Asian Stocks Drop on Slower China Manufacturing, Europe Concern (Bloomberg)
Asian stocks fell for a second day as China’s manufacturing grew at a slower pace and after Greek Prime Minister George Papandreou pledged to put the European Union’s agreement on financing for Greece to a referendum. Jiangxi Copper Co., China’s largest producer of the metal, declined 5 percent. HSBC Holdings Plc (HSBA), Europe’s biggest lender by market value, dropped 3.3 percent in Hong Kong on speculation a default by Greece will threaten bank earnings. Panasonic Corp. (6752) sank 5.1 percent in Tokyo as the maker of Viera televisions predicted its worst annual loss in 10 years. DeNA Co. tumbled 20 percent after the Japanese website operator posted profit that missed its own forecast. The MSCI Asia Pacific Index declined 1.9 percent to 119.5 as of 4:07 p.m. in Tokyo. The measure gained 7.7 percent last month, the most since Sept. 2010, as Europe appeared close to a deal to contain its debt crisis, reports showed the U.S. economy grew faster and China hinted at easier monetary policy.
Japan Stocks Drop Most in Month as Europe Concern Flares; Panasonic Slides (Bloomberg)
Japan’s Nikkei 225 Stock Average fell the most in a month after Panasonic Corp. (6752) forecast its biggest loss in a decade and Greek Prime Minister George Papandreou put Europe’s debt agreement at risk with a promise to let voters decide whether they’ll take the deal. Nissan Motor Co., which depends on Europe for 15 percent of its sales, slid 1.9 percent. Panasonic fell 5.1 percent after the electronics maker predicted a $5.3 billion loss amid falling television sales and restructuring costs. DeNA Co. tumbled by its daily limit after the website operator missed profit estimates. Fanuc Corp. (6954), a maker of industrial robots that counts Asia as its biggest market, declined 3.6 percent after a report showed China’s manufacturing expanded less than forecast.
The Nikkei 225 (NKY) Stock Average fell 1.7 percent to 8,835.52 at the 3 p.m. close in Tokyo, its steepest drop since Oct. 3. The broader Topix index sank 1.3 percent to 754.50. The gauge climbed 3.3 percent last week after Europe reached a debt deal that may now be in jeopardy.
Most China Stocks Drop on Manufacturing Slowdown; Anhui Conch, Poly Slump (Bloomberg)
Most Chinese stocks fell as a slowdown in the nation’s manufacturing growth overshadowed speculation that the government will soon ease monetary policies to spur the economic expansion. Anhui Conch Cement Co. and Baoshan Iron & Steel Co. led a retreat for industrial companies after the Purchasing Managers’ Index slid to 50.4 in October, the lowest since February 2009. Poly Real Estate Group Co., the nation’s second-largest developer, lost the most in two weeks after SouFun Holdings Ltd. said home prices fell for a second month amid price cuts. China Life Insurance Co., the biggest insurer, advanced 2.3 percent after UBS AG said a rebound for equities will boost profits. “The drop in PMI may shatter investors’ confidence and reignite concerns that earnings in the fourth quarter may be worse than expected,” said Wu Kan, a fund manager at Dazhong Insurance Co., which oversees $285 million. “Stocks may fluctuate at the current level.”
Euro debt worry hurts riskier assets; dollar firms
TOKYO, Nov 1 (Reuters) - Renewed worries about the slow progress in resolving the euro zone's debt crisis dampened investor appetite for risk, sending Asian shares and commodities lower while keeping pressure on the euro.
"The depth and breadth of unanswered questions from Thursday's EU deal, the spectacle of euro-peripheral bonds yields/yield spreads mostly higher on Monday and general support afforded the USD from the BOJ's intervention, ensured EURUSD traded down in fits and starts throughout Monday," BNP Paribas analysts wrote in a note.
