Wednesday, November 23, 2011

20111123 1610 Global Market & Commodities Related News.

Asian Stocks, Oil Drop on Economic Concerns; Mining Shares Sink
Nov. 23 (Bloomberg) -- Asian stocks fell to the lowest in more than six weeks while U.S. equity futures and oil dropped on concern global economic growth will falter amid Europe’s debt crisis. Shares of Australian mining and steel companies slumped as the nation’s lower house of parliament passed a resources tax. The MSCI Asia Pacific excluding Japan Index sank 2.1 percent at 1:07 p.m. in Hong Kong, set for the lowest close since Oct. 6, and Australia’s S&P/ASX 200 Index retreated 1.8 percent. Standard & Poor’s 500 Index futures slipped 1.2 percent. Oil fell 1.1 percent in New York. The Australian dollar weakened against all 16 major counterparts, South Korea’s won tumbled a fourth day, and the euro declined versus the dollar and yen. The cost of insuring Asia-Pacific debt from non-payment rose. Data today showed China’s manufacturing may have contracted this month, and separate figures may show European manufacturing and services shrank and U.S. durable goods orders fell.
Figures yesterday showed the world’s largest economy grew less than estimated last quarter, amid minutes from the Federal Reserve’s last meeting that showed some policy makers thought monetary easing may be necessary. “What we’re seeing is stalling speed in the U.S.,” Viktor Shvets, a Hong Kong-based strategist at Samsung Securities Co., said in a Bloomberg Television interview. “The euro zone is clearly heading into recession.”  More than seven shares declined for every one that gained in MSCI’s Asia Pacific ex-Japan Index. South Korea’s Kospi index sank 2.2 percent, Hong Kong’s Hang Seng Index slid 1.8 percent and China’s Shanghai Composite Index decreased 0.5 percent. Japan’s financial markets are closed for a holiday today.

Shares slide on China flash PMI, US growth fears
SINGAPORE, Nov 23 (Reuters) - Asian shares, U.S. futures and oil fell as a weak Chinese manufacturing survey renewed fears of a hard landing for the world's No. 2 economy, exacerbating worries about faltering global growth following a downward revision of U.S. GDP data.
"If it gets much thinner, it's going to stop," said Martin Angel, a dealer at Patersons Securities in Perth.

China Manufacturing May Shrink This Month (Bloomberg)
China’s manufacturing may contract this month by the most since March 2009 as home sales slide, adding to evidence the world’s second-biggest economy is slowing, a preliminary purchasing managers’ index shows. The reading of 48 reported by HSBC Holdings Plc and Markit Economics today compares with a final number of 51 last month. A number below 50 indicates a contraction. Europe’s sovereign-debt crisis threatens to cut export demand just as small businesses complain of a credit squeeze, and Premier Wen Jiabao’s campaign to cool home prices triggered a 25 percent slump in sales last month. Today’s Chinese data indicated easing inflation pressures that leave more room for measures to boost growth after the U.S. yesterday reported a weaker-than-estimated expansion.

Hong Kong Stocks Fall, Headed for Six-Week Low on U.S. Economy
Nov. 23 (Bloomberg) -- Hong Kong stocks fell, with the Hang Seng Index headed for its lowest close in six weeks, after a report showed the U.S. economy expanded less than economists estimated, damping the outlook for Asian exporters. Li & Fung Ltd., a clothing and toy supplier that gets 65 percent of its sales in the U.S., slid 3.3 percent. China Resources Land Ltd., a state-controlled developer, lost 2.3 percent on concern property sales are declining. Asian Citrus Holdings Ltd., an operator of orange plantations in China, sank 4.4 percent after a report the company plans to raise money by placing shares. This was denied by the company’s finance director. The Hang Seng Index fell 1.9 percent to 17,906.96 as of 10:02 a.m. local time, headed for its lowest close since Oct. 10. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong retreated 2.6 percent to 9,496.96. Futures on the Hang Seng Index slid 1.5 percent to 17,898.
The HSI Volatility Index gained 1.1 percent to 34.91, indicating options traders expect a swing of 10 percent in the benchmark over the next 30 days.

