Wednesday, October 12, 2011

20111012 1619 Global Market & Commodities Related News.

Asia shares edge up on China bounce, euro stalls
TOKYO, Oct 12 (Reuters) - A rebound in Hong Kong and Shanghai shares helped lift most Asian stocks into positive territory, but concerns that Europe's debt crisis has hurt confidence in the global economy and is weighing on corporate earnings limited gains.
"The broader trend is dictated by the problems in Europe, and Slovakia's rejection was negative to sentiment, as beefing up the fund is vital in providing a sense of security," said Hirokazu Yuihama, senior strategist at Daiwa Capital Markets.

China’s Stocks Rise Most in Year on Increased Government Support Prospects (Bloomberg)
China’s stocks rallied, spurring the biggest gain for the benchmark index in a year, on speculation the government is seeking to bolster the share market after valuations dropped to record low levels. Haitong Securities Co. led a rally for brokerages after Xinhua News Agency reported regulators approved cross-border exchange-traded funds. China Minsheng Banking Corp. surged the most in seven weeks as banks extended yesterday’s rally after Central Huijin Investment Ltd. began buying shares of lenders. Trainmakers CSR Corp. and China CNR Corp. rose more than 4 percent after the 21st Century Business Herald reported their parent companies may get cash injections from the government. The Shanghai Composite Index advanced 71 points, or 3 percent, to 2,420 at the close, the most since Oct. 15, 2010. The CSI 300 Index gained 3.6 percent to 2,644.76.

Europe Stocks Drop for Second Day on Slovakia (Bloomberg)
European stocks fell for a second day as political wrangling in Slovakia delayed the approval of the region’s overhauled bailout fund and Alcoa Inc. kicked off the American earnings season with profit that missed estimates. Asian shares gained and U.S. index futures declined. YIT Oyj, Finland’s biggest builder, slumped 7.5 percent after cutting its profit outlook. Fresnillo Plc (FRES), the world’s largest primary silver producer, slid 5.3 percent after lowering its full-year output target. ASML Holding NV (ASML) climbed 2.3 percent after Europe’s biggest semiconductor-equipment maker reported income that beat projections. The Stoxx Europe 600 Index dropped 0.8 percent to 233.42 at 8:22 a.m. in London. The gauge has tumbled 20 percent from its high on Feb. 17 amid concern that the sovereign debt crisis in Europe will spread from Greece to the larger economies of Italy and Spain. The MSCI Asia Pacific Index rose 0.2 percent today, while Standard & Poor’s 500 Index futures slipped 0.3 percent.

Japan manufacturing may emigrate-JFE Steel
PARIS, Oct 11 (Reuters) - Japan's manufacturing industry will have to shift production overseas as their margins are squeezed by a strong yen and higher costs than elsewhere in Asia, Eiji Hayashida, CEO and President of JFE Steel, told Reuters.
He said Japanese companies suffered from high corporate income tax, rigid employment regulation, an unfavourable exchange rate, aggressive targets for CO2 emission cuts, the slow progress of free trade agreement in Asia and high energy costs now that some nuclear energy has been cut.

Japan Aug machinery orders jump, outlook still dim
TOKYO, Oct 12 (Reuters) - Japan's core machinery orders jumped 11 percent in August, scoring their biggest gain in a year in a sign that a post-quake recovery continued to buttress the world's No. 3 economy in the face of a global slowdown and a strong yen.
The figure, a leading indicator of capital expenditure, may act as some solace to Japanese policymakers who are wary that Europe's debt crisis, the U.S. slowdown and the yen's rise may stall recovery from the March 11 earthquake and tsunami.

FOREX - Euro falls after Alcoa, Slovak vote
TOKYO, Oct 12 (Reuters) - The euro fell broadly on Wednesday, reversing its recent corrective rally made on hopes for a solution to the debt crisis, with fragile risk sentiment soured after the Slovak parliament rejected a plan to expand the euro zone rescue fund.
Tokyo exporters took the opportunity to sell the euro against the yen after the common currency had gained nearly 4 percent in the week, piling pressure on euro/dollar. Option barriers reported at 105 yen and $1.37 in the respective pairs also helped halt the recent rally.

US soy, wheat dip after rally, corn extends gains
SINGAPORE, Oct 12 (Reuters) - U.S. soybeans fell 0.7 percent , while wheat slipped 0.5 percent, trimming gains after last session's biggest rally in more than a year amid concerns over the euro zone debt crisis.
"It looks like profit-taking after gains last night or just rebalancing prior to the USDA report as no one wants to take a new position ahead of a report that could result in a limit down or limit up," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

Brazil 11/12 CS sugar output down 4 pct - Unica
SAO PAULO, Oct 11 (Reuters) - Sugar output from Brazil's center-south cane crop from the start of the season through the end of September was down 4 percent from a year earlier at 26 million tonnes, cane industry association Unica said on Tuesday.
But dry weather in the last two weeks of September allowed mills to boost production. Sugar output jumped 44 percent from the same period in 2010 when excess rains slowed harvest.

