Thursday, December 22, 2011

20111222 1058 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares, euro ease as bank funding doubts persist
TOKYO, Dec 22 (Reuters) - Asian shares and the euro eased on Thursday as doubts remained over how much of the funds banks raised from an inaugural long-term European Central Bank tender will actually flow into struggling euro zone economies and help restore confidence.
"With bank balance sheets under stress and the system still required to raise capital ratios under Basel III, the temptation will surely be for banks to sit on this additional liquidity, rather than recycle it back through the economy," wrote BNP Paribas in a daily note.    

COMMODITIES-Oil extends gains in thinly traded markets
NEW YORK, Dec 21 (Reuters) - Oil prices closed at a one-week high on Wednesday, leading gains in thinly traded commodity markets, as tumbling U.S. crude stockpiles indicated more demand for energy and an offer of cheap loans for struggling European banks aided sentiment.
"Volumes are predictably low because of the pre-holiday rounds that we're in. High trading deposits in some markets like gold and silver are also putting a squeeze on trades," said George Gero, vice president at RBC Capital Markets Global Futures in New York.

China shows no qualms over price of Iran oil showdown
BEIJING/SINGAPORE, Dec 20 (Reuters) - China has made an audacious move to force Iran to sell it cheaper crude, disrupting the flow of over 10 percent of the Islamic Republic's exports by cutting January imports in half.
In contrast to other top Asian buyers worried about what sanctions mean for crude flows from the world's fifth-largest exporter, China has shown no public qualms about the risk that a disruption will drive up the cost of oil.

Oil rises as US stockpiles slump to near 3-year low
NEW YORK, Dec 21 (Reuters) - Oil prices rose for a third straight day on Wednesday as U.S. crude inventories dropped to their lowest in nearly three years, overshadowing worries about the euro zone debt crisis.
"Overall, the (oil stocks) data is mildly bullish and I expect we will continue the trend for the next week," said Mark Waggoner, president at Excel Futures.

NYMEX-Natural gas ends up for 2nd day, shorts cover
NEW YORK, Dec 21 (Reuters) - U.S. natural gas futures reversed course and ended higher on Wednesday for a second day, backed by technical buying after an early sell-off stalled, but record high supplies and fairly mild weather forecasts continued to limit the upside.
"The market has been trending lower for days. We were bound to get some retracement, maybe in sympathy with crude," said Tom Saal, senior vice president at INTL Hencorp in Miami,    

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