Thursday, September 15, 2011

20110915 1126 Global Market & Commodities Related News.

GLOBAL MARKETS-Global stocks, euro rise on Europe debt hopes
NEW YORK, Sept 14 (Reuters) - Global equities rallied and the euro rose on Wednesday as optimism over tentative steps to resolve Europe's debt crisis overcame still widespread fears that Greece will ultimately default on its debt.
"The focus today seems to be on whether or not Greece defaults, and the market is anticipating that the can will again be kicked down the road, avoiding a default," said Clark Yingst, chief market analyst at Joseph Gunnar & Co in New York.

Asia Stocks Rise From One-Year Low; Kiwi Falls (Bloomberg)
Asian stocks rose from a one-year low as German and French leaders said they’re certain Greece will remain in the euro zone. New Zealand’s dollar slid after the central bank held interest rates amid the risk of slowing global economic growth. The MSCI Asia Pacific Index rose 1.6 percent at 11:30 a.m. in Tokyo, rebounding from the lowest level since August 2010. Standard & Poor’s 500 Index futures rose 0.1 percent, indicating the U.S. stocks gauge will extend a three-day rally. The euro lost 0.2 percent to $1.3729 before a Spanish debt sale and the so-called kiwi dropped against all 16 major peers. Oil futures slipped a second day.
French President Nicolas Sarkozy and German Chancellor Angela Merkel said they’re convinced Greece will remain in the euro area after Greek Prime Minister George Papandreou committed to meet deficit-reduction targets. Spain plans to sell as much as 4 billion euros ($5.5 billion) of bonds today. Reserve Bank of New Zealand Governor Alan Bollard said there is now a greater risk the global economy will slow “sharply,” while data today may show U.S. inflation eased and industrial production stalled.

China Willing to Assist Debt-Crisis Nations: Zhang (Bloomberg)
China is willing to buy bonds from nations involved in the sovereign debt crisis, National Development and Reform Commission Vice Chairman Zhang Xiaoqiang said in an interview with the media in Dalian yesterday. China is willing to offer assistance, Zhang said without elaborating, adding that Premier Wen Jiabao made similar remarks earlier, according to a transcript distributed on the planning agency’s website yesterday evening. Caijing magazine attended the briefing and published an article earlier. Wen, speaking at the World Economic Forum in Dalian yesterday, signaled that that developed nations should cut deficits and open markets rather than rely on China to bail out the world economy. China can best contribute to the global economic recovery by ensuring steady growth at home, he said.

Crude Declines for a Second Day on U.S. Fuel Supplies, Economic Outlook (Bloomberg)
Oil dropped for a second day in New York as investors bet that increasing U.S. fuel stockpiles and signs of a weakening economy indicate demand will falter in the world’s biggest crude-consuming nation. Futures declined as much as 0.7 percent after an Energy Department yesterday showed gasoline supplies rose 1.94 million barrels last week, the biggest increase since June. U.S. data today may show industrial production stalled in August, according to a survey of economists by Bloomberg News. “The impact a weak U.S. economy is going to have on the oil price is probably largely factored in but if the outlook gets gloomier you’ll probably see more response there,” said David Land, head of analysis at CMC Markets Ltd. in Sydney.

Brent crude gains on euro zone optimism
NEW YORK, Sept 14 (Reuters) - Brent crude rose Wednesday on hopes the euro zone's debt crisis would ease, while U.S. oil futures fell following data showing a surprise increase in U.S. product inventories.
"The DOE data was a mixed bag and even though crude fell more than expected, the market has ignored that." said Andy Lebow, broker at MF Global in New York.

Brent expiry surges to subside as Libya oil returns
LONDON, Sept 14 (Reuters) - Surges in Brent crude oil for immediate delivery that since May have hit the market shortly before monthly futures contracts expire are based on tight supplies and are likely to subside as Libyan oil comes back on the market.
Such surges have become a regular feature of the market due to reduced supplies of oil related to Brent futures and the linked dated Brent physical market. They may also have been exaggerated by the popularity of trading the prompt spread.

Brazil's diesel shortfall to boost Asian market
SINGAPORE, Sept 14 (Reuters) - A diesel shortage in Brazil as refining capacity fails to keep pace with growing industrial demand will boost the country's imports of the fuel from Asia for at least the next two years, helping to mop up a regional surplus.
Growing competition for Asian supplies, coming at a time when fuel demand from China and India are expected to rise in line with their booming economies, will help tighten a market whose gains this year have been capped by high supplies.

French banks dial down Asian oil derivatives
SINGAPORE, Sept 14 (Reuters) - French banks have scaled back activity in the Asian oil swaps market this week, mainly in crude, traders said on Wednesday.
Counterparties and trading partners of Societe Generale , Credit Agricole  and BNP Paribas  told Reuters they were "watching developments" after credit downgrades for two of the banks and a negative outlook for the third.

Libya to begin exporting oil in 10 days - NOC
BENGHAZI, Libya, Sept 14 (Reuters) - Libya will begin exporting crude oil from the eastern port of Tobruk within ten days and could be producing 1 million barrels per day (bpd) within six months, the chairman of the National Oil Corporation (NOC) told Reuters on Wednesday.
The North African country badly needs revenues from its main industry to fund reconstruction after a nearly seven-month war, with violent clashes continuing between interim leaders and forces loyal to deposed leader Muammar Gaddafi.

S.Korea's Aug LNG imports nearly flat yr/yr
SEOUL, Sept 15 (Reuters) - South Korea's imports of liquefied natural gas (LNG) were almost unchanged in August from a year earlier, customs data showed on Thursday.
South Korea, the world's second-largest LNG buyer after Japan, imported 2.02 million tonnes of LNG last month, compared to 2.04 million tonnes the year before, Korea Customs Service data showed.

NYMEX-Natural gas ends up for second day, backed by cold
NEW YORK, Sept 14 (Reuters) - U.S. natural gas futures ended higher on Wednesday for a second day, with the first hint of cold this week stirring more technical buying despite mild extended forecasts, a soft economy and healthy supplies.
"People are starting to focus on the cold front moving into the Midwest and East. It should drive up demand and slow some storage injections this week," a Houston-based trader said.

Euro Coal-Prices drop another $1/T in active trade
LONDON, Sept 14 (Reuters) - Prompt physical coal prices fell by another $1.00 a tonne on Wednesday, having dropped steadily for the past few days on weak demand in Europe and Asia.
"There have been more sellers today, it's been fairly active and it's looking weaker every day," one European trader said.

COMMODITIES- Markets fret over Europe; US oil back under $90
NEW YORK, Sept 14, (Reuters) - U.S. crude oil fell on Wednesday, retreating from the previous session's five-week high, and many commodities saw subdued trading as investors remained on the sidelines due to Europe's debt crisis.
"The market is feeling very ambivalent," said Sterling Smith, futures analyst at Country Hedging in St Paul, Minnesota. "The dollar remains rather mixed and economic questions in broader markets have many traders pushing to the sidelines and not buying as aggressively as they might otherwise."

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