Rains in Argentina seen jump-starting corn planting
BUENOS AIRES, Oct 11 (Reuters) - Rains in Argentina's central agricultural areas over recent days should continue over the next few weeks, and have already helped restart corn plantings that had been slowed by dryness in September, a weather specialist said on Tuesday.
Argentina is the world's No. 2 corn supplier after the United States, gathering a record harvest of 22.9 million tonnes in the 2010/11 crop season, according to the government's most recent estimate.

French wheat sales to N.Africa seen lower in 11/12
ALGIERS, Oct 11 (Reuters) - France will almost halve soft wheat sales to Morocco in the 2011/2012 season because of lower output in France, the French grain export body said on Tuesday.
Jean-Pierre Langlois-Berthelot, chairman of France Export Cereales, also told Reuters that French soft wheat exports to Morocco's north African neighbour Algeria would slightly decline during the 2011/12 campaign.

Floods in Pakistan damage 3.7 pct of total crop area- FAO
MILAN, Oct 11 (Reuters) - Floods in Pakistan have damaged at least 880,000 hectares of standing crops, including rice, maize, cotton, sugar cane, fruit orchards and vegetables, which represent about 3.7 percent of total national crop area, the United Nations' food agency said on Tuesday, citing preliminary official estimates.
"Damage to the current paddy crop is moderate and is estimated by FAO and Pakistan's space agency (SUPARCO), as of 20 September, at about 252,700 tonnes, or 2.5 percent of the normal national production," the UN's Food and Agriculture Organisation (FAO) said in an update on the flood situation in Pakistan.

Firm price boosts Brazil cotton output, exports  
BRASILIA, Oct 11 (Reuters) - Brazil will play a bigger role in the global cotton supply in the coming years with a dramatic surge in output and rising exports of the fiber to its top trade partner China, a sector official told Reuters.
The Latin American country's production of the fiber shot up to 1.96 million tonnes in 2011 from 1.2 million tonnes the year before, according to official data. Recent heavy capital investments signal these higher levels could be here to stay.

Oil below $111 on demand forecast cut, euro zone woes
SINGAPORE, Oct 12 (Reuters) - Brent crude fell, snapping five days of gains, after OPEC cut its global oil demand forecast and plans for greater powers for a euro zone bailout fund hit a snag, rattling investor confidence.
"We have seen quite a good bounce and traders are squaring positions ahead of Chinese data due on Friday," said Michael McCarthy, chief markets strategist at CMC Markets.

China sets ambitious shale gas output targets-paper
BEIJING, Oct 12 (Reuters) - China plans to produce 6.5 billion cubic metres (bcm) of shale gas by 2015 and aims for 80 bcm by 2020, an official with top Chinese oil and gas producer China National Petroleum Corporation (CNPC) was quoted as saying by Chinese media.
The plan, mainly compiled by the National Energy Administration, will likely be disclosed to the public in the near future, the China Securities Journal said in a report on its website.

Libya says oil output to hit 1 million bpd
TRIPOLI, Oct 11 (Reuters) - Production from a Libyan oil field will restart within days and the country should be able to pump 1 million barrels per day (bpd) within a year, the interim oil and finance minister said on Tuesday.
In an interview with Reuters, Ali Tarhouni said he had received a phone call the previous evening saying the huge El Sharara oil field operated by Spanish firm Repsol was ready to restart and he expected it to resume pumping within days. It produces 200,000 bpd.

World oil demand may be stronger than expected-IEA
LONDON, Oct 11 (Reuters) - Global oil demand may be more robust than expected, even with a slowdown in economic growth in the United States and Europe, the chief economist of the International Energy Agency (IEA) said on Tuesday.
Fatih Birol told Reuters on the sidelines of an oil industry conference that fuel consumption in Asia and in the Middle East was holding up fairly well.

Next OPEC meeting to be more harmonious
LONDON, Oct 11 (Reuters) - OPEC's secretary-general said on Tuesday he expected the group to reach a consensus on output policy when it meets in December, after it rattled oil markets when its last meeting ended in acrimony and without a deal.  
Abdullah al-Badri also told Reuters Insider television that oil prices at or over $100 a barrel were "reasonable," suggesting the Organization of the Petroleum Exporting Countries will not rush to adjust supplies.

Alcoa sees strong aluminum use, despite price drop
NEW YORK, Oct 11 (Reuters) - Alcoa Inc  expects global demand for aluminum to hold up into the fourth quarter despite a falling metal price and fears the global economy may slip back into recession.
"Alcoa remains a confident company in a very nervous world," said Chief Executive Officer Klaus Kleinfeld on Tuesday, adding that he thought the world was almost worrying itself into another recession.