European Stocks Drop as Greece’s Government Calls Referendum; Banks Tumble (Bloomberg)
European stocks dropped, for the Stoxx Europe 600 Index’s biggest plunge in four weeks, as the announcement of a Greek referendum spurred concern that the country may default. U.S. futures and Asian shares retreated. Credit Suisse Group AG (CSGN) plunged 8.6 percent, leading a selloff in lenders, after the Swiss bank reported earnings that missed analysts’ estimates. Danske Bank A/S slumped 7.1 percent after Denmark’s largest lender posted an unexpected loss. Mining companies tumbled after a gauge of Chinese manufacturing dropped to the lowest level since February 2009. The Stoxx 600 slid 3 percent to 236.29 at 8:29 a.m. in London, extending yesterday’s 2.2 percent selloff. Futures contracts on the Standard & Poor’s 500 Index lost 1.8 percent and the MSCI Asia Pacific Index tumbled 2.1 percent.
FOREX-Yen wary of more intervention; euro slumps
SINGAPORE, Nov 1 (Reuters) - The dollar held steady versus the yen on Tuesday, having pulled back from a three-month high as the impact of Japan's massive intervention faded a touch, while growing doubts over a plan to contain Europe's debt crisis weighed on the euro.
Trading in dollar/yen remained relatively choppy after Japan's yen-selling intervention on Monday, which major Japanese daily the Asahi newspaper said reached a record 10 trillion yen ($128 billion).
U.S. wheat up half pct after selloff; corn dips
SINGAPORE, Nov 1 (Reuters) - U.S. wheat rose around half a percent, while soybeans edged higher as the agricultural markets regained some ground on hopes of end-user demand following losses sparked by Europe's debt crisis.
"The market is quite aware of the fact that Ukrainian wheat crops are heading into winter dormancy period in too dry condition and there is concern over production prospects," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.
Sao Martinho takes stake in Brazil cane mill
RIO DE JANEIRO, Oct 31 (Reuters) - Brazilian sugar and ethanol producer Sao Martinho said it bought a 32 percent stake in cane mill Santa Cruz Acucar and an 18 percent stake in its agricultural management company Agropequaria Boa Vista for a combined 187.4 million reais ($110 million).
This is that latest in a long series of mergers and acquisitions that has swept through Brazil's cane industry since the financial crisis in 2008 weakened many over-leveraged mills to the point that they became soft takeover targets for deep-pocketed milling groups like Sao Martinho.
Argentine truckers reach deal, end Rosario strike
BUENOS AIRES, Oct 31 (Reuters) - Argentine trucking companies reached a deal on Monday to lift a strike that they had called at the country's main grains hub Rosario.
The work stoppage was called last week but had not been in force long enough to reduce exports from agricultural powerhouse Argentina, which is the world's No. 1 supplier of soyoil and soymeal and its No. 2 supplier of corn.
Cameroon cocoa bean exports up to 27,636 T in Sept
YAOUNDE, Oct 31 (Reuters) - Cameroon, the world's fifth largest grower, exported some 27,636 tonnes of cocoa in September, up from 9,777 tonnes the previous month, according to statistics from the National Cocoa and Coffee Board (NCCB), seen by Reuters on Monday.
The figures, which were confirmed by the Cocoa and Coffee Interprofessional Board (CCIB), showed a slight increase from 24,593 tonnes in the same month last season.
Ivorian cocoa arrivals pick up, quality a concern
ABIDJAN, Oct 31 (Reuters) - Ivorian cocoa arrivals picked up last week, and exporters said farmers had begun to sell some hoarded beans in order to pay school fees and prepare for an upcoming Muslim holiday, but bean quality was a concern.
Meanwhile, there were mixed weather reports from across the West African nation. Farmers in some areas complained that too much rain was causing disease to spread, while others said the balance of rain and sun was perfect.
Oil prices slip; market eyes FOMC, G20 meetings
PERTH, Nov 1 (Reuters) - Oil prices slipped on a stronger U.S. dollar, continuing uncertainty about the resolution of the euro zone's debt crisis and the collapse of MF Global Holdings.