FOREX-Dollar up on Dexia rescue doubts, weak China data
SINGAPORE, Nov 23 (Reuters) - The dollar rose broadly on Wednesday as the euro dipped on jitters over the fate of a rescue plan for Franco-Belgian bank Dexia, while the Australian dollar fell on data showing China's factory activity slumped to a 32-month low.    
"With all the woes in EU, I cannot help to be bearish euro versus the dollar," said a trader for a Japanese bank in Singapore.

Corn, wheat steady as crude's gain offsets euro zone worries
KUALA LUMPUR, Nov 23 (Reuters) - U.S. grain futures were steady in Asian trade, holding on to gains from the previous session, as high crude oil prices outweighed concern that Europe's sovereign debt crisis will slow global economic growth and curb consumption.
High crude prices may increase demand for bio-diesel, boosting competition for grains such as corn and soybeans.

Brazil sugar expansion slows, other origins emerge
SAO PAULO, Nov 22 (Reuters) - The expansion of Brazil's world leading sugar sector to meet growing international demand is set to slow and other origins will emerge as suppliers, delegates at an industry conference said on Tuesday.
Farideh Bromfield, head of commodity research at trade house ED&F Man, said at the Datagro conference that Brazil's roller coaster expansion as a sugar exporter was set to decelerate in the face of buoyant global demand.

EU may extend zero import duty on feed wheat, barley
BRUSSELS, Nov 22 (Reuters) - The European Union's cereals management committee may vote on Thursday to extend the suspension of the bloc's import duties on feed wheat and barley until June 30 2012, a draft agenda of the meeting seen by Reuters showed.
In June, the EU suspended its import duties of 12 euros per tonne for low- and medium-quality wheat and 16 euros a tonne for feed barley until Dec. 31, in response to a spring drought that hit supplies of animal fodder.
 
Brazil cane industry confronts its output limits
SAO PAULO, Nov 22 (Reuters) - Brazil's once booming cane sector is coming to grips with its own limits and curbing unrealistic expectations, after a frustrating harvest and a still unclear investment environment ahead.
After the years of euphoria that ended with the 2008 global financial crisis, the industry is now adopting a more relaxed approach when talking about prospects for sugar and ethanol production over the next few years. Demand forecasts however remain bright.

India agrees 1 mln tonnes of sugar exports-minister
NEW DELHI, Nov 22 (Reuters) - India has decided to allow one million tonnes of white sugar exports, Trade Minister Anand Sharma said on Tuesday, double initial expectations from the world's second-biggest producer and sending global prices lower. "We have to balance the interest of farmers, consumers and the industry. There was a demand for three million tonnes but we allowed only one million tonnes, keeping in view the interest of all the stakeholders," Food Minister K. V. Thomas told reporters.
 
Importers turn to palm oil from soyoil - Oil World
HAMBURG, Nov 22 (Reuters) - Uncompetitive soyoil prices and tight export supplies are pushing consumer demand towards cheaper palm oil and sunflower oil, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Soyoil has lost price competitiveness against palm and sun oil, Oil World said. Palm oil is currently about $100 cheaper than U.S. fob soyoil prices and $60 cheaper than Brazilian and Argentine soyoil, Oil World data shows.

Brent oil falls near $108 as U.S., China growth slows
SINGAPORE, Nov 23 (Reuters) - Brent crude fell near $108 as data from the United States and China showed a slowdown in economic growth, stoking fears of weaker demand from the world's two largest oil users.
"The short-term reaction will be negative, but China will probably start monetary easing measures that will be positive for commodities in the medium term," ANZ analyst Natalie Robertson said.

