Stocks, commodities, euro sink on EU summit doubts
TOKYO, Dec 9 (Reuters) - Asian shares, commodities and the euro fell on growing doubts that European leaders could forge a credible plan to solve the euro zone's debt crisis at a summit later in the day.
"The knee-jerk was to the downside, even though we knew every single one of the headlines and there was nothing that we didn't know 24 hours ago, so I would expect a recovery in Asia," said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. "What we can take away from this is that markets are very nervous."
FOREX-Euro struggles as EU disappoints again on debt crisis deal
SINGAPORE, Dec 9 (Reuters) - The euro clawed back losses on Friday after dipping close to a recent one-week low as hopes dimmed that a European Union summit would make substantial progress toward containing the euro zone debt crisis.
The euro came under pressure and the Australian dollar tumbled after one EU diplomat said EU leaders had agreed the euro zone's permanent bailout fund will not have a banking license, which could limit its firepower.
US jobless claims at 9-month low as recovery quickens
WASHINGTON, Dec 8 (Reuters) - The number of Americans filing new claims for unemployment benefits dropped to a nine-month low last week, suggesting the labor market's recovery was gaining momentum.
The picture of an economy gathering strength was further enhanced by other data on Thursday showing wholesale inventories in October rose by the most in five months, a sign businesses were rebuilding depleted inventories.
China industry output growth slowest in two years
BEIJING, Dec 9 (Reuters) - China's industrial output growth hit its slowest pace in more than two years in November and inflation tumbled as economic conditions deteriorated, raising expectations Beijing will ease monetary policy again.
A batch of November data largely showed that growth in the world's second-largest economy was slowing down further as it feels the chill of the euro zone debt crisis, although retail sales were stronger than expected.
China Nov inflation tumbles, more easing eyed
BEIJING, Dec 9 (Reuters) - China's annual inflation rate tumbled in November to 4.2 percent, the lowest level in more than a year, fuelling expectations of further monetary policy easing to combat deteriorating domestic and international economic conditions.
The rate has dropped rapidly since hitting a three-year high of 6.5 percent in July and is now at a pace closer to the full-year government target for 2011 of 4 percent.
US grains futures slip ahead of EU summit, USDA data
SINGAPORE, Dec 9 (Reuters) - U.S. grains futures dropped in cautious trade ahead of a European Union summit, which may not produce a significant breakthrough to solve a two-year-old debt crisis that had weighed on commodities.
"If the EU summit fails to deliver any meaningful reforms, meaningful package, then all risk assets, agriculture commodities included, are likely to suffer as a result," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
Vietnam 2010 rice output revised up-attache
Dec 8 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Vietnam:
"Post revises Vietnam's MY2010 total rice production from 41.69 to 42.10 million tonnes (over 2 million tonnes higher than MY2009), paddy basis, due to better production in all Vietnam's seasonal crops compared with MY2009."
EU clears 142,000 tonnes wheat exports this week
PARIS, Dec 8 (Reuters) - The European Union this week granted export licences for 142,000 tonnes of soft wheat, taking the total since the beginning of the 2011/12 (July-June) season to 6.6 million tonnes, official data showed on Thursday.
The total so far this season compared with 10.3 million tonnes of export licences cleared by the same stage in 2010/11.
Ivorian San Pedro cocoa arrivals 224,284 T by Dec 4-BCC
ACCRA, Dec 8 (Reuters) - Cocoa arrivals at Ivory Coast's port of San Pedro since the start of the season in October reached 224,284 tonnes by Dec. 4, according to data from the Coffee and Cocoa Bourse (BCC) obtained by Reuters on Thursday.
That compared with 194,840 tonnes delivered to the port during the same period of the 2010/11 season.
Brazil's lucrative corn expands at soy's expense
SAO PAULO, Dec 8 (Reuters) - The world's No. 2 soy producer, Brazil, will see output of soybeans tumble more than 5 percent in the 2011/12 harvest as more lucrative corn sprawls out, the government crop supply agency Conab said on Thursday.
Production is expected to fall 5.4 percent to 71.29 million tonnes from last year's record output of 75.32 million tonnes, despite a small 0.7 percent increase in the total soy-planted area.