"As cooler heads prevail and look around and actually start analysing the euro zone situation, they realise we still got a ways to go," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.
COLUMN-Drilling boom heralds big oil output rise: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Oct 31 (Reuters) - Soaring oil prices have spurred a worldwide drilling boom that should result in much-faster growth in oil production over the next 2-3 years, helping meet strong growth in consumption, and tempering upward pressure on prices.
The number of rotary rigs drilling for oil and gas stands at the highest level for over two decades, according to oilfield services company Baker Hughes.
COLUMN-UK solar power support is expensive folly-Gerard Wynn
--Gerard Wynn is a Reuters market analyst. The views expressed are his own.--
LONDON, Oct 31 (Reuters) - Britain took the right step on Monday by playing to its energy strengths and limiting the northerly country's support for solar, but will now need to deliver on offshore wind and long-mooted plans for carbon capture and storage (CCS).
The government on Monday announced plans to halve support for small-scale rooftop generation of solar power, saving an estimated 700 million pounds ($1.13 billion) annually by 2014-15.
COLUMN-Who's to blame for the iron ore rout? Andy Home
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Oct 31 (Reuters) - The price of spot iron ore has collapsed over the last couple of weeks.The Platts' 62 percent iron ore index , the most widely used of the spot market assessments, slumped by 19 percent last week alone to $116.75 per tonne. It has fallen by over $60 per tonne since September.
This is unprecedented. Quite literally.
COLUMN-Brent spreads point to easing oil market: John Kemp
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, Oct 31 (Reuters) - Global oil markets have softened significantly in the last two weeks as mounting evidence of slowing consumption and the resumption of Libyan oil exports eases fears about near-term shortages.
While tightening of U.S. oil markets and WTI's shift into a small backwardation has captured the headlines, the Brent market, which is more representative of global supply and demand trends, has moved briskly in the other direction.
London Metal Exchange suspends MF Global from trading
SINGAPORE, Nov 1 (Reuters) - The London Metal Exchange has suspended broker-dealer MF Global from trading on the exchange with immediate effect, the LME said in a statement.
MF Global filed for bankruptcy protection on Monday following bad bets on euro zone debt and London's LCH Clearnet declared it a defaulter.
Barclays commodities trade weaker amid volatility
LONDON, Oct 31 (Reuters) - Barclays Plc reported lower contributions from its commodities trading division in January-September 2011 after extreme volatility in oil and metals in the second and third quarters took a toll.
The results, which suggest increasing competition in the crowded sector, mirror weaker performance by major commodities players on Wall Street. They contrast with the improved performance of some European rivals.
Short supply to keep lifting metals prices-PDAC chief
HELSINKI, Oct 31 (Reuters) - Key metals like copper, iron ore and manganese may rise further in the long term as emerging countries are using more of them and reserves are decreasing, the head of a Canadian mining industry group said on Monday.
"Iron ore and all the real fundamentals are going to continue to rise, because there is finite amount of those metals," Scott Jobin-Bevans, president of the Prospectors and Developers Association of Canada (PDAC) told Reuters on the sidelines of a Finnish mining seminar.
Moody's cuts Europe steel outlook to "negative"
LONDON, Oct 31 (Reuters) - Ratings agency Moody's has cut its outlook for the European steel industry to "negative" and said it expects demand to weaken by up to 4 percent in the next 12 months, as the industry faces economic strain and weak construction and auto markets.
Weak developed markets, exacerbated by the euro zone debt crisis, and tight credit conditions in China -- the world's biggest steel consumer and producer -- have weighed on the sector, even if the costs of raw materials are falling.
BUY OR SELL-Will China rescue ailing iron ore price?
SYDNEY/SHANGHAI, Oct 31 (Reuters) - An unclear demand picture in China and the promise of additional supply are teaming up to drive down the price of iron ore, now in its eighth straight week of decline.
