GLOBAL MARKETS-Asia shares, euro fall on debt worry, FOMC eyed
TOKYO, Nov 2 (Reuters) - Asian shares fell and the euro hovered near three-week lows against the dollar on Wednesday, as investors shed riskier assets after Greece's abrupt call for a referendum rekindled fears about the viability of a European debt deal reached just last week. "European worries have re-emerged, which put pressure on U.S. stocks and will also pressure the market here," said Yumi Nishimura, senior technical analyst at Daiwa Securities.
Asian Stocks Decline for a Third Day as Greek Vote Threatens Debt Bailout (Bloomberg)
Asian stocks fell, with the regional benchmark index heading for its biggest three-day slide in a month, as concern heightened that Europe’s bailout of Greece will unravel and a report showed U.S. manufacturing slowed. James Hardie Industries SE (JHX), the building materials supplier that counts the U.S. as its biggest market, dropped 4 percent in Sydney. Nomura Holdings Inc. (8604) sank 4.4 percent after Japan’s largest brokerage said it will eliminate jobs part of a plan to cut costs following its first quarterly loss in more than two years. Samsung Heavy Industries Co., South Korea’s second- biggest shipbuilder by market value, tumbled 5.3 percent in Seoul after reporting a 53 percent slump in profit.
The MSCI Asia Pacific Index slipped 1.5 percent to 117.28 as of 10:52 a.m. in Tokyo, extending its three-day decline to 6 percent, the most since Sept. 26. The losses in the past three days are paring back last month’s 7.7 percent advance on concern a referendum pledged by Greek Prime Minister George Papandreou may threaten Europe’s bailout.
Japan Faces $510 Billion Losses From Yen Sales, JPMorgan Says (Bloomberg)
Japan’s government faces almost 40 trillion yen ($512 billion) in losses from intervening in the foreign-exchange markets to stem the yen’s advance, according to estimates by JPMorgan Chase & Co. Valuation losses on Japan’s foreign-exchange reserves minus yen liabilities totaled 35.3 trillion yen at the end of 2010, according to Finance Ministry data. The losses may swell further as the yen is projected to climb to 72 versus the dollar by September 2012, said Tohru Sasaki, head of Japan rates and foreign-exchange research at JPMorgan Chase in Tokyo. “It’s difficult to change the trend of the currency market” with intervention, said Sasaki, who used to work in the foreign-exchange division of the Bank of Japan, at a forum in Tokyo yesterday. “Even if the action can stem the currency’s gains temporarily, the yen will eventually appreciate.”
EU Leaders Hold Pre-G-20 Crisis Talks (Bloomberg)
European leaders racing to prevent their week-old debt crisis strategy from unravelling convene emergency talks today to tell Greece there is no alternative to the budget cuts imposed in the bailout plan. Greek Prime Minister George Papandreou, his hold on power weakening, was summoned to Cannes on the eve of a Group of 20 summit where he will hear from French President Nicolas Sarkozy that the “only way to resolve Greek debt problems” is through a deal hammered out last week in a six-day crisis-management marathon. Papandreou triggered the latest upheaval in the two-year- long crisis by abruptly announcing on Oct. 31 a parliamentary confidence vote and his desire to hold a referendum on the rescue pact. Global stocks, the euro and bonds of debt-strapped countries tumbled yesterday as concern of a disorderly Greek default mounted.
COMMODITIES-Markets tumble on Greek move; MF Global weighs
NEW YORK, Nov 1 (Reuters) - Commodities fell their most in a month on Tuesday as investors sold everything from oil to copper and cocoa after a deal to bail out Greece and the broader euro zone was thrown into disarray. "It was unrealistic to expect someone could suddenly wave a magic wand and expect everything to be alright," said Nic Brown, head of commodities research at Natixis in London, referring to last week's market euphoria after the deal announced for Greece.
Brent oil slips on EU turmoil, weak economic data
NEW YORK, Nov 1 (Reuters) - Brent crude prices edged lower on Thursday in volatile trade as a possible referendum in Greece on its debt bailout revived concerns about the euro zone and weak global economic data pointed to further slowing. "There was a pressure factor earlier this morning from MF Global with the inability to do trades with the local population," said Bill O'Neill, partner at NJ LOGIC Investment.
POLL-US crude stocks seen up on higher imports
Nov 1 (Reuters) - U.S. commercial crude stockpiles rose for a second consecutive week last week as imports continued to rebound, an expanded Reuters poll of analysts showed on Tuesday.
The survey of 12 analysts projected that crude oil stocks rose 1.1 million barrels on average for the week ended Oct. 28 after the U.S. Energy Information Administration reported a 4.74-million-barrel build for the week to Oct. 21 as imports climbed.
Libyan oil output hits 567,000 bpd - NOC
TRIPOLI, Nov 1 (Reuters) - Libya's oil production has risen to 567,000 barrels per day, the National Oil Corporation (NOC) chairman Nouri Berrouin told Reuters in an interview on Tuesday.
The Tuesday morning production report showed that output from Spanish oil and gas company Repsol's El Sharara field had risen to 90,000 bpd accounting for the bulk of the latest upturn in flows, he said.
Strong fuel demand growth to strain supplies
SINGAPORE, Nov 1 (Reuters) - Strong fuel demand growth from emerging economies will strain global supply and keep energy prices high even if demand from developed economies contracts, participants at a Singapore energy conference said on Tuesday. Demand has grown to 87 million barrels per day from around 84 million bpd in the past five years despite the 2008 financial crisis and ensuing recession, Jose Sergio Gabrielli, CEO of Brazilian state oil firm Petrobras , said.
Natural gas ends down 4 pct, milder forecast weighs
NEW YORK, Nov 1 (Reuters) - U.S. natural gas futures ended down sharply on Tuesday, pressured by sinking physical prices as milder Northeast and Midwest weather forecasts dimmed prospects for an early start to the heating season. "We're getting a warm up, so the market is soft and likely to stay that way until we get some sustained cold," a Pennsylvania-based trader said.
Euro Coal-Nov S.African trades at $104.75/
TLONDON, Nov 1 (Reuters) - European prompt physical coal prices fell by around $2.00 percent on Tuesday after the Greek decision to call a referendum over its debt bailout revived concerns about the euro zone, pumelling equities, the euro, copper and oil prices. "There are a few prompt cargoes now which it's not stretching things too much to call distressed - they're about to load and looking for buyers," one European trader said.
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