Thursday, September 29, 2011

20110929 1127 Global Market & Commodities Related News.

GLOBAL MARKETS-Commodities slide, stocks fall on euro crisis fears
SINGAPORE, Sept 29 (Reuters) - Asian shares and commodities fell on Thursday on growing worries that Europe's intractable debt problems will plunge the world economy into a second global financial crisis.
"Due to the high degree of uncertainty about the European situation and its effects on economic growth, there were anxious market moves in the U.S., and we will see similar moves today," said Yutaka Miura, senior technical analyst at Mizuho Securities.

Treasuries Head for Quarterly Gain Before Pending Home Sales (Bloomberg)
Treasuries headed for the biggest quarterly gain since 2008 before an industry report on U.S. home sales that economists said will be the latest evidence that America’s economy is struggling. The government is scheduled to sell $29 billion of seven- year debt today, after a five-year sale yesterday drew a record- low yield, reflecting demand for the relative safety of debt as the economy slows and Greece struggles to avoid a default. The Federal Reserve is scheduled to begin its Operation Twist next month, a $400 billion program of long-term Treasury purchases. “Operation Twist will stop yields from rising,” said Kazuaki Oh’e, a debt salesman in Tokyo at CIBC World Markets Japan Inc., a unit of Canada’s fifth-largest lender. “The economy isn’t expanding. There’s no other place to park money.”

Japanese Stocks Fall as Division Among European Leaders Saps Confidence (Bloomberg)
Japanese stocks dropped, ending a two-day rally, amid concern divisions among European policy makers will hamper efforts to resolve the region’s debt crisis, damping the earnings outlook for Asian exporters. Honda Motor Co., a carmaker that gets 83 percent of its revenue abroad, fell 2.5 percent. Mitsubishi Corp. (8058), Japan’s largest commodities trader, slid 4.5 percent after oil and metal prices dropped. Tokyo Electric Power Co., the utility at the center of the worst nuclear disaster in 25 years, tumbled 14 percent after a report it won’t seek debt relief from banks. The Nikkei 225 (NKY) Stock Average fell 1 percent to 8,531.02 at the 11 a.m. trading break in Tokyo. The gauge has dropped 4.7 percent this month and is headed for its worst quarter since the three months ended June 2010. The broader Topix index slid 0.8 percent to 748.34 today.

Brent crude sinks under Greek debt weight
NEW YORK, Sept 28 (Reuters) - Brent crude resumed its downward trend on Wednesday, falling 3 percent as Europe's debt crisis continued to worry markets, while a larger-than-expected build in weekly U.S. crude oil inventories also weighed.
"There has been widespread liquidation across the grains, metals and oil markets ahead of the German Bundestag lower house of parliament vote on Thursday on whether to back new powers for the euro zone's rescue fund," said Phillip Streible, analyst at MF Global in Chicago.

Oil supply glitches to ease, weighing on Brent
LONDON, Sept 28 (Reuters) - The restart of Libyan oil exports and the prospect of other supply disruptions being resolved soon could weaken a pillar of support that has helped hold oil prices above $100 a barrel in the face of slowing economic growth.
This year's halt of oil supplies from Libya, production problems in the North Sea, and lower shipments from central Asia, Nigeria and Angola have all cut output, especially of high-quality crude oil.

NYMEX-Oct natural gas ends down nearly 2 pct at expiration
NEW YORK, Sept 28 (Reuters) - U.S. natural gas futures ended lower on Wednesday after two days of gains, with October expiring on a weak note amid expectations for a big jump in inventories and moderating weather that should slow demand.
"The fundamentals for gas (like record production) are still negative, but some of the selling could be in sympathy with the sell-off in oil and other commodities," said Steve Platt, analyst at Archer Financial in Chicago.

Euro Coal-Prices stable, China port stocks plunge
LONDON, Sept 28 (Reuters) - Prompt physical coal prices were little changed on Wednesday, despite falls in equities, oil and copper as investors awaited news on whether Greece will be allowed another round of aid.
"Prices are down but only slightly and mostly again for the very prompt month - the move minimal," one utility source said.

COMMODITIES-Markets dive again;Greece, dollar and qtr-end blamed
NEW YORK, Sept 28 (Reuters) - The selling of commodities resumed on Wednesday, after a one-day breather, as worries over Greece and a rebounding dollar returned to haunt investors.
"I think we are seeing more risk reduction here," said Carl Larry, director of energy research at New York-based Blue Ocean Brokerage.

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