The "rust-red gold" that raced to a record $192 a tonne in February has lost a third of its value in the last month, sinking to $116.75 tonne, according to Platts , its lowest since July 2010.
Iron ore price drop to boost Chinese imports by sea
LONDON, Oct 31 (Reuters) - Weaker international iron ore prices are driving high-cost Chinese domestic suppliers to cut output, which will push the top consumer and steelmaker to rely more on seaborne imports in the coming weeks, supporting the dry freight market.
International iron ore prices have dropped more than 30 percent since September, including a record 18 percent plunge last week, as lower steel prices have forced Chinese steelmakers to cut production.
Iron ore price slump to deepen despite Indian supply cut
BEIJING/MUMBAI, Oct 31 (Reuters) - With demand from top buyer China still weak, global iron ore prices are not expected to recover in the next few weeks and may not yet be at their nadir despite a slump in deliveries from the world's third largest producer, India.
R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI) said on Monday that a precipitous drop in prices since September had made it hard for Indian suppliers to meet their high rail freight and export duty costs, forcing them to cut shipments to a minimum.
Brazil uranium output to rise six-fold this decade
BRASILIA, Oct 31 (Reuters) - Brazil is set to increase production of uranium six-fold in as many years to feed up to eight more nuclear plants the country could build by 2030, the state uranium miner said on Monday.
Industrias Nucleares do Brasil, INB, plans to double output at its Caetite mine in the northeastern state of Bahia in the next five years to 800 tonnes and start producing 1,500 tonnes per year from a new mine further north in the state of Ceara.
Copper down on China factory slowdown, euro zone woes
SHANGHAI, Nov 1 (Reuters) - London copper slipped on a stronger dollar and an unexpected slowdown in China's factory activity, with doubts over last week's euro zone bailout plan further dampening sentiment.
"The commodity and equity markets rose temporarily after the media reported President Hu Jintao's speech about being confident in the euro zone's ability to handle the crisis," said CIFCO Futures analyst Zhou Jie.
Another Australian nickel mine on block as metal price slips
SYDNEY, Nov 1 (Reuters) - Australian miner Kagara Ltd said on Tuesday it was talking to potential buyers for its nickel mine, the latest in a series of sales which could lead to further consolidation in the local sector as global prices for the metal falter.
Kagara, better known for its copper and zinc mines, did not name any suitors for its Lounge Lizard deposit in Western Australia state. The talks follow notification by Kagara's mining partner, Western Areas , that it was not interested.
METALS-Copper down on China factory slowdown, euro zone woes
SHANGHAI, Nov 1 (Reuters) - London copper slipped on Tuesday on a stronger dollar and an unexpected slowdown in China's factory activity, with doubts over last week's euro zone bailout plan further dampening sentiment.
Three-month copper on the London Metal Exchange fell 0.6 percent to $7,949 a tonne by 0344 GMT, after losing 2.3 percent in the previous session.
PRECIOUS-Gold steady on euro zone fear; firm dollar weighs
SINGAPORE, Nov 1 (Reuters) - Spot gold was steady on Tuesday, supported by safe-haven demand on resurfacing uncertainty over euro zone's resolution to its debt crisis, while a strong dollar weighed down on prices.
The euphoria over euro zone's plan to tackle its debt crisis faded, with Italian and Spanish bond yields soaring ahead of a key Group of 20 meeting that would likely press Europe on details of its debt solution.
Gold steady on euro zone fear; firm dollar weighs
SINGAPORE, Nov 1 (Reuters) - Spot gold was steady, supported by safe-haven demand on resurfacing uncertainty over euro zone's resolution to its debt crisis, while a strong dollar weighed down on prices.
"The European problems will resurface through the end of the year," said Dominic Schnider, head of commodity research at UBS Wealth Management in Singapore, expecting the safe-haven demand to help gold revisit a record high above $1,920 in the remaining months of the year.
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