Wednesday, January 18, 2012

20120118 1101 Global Market & Commodities Related News.

World Bank Cuts Global Growth Outlook
The World Bank cut its global growth forecast by the most in three years, saying that a recession in the euro region threatens to exacerbate a slowdown in emerging markets such as India and Mexico. The Washington-based institution said the world economy this year will grow 2.5 percent, down from a June estimate of 3.6 percent. The World Bank sees the euro area contracting 0.3 percent in 2012, compared with a previous estimate of 1.8 percent growth. The U.S. outlook was cut to an expansion of 2.2 percent from 2.9 percent. “Even achieving these much weaker outturns is very uncertain,” the World Bank said in its Global Economic Prospects report released today. “The downturn in Europe and weaker growth in developing countries raises the risk that the two developments reinforce one another, resulting in an even weaker outcome.”

China’s Foreign Direct Investment Drops
Foreign direct investment in China fell for the second straight month in December as global financial turmoil dimmed companies’ appetite for spending. Investment from overseas fell 12.73 percent to $12.24 billion last month from a year earlier, the Ministry of Commerce said in a statement in Beijing today. For the full year, spending rose 9.72 percent to a record $116 billion, the data showed. Investment fell 9.8 percent in November, the first decline since 2009. China announced amendments to policies to attract foreign funds last month, changes that may weigh on spending in some industries this year. Europe’s debt crisis and anticipated weaker growth in the U.S. this year may also limit investment, with central bank Governor Zhou Xiaochuan warning this month a global downturn could lead to “large” capital withdrawals from the country.
“Foreign investment faces challenges and won’t grow very fast this year,” said Shen Jianguang, chief Greater China economist at Mizuho Securities Asia Ltd. in Hong Kong. “Some industries are facing overcapacity” and it will “take time for investment to pick up” in services and renewable energy industries that the government wants to encourage, he said.


GLOBAL MARKETS-Shares steady, eyes Portugal debt sale, Greece
TOKYO, Jan 18 (Reuters) - Asian shares and the euro steadied on Wednesday after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in   a debt sale and Greece resumes talks on its debt restructuring.
"More evidence of a soft landing in China should help underpin the recent resilience of market sentiment, despite the ongoing European situation," said analysts at Barclays Capital in a research note.

COMMODITIES-End volatile week down on Europe worries
NEW YORK, Jan 13 (Reuters) - Commodities slid on Friday, ending a volatile week where oil and grains initially surged on supply concerns and a weak dollar, before tumbling on the currency's rebound and renewed worries over Europe.
"While it should be anticlimatic, the realization will also be sobering. In particular, the flight to the dollar will be accelerated, pushing crude oil prices lower," said John Kilduff, partner at Again Capital LLC in New York.

Oil up on economic data, but Europe worry limits rise
NEW YORK, Jan 17 (Reuters) - Brent crude prices edged higher on Tuesday on lift from the weaker dollar and better-than-expected data from China, Germany and the United States, but concerns about Europe's economy after last week's credit downgrades limited gains .  
"Most of it is WTI playing catch-up from the holiday," added John Kilduff, a partner at hedge fund Again Capital in New York. "Brent looks to be reflecting the euro zone concerns. The China GDP was good, but exports were down and that highlights the slowdown in Europe."

POLL-US crude stocks seen rising for fourth week
Jan 17 (Reuters) -  U.S. commercial crude oil stockpiles likely rose last week for the fourth straight week on strong imports, a preliminary Reuters poll showed on Tuesday.  
On average, domestic crude oil inventories were forecast up 2.8 million barrels, according to the poll of six analysts, who all predicted builds for the week to Jan. 13.

Beyond oil a gloomier 2012 economy seen in coal, freight
LONDON, Jan 17 (Reuters) - Oil prices may still be riding high but for a more accurate picture of the state of the global economy in 2012, look at recent developments in the non-oil energy, freight and metals sectors.
Coal and power benchmark futures prices have fallen to their lowest levels since late 2010, while the Baltic Dry Freight Index, a barometer of demand for shipping, is languishing at a three-year low.

Iraq to lift oil exports 400,000 bpd through March
LONDON, Jan 17 (Reuters) - Iraq aims to boost oil exports by up to 400,000 barrels per day over the next two months as it opens the taps at a new Gulf outlet, a senior Iraqi oil industry source said on Tuesday, signalling the world's biggest capacity expansion this year.
Now in year three of a bold oil development programme, Baghdad finally may be able to export all the extra oil extracted from its supergiant fields by foreign oil companies.

NYMEX 12-month natural gas strip hits 10-year low
NEW YORK, Jan 17 (Reuters) - The average of the first 12 months of natural gas futures contracts on the New York Mercantile Exchange slid to its lowest in nearly 10 years on Tuesday, as mild winter weather and record supplies continued to weigh on the complex.
The 12-month futures strip fell 17.4 cents, or 5.7 percent, to $2.859 per million British thermal units, the first settle below $3 since early March 2002. 

Euro Coal-S.Africa prices rise $3/T
LONDON, Jan 17 (Reuters) - Prompt South African coal prices rallied by around $3 a tonne on Tuesday as players covered short positions, but this strength was unlikely to last unless China resumes heavy buying in February, traders and utilities said.
"ARA is a little softer, but there's a bit of a temporary squeeze on February South African cargoes," one European trader said.

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