Tuesday, September 20, 2011

20110920 1124 Global Market & Commodities Related News.

GLOBAL MARKETS -Asia stocks, euro fall after Italy downgrade
SINGAPORE, Sept 20 (Reuters) - Asian stocks and the euro fell on Tuesday after ratings agency S&P downgraded Italy and amid fears of a Greek default, as investors worried that the euro zone's debt woes will pitch the global financial system into a full-blown banking crisis.
"It only adds to the contagion risk over Greece and has encouraged the flight to safety in markets here," said Stephen Roberts, a senior economist at Nomura in Sydney, pointing to a sharp fall in the Australian dollar  on the news.

Asian Stocks Drop as Italy’s Credit-Rating Cut Boosts Debt-Crisis Concerns
Asian stocks fell, extending a two- week decline on the region’s benchmark stock index, after Italy’s sovereign credit ratings were cut, intensifying concern Europe’s debt crisis is worsening and may sour the outlook for exporters, banks and commodity producers. BHP Billiton Ltd. (BHP), the world’s biggest mining company, dropped 1.4 percent in Sydney as crude and metal prices tumbled. Rio Tinto Group, the second-largest miner by sales, fell 1.4 percent, extending losses yesterday. Sony Corp. slumped 4.3 percent, leading exporters’ shares lower after Japanese markets resumed trading following yesterday’s public holiday. China Unicom (Hong Kong) Ltd., the nation’s No. 2 mobile phone carrier, rose 2.5 percent in Hong Kong after boosting subscribers.
The MSCI Asia Pacific Index dropped 0.9 percent to 117.49 as of 11 a.m. in Tokyo, with almost three stocks declining for each that advanced on the index. The gauge has fallen for the past two weeks on concern Europe’s crisis is spreading and on signs of slowing U.S. economic growth. (Bloomberg)

World oil use seen up 27 percent by 2035
WASHINGTON, Sept 19 (Reuters) - The U.S. government on Monday said global oil consumption is likely grow by more than a quarter over the next quarter century, though proposed rules requiring automakers to improve fuel efficiency in the United States were not factored into the forecast.
World oil demand is expected to climb to 112.2 million barrels per day in 2035, the U.S. Energy Information Administration said in its annual international energy outlook. That would be up 27 percent from 88.20 million bpd in 2011 and is an increase of 1.4 percent over last year's EIA forecast.

Oil slumps for second day as euro fears dominate
NEW YORK, Sept 19 (Reuters) - Oil tumbled in a second day of heavy losses on Monday, with Brent crude reaching its lowest price in almost a month as escalating fears over the euro zone debt crisis triggered across-the-board selling of riskier assets.
"Markets are under pressure as the European finance ministers failed to come up with anything solid this weekend. There are some strong worries that Greece is not doing what's needed to get another round of aid," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

NYMEX-Natural gas ends up after overnight contract low
NEW YORK, Sept 19 (Reuters) - Front-month U.S. natural gas futures ended higher on Monday after hitting a 6-1/2-month low in overnight trade, as technical buying after key support held offset concerns about fading autumn demand and ample supplies.
"The weather right now is demand-neutral, and I think we do break lower if we get another big storage build this week, but I don't see prices falling much below the $3.70 area," Gelber & Associates analyst Pax Saunders told Reuters.

Euro Coal Prices dip $1/T with oil
LONDON, Sept 19 (Reuters) -     Prompt physical coal prices fell again on Monday by 50 U.S. cents to $1.00 a tonne in line with oil's drop but overall the market continued to look fairly stable, utilities and traders said.
"The DES ARA market is being well-defended, as usual, although prices have ticked down a touch and even the FOB Richards Bay market, which looked like it was going to collapse last week, seems a bit more stable today," one European trader said.

COMMODITIES- Gold up as safe-haven demand returns; sugar dives
NEW YORK, Sept 16  (Reuters) - Gold jumped for the first time in three days on Friday as safe haven demand resurfaced following weak U.S. economic data, while oil fell sharply on euro zone troubles and a stronger dollar.
"It's clear that any kind of negative outcome in Europe could be very dangerous indeed," said Nic Brown, a commodities analyst at London's Natixis.

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