import tariffs on select Chinese steel products.
It is the latest in a series of measures to defend struggling domestic manufacturers and help shield Latin America's largest economy from the fallout of global financial turmoil.

Italy 7-month steel output up 10.2 pct-Federacciai
MILAN, Sept 6 (Reuters) - Steel output in Italy, the European Union's second-biggest producer after Germany, rose 10.2 percent year-on-year to 17.313 million tonnes in the first seven months of 2011, industry body Federacciai said on Tuesday.
In July alone, Italy's steel output jumped 15.3 percent to 2.618 million tonnes, according to data published on Federacciai's website.

Vale in talks to sell mega iron ore vessels
LONDON, Sept 5 (Reuters) - Brazilian mining giant Vale  is in talks with Chinese and other ship owners to sell or lease its planned fleet of giant bulk carriers, a Vale official told Reuters on Monday.
The move comes less than three months after Vale's first iron ore carrier, at 362 metres long the world's largest dry-bulk vessel, failed to gain access to Chinese ports and was forced to divert to Italy on its maiden voyage.

China's power shortages hit Guizhou aluminium smelters
HONG KONG, Sept 6 (Reuters) - China's primary aluminium output may drop in September from a month ago as power shortages hit smelters in southwestern provinces of Guizhou and Guangxi, industry sources said on Tuesday.
Power supply to many aluminium smelters in Guizhou, which accounts for nearly 10 percent of the country's more than 21 million tonnes of annual aluminium smelting capacity, has been unstable since last week and local authorities have hoisted 'a red warning' on the supply, a smelter official said.

Brazil to double mine royalties in legal overhaul
BRASILIA, Sept 6 (Reuters) - Brazil's overhaul of its mining code will likely double average royalty rates for minerals, Mines and Energy Minister Edison Lobao said on Tuesday.
Previously Lobao had said the government was considering a proposal to increase royalties to an average of 4 percent from 2 percent, but that the issue was still being studied.

S.Africa Q2 gold output up 6.4 pct over pvs qtr
JOHANNESBURG, Sept 6 (Reuters) - South Africa's gold output in the second quarter of this year rose 6.4 percent to 47,563.6 kgs compared with the first quarter of 2011, the Chamber of Mines said on Tuesday.
Production usually rises in the April to June period despite a spate of public holidays as output in the first part of the year is constrained by the slow reboot after the Christmas holidays, when operations are shut.

METALS-Copper gains as supply fears offset global economy woes
JAKARTA, Sept 7 (Reuters) - Copper prices gained almost 1 percent after falling for three consecutive days as a series of labour disputes at mines threatened production and helped offset jitters about the health of the global economy.
"Up modestly," said David Thurtell, a Singapore-based metals analyst at Citigroup. "There are looming strikes at copper mines, but the macro side is likely to cap the complex for some time."

PRECIOUS-Spot gold tumbles 2 pct on technical selling
SINGAPORE, Sept 7 (Reuters) - Spot gold dropped 2 percent abruptly to as low as $1,826, nearly $100 off the all-time high above $1,920 hit in the previous session, tracking heavy losses on U.S. gold futures on technical selling, said traders.
"It was intra-day technical stops," said a Sydney-based trader. "It doesn't reflect any changes in fundamentals."

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