Wednesday, December 21, 2011

20111221 1706 Global Market & Commodities Related News.

European Stocks Climb for Third Straight Day; U.S. Index Futures Advance (Bloomberg)
European stocks rose for a third day amid speculation that companies and the economy can weather the fallout from the sovereign-debt crisis. Asian shares and U.S. index futures gained. Adidas AG (ADS) climbed 2.4 percent after rival Nike Inc. reported profit that topped analysts’ projections. K+S AG (SDF) increased 1.5 percent as Goldman Sachs Inc. advised buying the shares. SAP AG (SAP) dropped 3.3 percent as Oracle Corp. reported sales and profit that missed analysts’ estimates, hurt by slower demand for databases, applications and computer servers. The Stoxx Europe 600 Index advanced 0.7 percent to 240.19 as of 8:06 a.m. in London. The gauge gained 2 percent yesterday, the biggest advance since Nov. 30, as German business confidence unexpectedly rose for a second month. The gauge has still lost 13 percent this year amid mounting concern that policy makers will fail to stop at least one member of the euro area from defaulting.

Asia Stocks Rise Second Day on U.S. Data, China Industry Support (Bloomberg)
Asian stocks (MXAP) rose for a second day, with a benchmark index set for the biggest gain in almost three weeks, as China pledged support for exporters and small businesses and after improved U.S. and German economic data. Honda Motor Co. (7267), the Japanese carmaker that gets about 44 percent of its sales from North America, advanced 2.4 percent in Tokyo on speculation shipments will rise amid signs the U.S. economy is improving. Onesteel Ltd., the second-worst performer in the MSCI Asia Pacific Index this year, jumped 7.1 percent after Goldman Sachs Group Inc. named it among top Australian stock picks for next year. Mining and energy stocks gained as oil and copper prices climbed.
“The U.S. is showing it’s fairly robust in terms of not being dragged down to the extent of European economies,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “The question is, given we are coming into a holiday period, how sustainable those gains are going to be over the next week or so.”

FOREX-Euro extends gains ahead of ECB tender
TOKYO, Dec 21 (Reuters) - The euro extended gains in Asian trade on Wednesday, on short-covering ahead of the European Central Bank's first offer of three-year loans that many hope will help the region's banks lower their funding costs.
"There is some follow-through optimism about the euro from the previous session, which prompted short-covering, and this has continued into Asian trading," said Masafumi Yamamoto, chief forex strategist at Barclays Bank in Tokyo.

Global steel capacity utilisation at 2-yr low
LONDON, Dec 20 (Reuters) - Capacity utilisation rates at global steel mills fell to their lowest in two years in November as consumers ran down inventories amid a debt crisis in Europe that has dimmed the economic outlook.
Capacity utilisation rates fell to 73.4 percent in November, down 2.8 percent from October and 2.6 percent from November last year, the World Steel Association said on Tuesday.

China warns of risks of buying Iranian iron ore
SHANGHAI, Dec 21 (Reuters) - China on Wednesday warned about the risks of importing Iranian iron ore, the second major commodity from the sanctions-hit Islamic Republic under scrutiny as the two also tussle over oil payment terms.
The warning from the Commerce Ministry to domestic companies, which focused on substandard quality and on delivery problems, follows a crude imports spat that has seen China halve its Iranian oil shipments for January.

Spot price rises as China boosts restocking
SHANGHAI, Dec 21 (Reuters) - Spot iron ore prices extended gains on Wednesday as more steel mills in China returned to the market to replenish stockpiles ahead of the new year, but a sombre outlook for steel demand may limit the upside.
Spot prices have begun stabilising this week, with offers of 61.5 percent Pilbara fines being offered at $134-136 per tonne on Wednesday, including cost and freight, compared with $132-134 from the previous day, Chinese consultancy Umetal said.

China November LNG, coal imports at record highs
BEIJING, Dec 21 (Reuters) - China imported 1.29 million tonnes of liquefied natural gas in November, the highest monthly volume on record, data from the China Customs Statistics Information Centre showed on Wednesday.
The peak came as PetroChina's  first LNG import terminal in eastern Jiangsu province was revving up operations while its second terminal in northeastern Liaoning province began to receive the super-cooled gas last month.

China aluminium output rises in Nov - IAI
LONDON, Dec 20 (Reuters) - Daily average primary aluminium output in China rose to 48,900 tonnes in November, up from 48,100 tonnes in October, provisional figures from the International Aluminium Institute (IAI) showed on Tuesday.  
Total primary aluminium production in November, however, fell to 1.466 million tonnes from 1.491 million tonnes in October.  

Chile's Sonami sees copper avg. $3.6-4.0 a lb in 2012
SANTIAGO, Dec 20 (Reuters) - Copper prices will average $3.60 to $4 a pound next year as Chinese demand for the red metal helps compensate for Europe's debt woes, Chile's influential mining association Sonami, said on Tuesday.
Prices for the metal are down nearly 25 percent this year, on track for the first annual decline since 2008, as the euro zone debt crisis has pushed investors to liquidate industrial metals.

Easing credit may cut China copper, nickel imports
HONG KONG, Dec 20 (Reuters) - Chinese investors will import less copper and nickel as collateral for short-term loans if Beijing loosens credit policy next year, but will still bring in some metal if easing fails to reach the property sector.
Less demand for metal for financing would bring imports into line with domestic consumption, which is expected to slow in 2012 on weaker exports and economic expansion, further weighing on prices that have fallen by around a quarter this year.

METALS-Copper up slightly on improved U.S. outlook
KUALA LUMPUR, Dec 21 (Reuters) - London copper added to the previous day's sharp gains on Wednesday, as signs of growth in the United States and Germany raised expectations that demand for the industrial metal will increase.
"The U.S., by and large, is still an economy that's expanding," said Suan Teck Kin, a senior economist at UOB Bank Ltd. in Singapore.

PRECIOUS-Gold hits one-week high on upbeat US, German data
SINGAPORE, Dec 21 (Reuters) - Gold rose to a one-week high on Wednesday, extending gains from the previous session, as upbeat economic data from the United States and Germany boosted market sentiment and a weaker dollar lent support.
"The rebound in gold today is related to the currency market," said Dick Poon, manager of precious metals at Heraeus in Hong Kong. "But we don't see much fresh buying from investors as the year end nears."

Baltic index stays negative; pick up likely in New Year
Dec 20 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, stayed negative for a sixth day on Tuesday as a recent upsurge in capesize rates began to fade ahead of the holiday season.
The index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, dipped 7 points or 0.37 percent to 1,878 points.

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