Alcoa profit hurt by slowdown, recession fears
Oct 11 (Reuters) - Alcoa Inc , the largest U.S. aluminum producer, said an economic slowdown hurt demand and knocked prices for the metal lower, denting its third-quarter profit and sending its shares down in after-hours trading.
CEO Klaus Kleinfeld warned of weak economic conditions through the year, particularly in Europe, "as confidence in the global recovery faded."

China bank to invest $1.5 bln in Russian smelter-VEB
BEIJING, Oct 11 (Reuters) - Russian state bank VEB and China Development Bank (CDB) will on Tuesday sign a deal under which CDB will invest $1.5 billion in building the first stage of UC RUSAL's  750,000-tonne Taishet aluminium smelter, VEB head Vladimir Dmitriev said.
RUSAL, the world's largest aluminium producer, confirmed that an agreement on project financing had been reached but provided no further details ahead of a signing ceremony later during Prime Minister Vladimir Putin's visit to Beijing.

First Uranium sales rise quarter-on-quarter
Oct 11 (Reuters) - First Uranium  said on Tuesday that its second-quarter gold sales rose 17.7 percent from the prior quarter and it is maintaining its full year outlook despite problems at both its projects in South Africa.
Gold sales in the second quarter, ended Sept. 30, rose to 40,529 ounces from 34,438 ounces in its first quarter. In the same period, uranium production rose 76.8 percent to 36,006 pounds from 20,361 pounds.

European tin premiums higher on tight market
LONDON, Oct 11 (Reuters) - Premiums for physical tin in Europe rose this week, supported by market tightness but concerns about the demand outlook for metals in light of a slowdown in the global economy could weigh, traders said.
Traders quoted premiums for Chinese material  -- paid over the London Metal Exchange (LME) cash price  -- at $700-750 a tonne versus $600-700 quoted previously.

Indonesia tinplate maker sees higher 2012 capacity
JAKARTA, Oct 11 (Reuters) - Output at Indonesia's only tinplate producer will slip almost 10 percent this year as improvement works begin this month, in a project that will help ramp up capacity for 2012 by nearly a quarter, a director at the firm said on Tuesday.
PT Pelat Timah Nusantara Tbk , also known as PT Latinusa Tbk, produced 110,000 tonnes of tinplate last year and this is forecast to fall to 100,000 tonnes in 2011, Hideyuki Iwasaki, deputy of finance director, told Reuters.

Europe's steel appetite to slow next year
PARIS, Oct 11 (Reuters) - European steel consumption growth will slow down in 2012 due a decline in manufacturing, Gordon Moffat, director general of the European steel producers association Eurofer said on Tuesday.
"We anticipate a consumption levels to grow by 6 percent this year and by less next year, probably 2 or 2.5 percent because of the decline in manufacturing," Moffat told Reuters in an interview.

Copper lifted by gains in Shanghai equities
SHANGHAI, Oct 12 (Reuters) - Copper prices rose lifted by steep gains in Shanghai equities, short-covering and rapid restocking by Chinese consumers, but concerns about the global economy continued to weigh on the market.
"Shanghai equities are performing well at the moment and giving base metals a lift. If LME copper doesn't breach $6,800, we should remain in a technical rebound stage in the short-term," Shanghai Dongzheng Futures trader Du Xiao Hua said.

PT Timah resumes tin ingot exports again
JAKARTA, Oct 11 (Reuters) - Indonesia's state-owned PT Timah , the world's largest integrated tin miner, has started to again export tin ingot -- breaking a stoppage agreed by smelters last month, an official said on Tuesday.
Since Oct. 1, Indonesian tin smelters in Bangka island, have put in place a self-imposed export ban, with the aim of pushing prices above $25,000 a tonne.

METALS - Copper lifted by gains in Shanghai equities
SHANGHAI, Oct 12 (Reuters) - Copper prices rose on Wednesday lifted by steep gains in Shanghai equities, short-covering and rapid restocking by Chinese consumers, but concerns about the global economy continued to weigh on the market.
Investors were also cautious ahead of data due out this week which is likely to show China's copper and iron ore imports have softened, indicating a slowdown in the world's second largest economy and biggest industrial metals consumer.

PRECIOUS - Spot gold flat; Asia's physical demand underpins
SINGAPORE, Oct 12 (Reuters) - Spot gold traded flat on Wednesday, as investors waited for cues from further developments in the euro zone's debt crisis, and robust physical demand in Asia underpinned the sentiment.
Slovakia's parliament voted against the expansion of the euro zone's rescue fund, but the move is unlikely to dampen confidence the euro zone will come up with solutions to its debt crisis.

Spot gold flat; Asia's physical demand underpins
SINGAPORE, Oct 12 (Reuters) - Spot gold traded flat , as investors waited for cues from further developments in the euro zone's debt crisis, and robust physical demand in Asia underpinned the sentiment.
"Slovakia is not a big enough player to get in the way," said a Singapore-based trader.

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