Asian Stocks Tumble as Crisis Hits Italy; Banks, Exporters Dive (Bloomberg)
Asian stocks plunged, with the regional benchmark index heading for its biggest drop in two months, after Japan’s machinery orders dropped and signs emerged that Europe’s sovereign debt-crisis has infected Italy. HSBC Holdings Plc (HSBA), Europe’s largest lender by market value, sank 8 percent in Hong Kong on speculation bank earnings will be hurt if Europe fails to contain the debt crisis. Fanuc Corp. (6954), a maker of industrial robots, slipped 3.7 percent in Tokyo. Noble Group Ltd. (NOBL) slumped 23 percent in Singapore, the biggest plunge since 1998, as Chief Executive Officer Ricardo Leiman quit after the Hong Kong-based commodity supplier posted its first loss in 14 years.
“The big concern is that Italy will need to get its funding from other sources than the market, but because of its size, people are very worried,” said Stephen Halmarick, Sydney- based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion. “The outcome of all this is the European economy will go into recession. That’s a big negative.”
China Exports Slow as Europe Clouds Global Outlook (Bloomberg)
China’s exports rose at the slowest pace in almost two years in October as Europe’s deepening debt crisis crimped demand, adding pressure on policy makers to support growth in the world’s second-biggest economy. Overseas shipments rose 15.9 percent from a year earlier, customs bureau data showed today. The trade surplus was $17 billion, lower than all 24 estimates in a Bloomberg News survey. Imports climbed a more-than-forecast 28.7 percent. Asian stocks slumped after a jump in Italian bond yields fanned concern Europe’s currency union will unravel and cause a recession in China’s largest export market. Chinese data yesterday showing inflation slowed, home sales fell and industrial output cooled have added to the case for the government to ease credit controls and roll out more measures to support growth.
GLOBAL MARKETS-Stocks dive as bond yields drive Italy to the brink
SINGAPORE, Nov 10 (Reuters) - Asian stocks fell on Thursday after soaring Italian borrowing costs stoked fears the euro zone's third biggest economy will be forced to seek a bailout, overwhelming the bloc's finances and raising the risk of a break-up of the currency area.
Italian 10-year bond yields rose above 7 percent on Wednesday, a level most market economists consider unsustainable for financing debt of more than 2 trillion euros.
COMMODITIES-Europe, dollar break oil rally; crops down too
NEW YORK, Nov 9 (Reuters) - Oil prices fell sharply on Wednesday after several days of gains, as Europe's deepening fiscal crisis sent the dollar surging against the euro, weighing on commodities priced in the U.S. currency.
"People are scared that Italy's too big to bail out," said Michael Hewson, analyst at CMC Markets. "It's driving people out of risky assets and it's reinforcing fears about a double-dip recession, which will hit demand-sensitive assets like oil."
Crude falls on Europe woes, shrugs U.S. draws
NEW YORK, Nov 9 (Reuters) - Crude oil futures slumped more than 2 percent Wednesday as Europe's debt crisis worsened, outweighing U.S. government data that showed unexpectedly large drawdowns in domestic crude and product stockpiles.
"People are scared that Italy's too big to bail out," said Michael Hewson, analyst at CMC Markets. "It's driving people out of risky assets and it's reinforcing fears about a double-dip recession, which will hit demand sensitive assets like oil."
Natural gas ends down, strip hits 9-year low
NEW YORK, Nov 9 (Reuters) - U.S. natural gas futures ended down sharply on Wednesday, with concerns about growing supplies and fairly mild Northeast and Midwest weather forecasts driving most months to new contract lows for the third straight day.
"The weather looks kind of mild, and that's a problem (for the bulls). There's no abnormal cold around yet," a Texas-based trader said.
US may delay pipeline decision past 2012 election
WASHINGTON, Nov 9 (Reuters) - The United States may choose to reroute a proposed Canada-to-Texas oil pipeline, a move that could defer a decision on approving the politically charged project beyond the 2012 U.S. election, a U.S. official said on Wednesday.
Studying a new route for the Keystone XL pipeline, which is opposed by many environmentalists and backed by industry, could take 12-18 months, the official said. That would put a final decision after President Barack Obama's re-election bid in November 2012.
IEA fears oil spike; OPEC dreads European defaults
LONDON, Nov 9 (Reuters) - Oil prices could hit economically damaging record highs if unrest in Africa and the Gulf cuts investment in output, the West's energy watchdog warned oil producers, which said the real problem was likely defaults among euro zone members and banks.
The International Energy Agency (IEA), which advises major oil-consuming countries on energy policies, said on Wednesday oil prices could spike by a third to above their all-time high of $147 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) said the main risks were of price falls.
Euro Coal-Prices dip $2 with oil, no trades seen
LONDON, Nov 9 (Reuters) - Prompt physical coal prices dropped by $2 a tonne on Wednesday, in line with oil's fall, but activity was limited and no fresh trades were reported.
"The market's off by $2 but it's done absolutely nothing which is typical with a big price move," one European trader said.
No comments:
Post a Comment