Tuesday, September 13, 2011

20110913 1128 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks, euro recover after slide; outlook wary
HONG KONG, Sept 13 (Reuters) - Asian stocks steadied and the euro held above a seven-month low against the dollar on short-covering on Tuesday, after a report that Italy may get financial support from China lifted Wall Street in late trade but did nothing to ease fears that Europe is descending into a banking crisis.
"European fears will continue despite the latest developments, because the euro zone's problems are not easily solved, but Japanese stocks were oversold yesterday, so we will see some traders buying back shares today," said Kenichi Hirano, operating officer at Tachibana Securities.

More Job Cuts Loom for European Banks (Bloomberg)
European banks may resort to more jobs cuts or zero bonuses as they struggle to maintain fixed compensation levels amid deteriorating financial markets. The companies are facing shrinking revenue and higher costs after raising base salaries of investment bankers by as much as 100 percent. That decision, which followed regulations to curb bonuses in the wake of the credit crisis, is irreversible even if conditions worsen, lawyers and consultants said, leaving banks with fewer options in their bid to improve margins. “The absolute last thing banks will want do is cut current salaries unless they have an explicit contractual right to do so,” said Jason Butwick, a London-based employment attorney at law firm Dechert LLP. “The legal, reputational, commercial and logistical risks of going down that route are huge.”

China’s Stocks Fall to 14-Month Low as Economic Data Fuel Policy Concerns (Bloomberg)
China’s stocks fell, dragging the benchmark index to a 14-month low, on concern the government may intensify policy tightening after imports jumped to a record and new lending increased. Industrial & Commercial Bank of China (601398) Ltd. and China Construction Bank Corp. (939) declined at least 0.9 percent after the Beijing News reported the central bank sold additional bills to major lenders, a step to drain liquidity from the banking system. Jiangxi Copper Co. and Aluminum Corp. of China Ltd. retreated more than 2 percent among commodity companies. BYD Co., the automaker part-owned by Warren Buffett’s Berkshire Hathaway Inc., tumbled 6.5 percent on a bond-sale plan. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, dropped 37.10 points, or 1.5 percent, to 2,460.65 as of 11:10 a.m. local time. The gauge, which fell 1.2 percent last week, is headed for its lowest close since July 16, 2010. The CSI 300 Index (SHSZ300) sank 1.7 percent to 2,705.25.

Corn Rises Most in a Week as U.S. Crop Forecast Trails Analyst Estimates (Bloomberg)
Corn futures rose the most in a week after the U.S. Department of Agriculture’s monthly forecast on production trailed estimates by analysts. Output will be 12.497 billion bushels this year, the USDA said today in a report. Analysts in a Bloomberg News survey projected 12.554 billion, on average. Last month, the agency forecast 12.914 billion. Yields will drop to a six-year low, the government said. Prices in the U.S., the world’s top exporter, have jumped 56 percent in the past 12 months as adverse weather eroded supplies. “Supplies are going to be tight this year,” Jerry Gidel, a market analyst at North American Risk Management Services Inc. in Chicago, said in a telephone interview. “Ethanol and livestock producers were buying today because they are worried the crop may get smaller” after the USDA reports harvest results and acreage adjustments in October, he said.

North Dakota oil up 40,000 bpd in July, hits record
NEW YORK, Sept 12 (Reuters) - North Dakota's oil production surged nearly 40,000 barrels per day (bpd) in July to a record 423,600 bpd, as drillers worked at a breakneck pace to add new wells and ramp up output in the prolific Bakken shale prospect.
The bonanza month surprised analysts and industry operators, and came as oil companies caught up on activities that had been stalled due to harsh winter weather and spring floods, according to said Lynn Helms, director of the Industrial Commission for North Dakota.

Saudi Arabia keep supply steady as Libya returns
TOKYO/SINGAPORE, Sept 12 (Reuters) - Saudi Arabia will keep its crude oil supply volume to Asia and Europe unchanged at relatively high level, traders and market sources said on Monday, while Libyan crude oil production was just restarting.
The world's top oil exporter and OPEC kingpin will supply full contracted volumes of crude oil in October to at least three major Asian term buyers, steady from September.

Oil rises $1 with equities, weaker dollar
SINGAPORE, Sept 13 (Reuters) - Oil tracked equities higher on Tuesday as a weaker dollar rekindled some appeal for commodities as concern eased about Europe's deteriorating debt crisis.  
The euro bounced back from Monday's seven-month lows against the dollar on news that China, the world's second-largest oil user, might bolster Italy with financial support, tempering fears of a Greek debt default and contagion.  

NYMEX-Natgas ends down slightly, weather, economy weigh
NEW YORK, Sept 12 (Reuters) - U.S. natural gas futures ended down slightly on Monday as milder U.S. weather forecasts, a weak economy and growing supplies pressured the complex despite increasing tropical storm activity.
"Prices could still move down. Storage is in a good place and we should see another above-average build this week, and a lot of the heat is over," a West Coast trader said.

Euro Coal-Sep S.Africa prices pressured, bids drop
LONDON, Sept 12 (Reuters) - European prompt physical coal prices weakened slightly on Monday, with the greatest downward pressure felt by South African cargoes for immediate loading in September.
"September Richards Bay prices have been odd, collapsing because there's minimal buying interest and cargoes are soon to load, but slightly further forward prices look steadier," one European trader said.

COMMODITIES-Gold, copper dive on euro zone woes; oil mixed
NEW YORK, Sept 12 (Reuters) - Gold fell for a second straight session on Monday and copper slid as the dollar rallied against the euro on worries about a Greek debt default and potential downgrades for French banks.
"Depending on whether the situation in stock markets calms down, this could go on for another couple of days," said Peter Fertig, a consultant for gold at Quantitative Commodity Research in Germany.

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