Thursday, October 13, 2011

20111013 1115 Global Market & Commodities Related News.

GLOBAL MARKETS-Stocks, euro rally on fund progress, momentum
NEW YORK, Oct 12 (Reuters) - World stocks advanced for a sixth straight day on Wednesday and the euro rose against the U.S. dollar after the final nation in the euro zone reached a deal to strengthen a regional bailout fund, boosting investor confidence.
"It feels as though the market is experiencing the possibility of a melt-up," said Hank Smith, chief investment officer of Haverford Trust Co in Philadelphia.

Asian Stocks Rise as European Debt Plan, U.S. Fed Buoy Recovery Confidence (Bloomberg)
Asian stocks rose for a sixth day as European leaders edged closer to a plan for taming the debt crisis and the U.S. Federal Reserve said it discussed more asset purchases, reducing concern about a global recovery. Honda Motor Co., Japan’s second-largest automaker by revenue, rose 1.9 percent in Tokyo. Sony Corp. added 3.8 percent, even after saying it recalled 1.6 million Bravia flat- panel TVs. Korea Zinc Co. jumped 4.9 percent in Seoul. BHP Billiton Ltd. (BHP), the world’s biggest mining company, gained 0.8 percent in Sydney after metal prices rallied yesterday. Iluka Resources Ltd. (ILU), the world’s biggest zircon producer, surged 5.5 percent after saying third-quarter sales more than doubled.
The MSCI Asia Pacific Index rose 1 percent to 117.36 as of 10:41 a.m. in Tokyo, taking its advance in the past six days to 9.2 percent. The gauge climbed this week after German Chancellor Angela Merkel and French President Nicholas Sarkozy pledged to deliver a plan to recapitalize banks and address Greece’s debt crisis.

COMMODITIES-Oil, metals gain on likely euro zone deal
NEW YORK, Oct 12 (Reuters) -  Most major commodities, including oil, precious metals and copper jumped on Wednesday, along with U.S. equity indexes and the euro, as it seemed euro zone debt challenges were moving toward a resolution and would avert a crisis.
"The key driver has come from China," said Nicholas Snowdon, analyst with Barclays Capital in New York. "We are beginning to see signs of a pick-up in Chinese buying post the Golden week holiday. Buying today is noticeably higher."

U.S. oil inventories and random noise: John Kemp
-- John Kemp is a Reuters market analyst. The views expressed are his own --
LONDON, Oct 12 (Reuters) - The American Petroleum Institute (API) accelerated publication of its own weekly oil numbers almost three years ago in a bid to improve their relevance and stop them being eclipsed by the official numbers published by the Energy Information Administration (EIA).
Given their improved accuracy, the data has started to attract more notice, and some observers wonder if they could eventually acquire the same market-moving potential. Unfortunately, the answer is almost certainly "No."

Brent rises a 6th session eyeing euro zone, Iran
NEW YORK, Oct 12 (Reuters) - Brent crude rose on Wednesday, posting an 11.6 percent gain over six sessions, as Slovakian lawmakers appeared ready to approve an EU plan to strengthen the euro zone rescue fund.
"U.S. crude failed to push above Tuesday's high and the Brent spread to U.S. crude has been trading in that $22 to $27 range and is being pushed up today, helped by Shell's force majeure on Nigerian oil," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

US defends deal to boost auto fuel efficiency
WASHINGTON, Oct 12 (Reuters) - The Obama administration on Wednesday pledged transparency in setting standards to boost auto fuel efficiency and cut tailpipe emissions, countering claims that a landmark agreement securing automaker support for its environmental initiative was secretive.
The agreement reached in July is the foundation of a planned rule requiring that new cars sold in the United States nearly double average fuel efficiency by 2025 to 54.5 miles per gallon. The administration said the formal regulation was a work in progress and would provide opportunity for outside input.

U.S. oil diplomacy targets consumer demand
ASTANA, Oct 12 (Reuters) -  The United States will press major oil-producing nations to ensure they are pumping enough oil to meet demand, regardless of price, while also encouraging a recovery of oil output from Libya and Iraq, a senior energy department official said on Wednesday.
"We don't assess the supply and demand equation as a function of price per se," U.S. Deputy Secretary of Energy Daniel Poneman told Reuters in an interview. "We look at satisfying consumer demand."

Saudi oil exports under threat from within
DUBAI, Oct 12 (Reuters) - The world may have to live on a lot less Saudi Arabian crude towards the end of this decade as rampant internal demand eats into oil exports and the kingdom's alternative energy plans may prove too little too late.
The top crude exporter is already burning more than 10 percent of its output in power plants on hot summer days. Meanwhile huge fuel subsidies, which have helped sedate Saudi social unrest throughout the Arab Spring, are exacerbating a demand boom that is lapping up the world's largest oil reserves.

Natural gas ends down 3.5 pct on weather, storage
NEW YORK, Oct 12 (Reuters) - Front-month U.S. natural gas futures ended down sharply on Wednesday, with mild weather and expectations for a big weekly storage build on Thursday forcing buyers to pull back after two straight higher sessions.
"The market's been trying to find a (seasonal) bottom, but we're in a period of moderate (weather) demand, and there's plenty of gas around," a Texas-based trader said.

EURO COAL-Prices dip, trade remains thin
LONDON, Oct 12 (Reuters) - Prompt physical coal prices fell slightly by around 25 U.S. cents a tonne on Wednesday after a day of quiet trade.
"It's hard to see the market's direction clearly," said Emmanuel Fages, analyst with Societe Generale in Paris.

Gold Climbs for Second Day as Optimism on Europe Bialout Fund Boosts Euro
Gold advanced for a second day as expectations that Slovakia will approve Europe’s enhanced bailout fund strengthened the euro and increased the appeal of the metal priced in U.S. dollars. Bullion for immediate delivery climbed as much as 0.5 percent to $1,684.38 an ounce and traded at $1,681.48 at 9:24 a.m. in Singapore. It reached $1,692.18 an ounce yesterday, the highest price since Sept. 23, as the dollar dropped. “Gold gained, buoyed by a weaker dollar,” Natalie Robertson, an analyst at Australia & New Zealand Banking Group Ltd., wrote in a note today.
Slovakia, the only country in the 17-nation euro area that hasn’t approved an enhanced European Financial Stability Facility, will complete approval today or tomorrow after its largest opposition party backed the motion. European Commission President Jose Barroso yesterday called for support for crisis- hit banks, the payout of a sixth loan to Greece and a faster start for a permanent rescue fund.

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