Thursday, October 6, 2011

20111006 1446 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian stocks up on Europe optimism, credit tightens
TOKYO, Oct 6 (Reuters) - Asian shares followed global stocks higher on Thursday, buoyed by a recovery across a broad range of assets on optimism over Europe's efforts to aid the region's financial sector and U.S. data suggesting the economy could avoid recession.
An easing of risk aversion, after an intensive sell-off earlier this week on fears that Europe's debt problems could trigger a new global financial crisis, helped boost commodities while tightening Asian credit markets sharply.

Asia Stocks Rise on Europe Outlook, Better-Than-Expected U.S Economic Data (Bloomberg)
Asian stocks rose for the first time in five days as better-than-expected U.S. economic data and optimism European leaders will contain the region’s debt crisis boosted the earnings outlook for exporters. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics, advanced 4.7 percent in Tokyo. Cathay Pacific Airways Ltd. (293), Asia’s largest international carrier, jumped 7.1 percent in Hong Kong. James Hardie Industries SE (JHX), a building-materials supplier that gets almost 70 percent of its sales from the U.S., climbed 8.2 percent Sydney. BHP Billiton Ltd. (BHP), the No. 1 global mining company, gained 3.3 percent as commodity prices advanced.
The MSCI Asia Pacific Index rose 2.8 percent to 110.36 as of 3:13 p.m. in Tokyo. About seven stocks advanced for each that fell and all 10 industry groups climbed, led by commodity producers and banks. The gauge tumbled 16 percent in the third quarter, the biggest drop since 2008, amid concern that Europe’s debt crisis and a U.S. economic slowdown will drag the world back into recession.

Japanese Stocks Rise, Snapping Four-Day Losing Streak, on Europe Optimism
Japanese stocks rose for the first time in five days on signs that European policy makers will act to contain the region’s sovereign debt crisis, boosting the earnings outlook for Asia’s exporters. Sony Corp. (6758), Japan’s biggest exporter of consumer electronics, rose 4.7 percent. Nissan Motor Co., a carmaker that gets 33 percent of its sales in the U.S. and Canada, gained 4.3 percent after a U.S. jobs report beat estimates. Aeon Co. advanced the most in seven months after the supermarket chain raised its profit forecast to a record following the acquisition of two domestic grocers. The Nikkei 225 (NKY) Stock Average rose 1.7 percent to 8,522.02 at the 3 p.m. trading close in Tokyo, snapping a four-day losing streak after French and Belgian officials said they had made progress on a plan to split up troubled lender Dexia SA. (DEXB) The broader Topix index gained 1.5 percent to 736.86.

COMMODITIES-Crude, copper, gold, grains rally after steep rout
NEW YORK, Oct 5 (Reuters) - Most major commodity markets rallied on Wednesday, after days of steep declines put prices at levels investors viewed as buying opportunities once European leaders agreed to examine the banking sector and U.S. government data suggested demand was still on the rise.
"With all of these markets the de-risking trade has predominated heavily in the last week or so. So, we may be getting a few people moving back into some of the metals especially, which got a bit overdone,"

Retreating food, fuel prices are best stimulus:Kemp
LONDON, Oct 5 (Reuters) - Sharp declines in prices for grains and gasoline will be the most effective stimulus for renewed growth, by easing the squeeze on household finances across North America and Western Europe, but only if price cuts can be sustained.
Relative declines in prices for food, clothing and fuel have been one of the big drivers of rising living standards since the end of World War Two, lifting millions out of poverty and freeing up a larger share of income for spending on other goods and services ranging from consumer electronics to college education and healthcare.

Oil rises 3 pct on drop in US inventories; Europe
NEW YORK, Oct 5 (Reuters) - Brent crude rose 3 percent on Wednesday to snap a three-day losing streak, lifted by government data showing big drops in U.S. inventories and by signs authorities were moving forward to prop up Europe's ailing banking sector.
While demand in top consumer the United States remained weak, data from the U.S. Energy Information Administration showed a steep drop in imports last week helped drive crude inventories to their lowest since January. Stockpiles of refined products also fell.
"The EIA reported better-than-expected numbers, particularly  the crude draw," said Joe Posillico, broker for MF Global in New York.

Colombia sees oil output recovering after protests
RUBIALES FIELD, Colombia, Oct 5 (Reuters) - Colombian Energy Minister Mauricio Cardenas said on Wednesday the nation expected oil production to recover to 950,000 barrels per day in October after demonstrations hit output last month.
Major oil companies in Latin America's No. 4 crude producer have been rocked this year by protests demanding more local jobs and social investment, which the industry sees as more of a threat than the rebels still plaguing the Andean nation.

Crude Oil Trades Near Four-Day High on Shrinking Supplies, U.S. Job Growth
Oil rose for a second day in New York as investors bet that shrinking crude stockpiles and signs of economic recovery indicate more demand for fuel. West Texas Intermediate futures gained as much as 0.7 percent after rising the most in almost five months yesterday. Inventories fell 4.7 million barrels, an Energy Information Administration report showed. Analysts surveyed by Bloomberg didn’t anticipate the drop, forecasting a gain of 1.5 million barrels. Data from ADP Employer Services showed U.S. companies added more jobs than predicted last month. Europe may boost bank capital to tame its debt crisis, an International Monetary Fund official said.
“A surprisingly positive U.S. EIA inventory report provided additional upside for WTI,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in a note today. “Commodity prices improved as European authorities appear to be stepping up support for European banks and U.S. private sector employment data was better than expected.”

NYMEX-Natural gas ends down 2 pct, front hits 11-mth low
NEW YORK, Oct 5 (Reuters) - U.S. natural gas futures ended lower on Wednesday, their fifth loss in six sessions, as mild weather forecasts and concerns about growing supplies again drove the front contract to another 11-month spot chart low.
"The futures market is continuing to slowly drift lower as the vast majority of the projections for the (EIA inventory) report are bearish,"

EURO COAL-Prices steady, outlook seen soft
LONDON, Oct 5 (Reuters) - Prompt physical coal prices were little changed on scant volume on Wednesday, while a lack of buying interest and worries over the health of the world economy weighed on the market.
"On the physical side there is a lack of genuine buyers. It's still the same guy who keeps buying but at lower levels, with no real Indian demand or Chinese demand because of holidays,"

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