Coffee may weather economic storm, global output dips
HO CHI MINH CITY/SINGAPORE, Dec 8 (Reuters) - Global coffee output may slip around 4 percent in the year to next September on crop revisions in top two producers Brazil and Vietnam, while resilient consumption could offer some respite to prices already dented by Europe's debt crisis.
Concerns over production would dictate the long-term outlook as Vietnam, which has seen rising output in recent years, cautioned that exports would dip in coming years as domestic consumption rises and output falls due to a replanting programme.
World coffee consumption seen rising steadily-ICO
HO CHI MINH CITY, Dec 8 (Reuters) - Global coffee consumption is expected to rise steadily next year despite the economic slowdown to match the 2.5 percent annual average growth seen in the past decade, a senior industry executive said on Thursday.
"Consumption is going to be very well despite the economic turbulence," Roberto Olivier Silva, executive director of the London-based International Coffee Organization (ICO) told Reuters in an interview.
Brent falls below $108 on EU summit doubts
SINGAPORE, Dec 9 (Reuters) - Brent crude fell below $108, on growing concern that European policy makers will fail to deliver a concrete plan to tackle the euro zone debt crisis at a key meeting, an outcome likely to hurt prospects for demand.
"Before the ECB acts further, the EU has to come together, but the market doesn't believe the EU can get its act together. They will likely do the bare minimum and prices are going to react month to month as they muddle through this crisis," said Tony Nunan, a risk manager with Mitsubishi Corp in Tokyo.
Saudi to supply full January crude to Asia
TOKYO, Dec 9 (Reuters) - Saudi Arabia, the world's top crude exporter, will supply full contracted volumes of crude oil in January to at least three Asian term buyers, unchanged from December, industry sources familiar with the matter said on Friday.
Saudi did not offer additional volumes on top of the contractual volumes to the three buyers, though it has boosted output to over 10 million barrels per day (bpd) to feed increased demand from consuming countries.
US sets preliminary duties on China steel cylinders
WASHINGTON, Dec 8 (Reuters) - The U.S. Commerce Department said on Thursday it has set additional preliminary duties of 5 to 26 percent on high-pressure steel cylinders from China to protect the only remaining U.S. producer of the product.
Norris Cylinder Company, based in Longview, Texas, asked for duties earlier this year to offset alleged Chinese government subsidies and unfair pricing practices.
METALS-Copper slips, eyeing fifth weekly loss in six
SINGAPORE, Dec 9 (Reuters) - London copper futures edged lower on Friday, reflecting investor worries about European leaders finding a far-reaching solution to a two-year-old debt crisis and sharply slowing demand in top consumer China.
Copper is heading for its fifth weekly drop in six weeks, and could stretch losses until the end of the year if a European Union summit later in the day fails to yield positive results and more Chinese data point to weaker growth in the world's second-largest economy.
PRECIOUS-Gold steady; hopes fizzle on EU summit
SINGAPORE, Dec 9 (Reuters) - Gold prices traded steady on Friday, as investors watched the progress of a crucial European Union summit with dwindling confidence that it would produce a cure for the two-year-old debt crisis.
The European Union failed to secure backing from all 27 countries to change the EU treaty at a summit on Friday, meaning any deal will now likely involve the 17 euro zone countries plus any others that want to join, three EU diplomats said.
Copper slips, eyeing fifth weekly loss in six
SINGAPORE, Dec 9 (Reuters) - London copper futures edged lower, reflecting investor worries about European leaders finding a far-reaching solution to a two-year-old debt crisis and sharply slowing demand in top consumer China.
"I'm worried that China's slowing down too fast, that's the scare factor," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.
Gold steady; hopes fizzle on EU summit
SINGAPORE, Dec 9 (Reuters) - Gold prices traded steady, as investors watched the progress of a crucial European Union summit with dwindling confidence that it would produce a cure for the two-year-old debt crisis.
"A day or two is not enough to solve the problem in Europe," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers in Hong Kong. "If we don't see any concrete outcome from the summit, gold is likely to test $1,700, and $1,680 after that."
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