Venezuela-China oil firms to boost output by 2014
CARACAS, Nov 22 (Reuters) - Oil companies formed as joint ventures between Venezuela and China will produce 1.1 million barrels per day (bpd) by 2014, up from 112,000 bpd at present, Venezuelan Oil Minister Rafael Ramirez said on Tuesday.
Ramirez said that Venezuela and China have agreed on the terms for a new Chinese loan worth $4 billion for oil projects and that the agreement will be signed on Wednesday by socialist President Hugo Chavez.

Copper cuts gains on weak China factory data
SINGAPORE, Nov 23 (Reuters) - Copper trimmed gains after data showing factory activity in top consumer China fell to its lowest in 32 months, but hopes that the weak numbers may prompt Beijing to relax monetary policy kept the metal firm.
"It's a weak number and well below expectations. Copper certainly trimmed gains on the back of it. We could see more weakness in prices later in the day, but this data must spur the Chinese authorities to loosen policy," said Nick Trevethan, senior commodities strategist at Australia and New Zealand Bank.

Australia's mining tax passes biggest political hurdle
CANBERRA, Nov 23 (Reuters) - Australia's plan to impose a 30 percent tax on its booming iron ore and coal sectors cleared its biggest political hurdle on Wednesday when legislation passed parliament's lower house after a last-minute deal to win support from the influential Greens.
The vote is a major victory for Prime Minister Julia Gillard's Labor Party after 18 months of acrimonious debate that brought down former prime minister Kevin Rudd. Mining companies ran a public campaign against his original 40 percent tax plan.
 
Refined copper deficit 161,000 T in Jan-Aug - ICSG
LONDON, Nov 22 (Reuters) - The world refined copper market was in deficit of 161,000 tonnes in the first eight months of the year, compared with a deficit of 339,000 tonnes in the same period last year, an industry report showed on Tuesday.
The global refined copper market was in a production deficit of 45,000 tonnes in August, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

Global copper demand remains robust -Aurubis
HAMBURG, Nov 22 (Reuters) - Global copper demand remains firm despite fears of an economic slowdown and key consumer China is likely to raise imports again in November, Aurubis , Europe's biggest copper producer, said on Tuesday.
"The general view that demand is suffering due to economic concerns does not seem to fit with the inventory trend in the metal exchange warehouses," Aurubis said in a report. "Copper production does not meet the requirements."

METALS-Copper cuts gains on weak China factory data
SINGAPORE, Nov 23 (Reuters) - Copper trimmed gains on Wednesday after data showing factory activity in top consumer China fell to its lowest in 32 months, but hopes that the weak numbers may prompt Beijing to relax monetary policy kept the metal firm.
"It's a weak number and well below expectations. Copper certainly trimmed gains on the back of it. We could see more weakness in prices later in the day, but this data must spur the Chinese authorities to loosen policy," said Nick Trevethan, senior commodities strategist at Australia and New Zealand Bank.

PRECIOUS-Gold hovers around $1,700; euro zone eyed
SINGAPORE, Nov 23 (Reuters) - Gold prices traded steady around $1,700 on Wednesday, after buying related to options' expiration lifted prices by more than 1 percent in the previous session, as investors continue to watch the unfolding euro zone debt crisis.
"Prices will probably trade between $1,680 to $1,700 for the rest of the week as investors prefer to stay out of the market with cash in hand," said Ronald Leung, a dealer at Lee Cheong Gold Dealers.

Gold hovers around $1,700; euro zone eyed
SINGAPORE, Nov 23 (Reuters) - Gold prices traded steady around $1,700, after buying related to options' expiration lifted prices by more than 1 percent in the previous session, as investors continue to watch the unfolding euro zone debt crisis.
"Prices will probably trade between $1,680 to $1,700 for the rest of the week as investors prefer to stay out of the market with cash in hand," said Ronald Leung, a dealer at Lee Cheong Gold Dealers.

No comments: