Wednesday, July 25, 2012

20120725 1132 Global Markets & Commodities Related News.

COMMODITIES-Broad selloff as Europe crisis widens; oil bucks trend
NEW YORK, July 24 (Reuters) - Oil closed up on Tuesday for the first time in three days on China's encouraging manufacturing data, while other commodities mostly fell as a negative credit outlook for Germany led to fears the euro zone crisis was worsening.
"The risks of escalation of the conflict in Syria, we think, will continue to limit the extent of any bearish sentiment" on oil, ANZ analysts said in a note.

GLOBAL MARKETS-Shares fall on intensifying worry over Spain
TOKYO, July 25 (Reuters) - Asian shares fell and the euro was stuck near multi-year lows against major currencies  as soaring borrowing costs deepened worries Spain might need a bailout, while Greece's finances appeared to fall short of terms conditional to its aid.
"With so much risk to go around, markets have been making sharper and sharper distinctions between 'safe haven' and 'risky' assets," said Michael Gavin, head of global macro and emerging market strategy at Barclays Capital in a report.

China PMI improves, commodity demand to lag
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
LAUNCESTON, Australia, July 24 (Reuters) - It is perhaps a reflection of the parlous state of the global economy that what is essentially a negative reading on China's industrial strength is taken by the market as a positive signal.
The HSBC Flash Purchasing Managers' Index remained below the 50-level in July, indicating activity in the world's largest manufacturer contracted for a ninth straight month.

Falling output, old fields spur North Sea tax fight
--John Kemp is a Reuters market analyst. The views expressed are his own--
LONDON, July 24 (Reuters) - UK government revenues from oil and gas production will almost halve over the next four years, as falling output as well as investment in new fields and the cost of decommissioning old ones cut into tax receipts.
Shrinking revenues highlight the rapid depletion of North Sea oil fields, but also the growing costs of plugging and abandoning old wells that are no longer productive as the province becomes more mature.

OIL-Oil up on China data, but Europe concerns limit rise
NEW YORK, July 24 (Reuters) - Oil edged up on Tuesday in choppy trading as signs that China's manufacturing sector was improving lent support while weak euro-zone data and the region's spreading debt crisis limited gains.
"The preliminary purchasing managers' indices from the eurozone, on the other hand, remain persistently at recession level and are thus likely to counter any stronger price recovery."

 POLL-U.S. crude stocks forecast down on lower imports
July 24 (Reuters) - U.S. crude oil stockpiles are forecast to have fallen last week for a fifth straight week, due to lower imports, an expanded Reuters poll of analysts showed on Tuesday.
 Commercial crude stocks are projected down 700,000 barrels for the week ended July 20, with eight of 12 analysts expecting a draw, one forecasting no change and the others a build.

Hong Kong's Li Ka-shing to buy UK gas assets for $1 bln
HONG KONG, July 25 (Reuters) - A group of companies controlled by Hong Kong billionaire Li Ka-shing has agreed to buy UK gas company Wales and West Utilities for 645 million pounds ($1 billion), the latest acquisition by the tycoon that will boost his gas portfolio in Britain.
Octogenarian Li has been expanding his business empire by buying into regulated infrastructure and utilities assets in developed countries, especially Britain -- which is open to foreign ownership of its infrastructure assets.

NATURAL GAS-US natgas futures gain for 5th day, front at 7-mth high
NEW YORK, July 24 (Reuters) - U.S. natural gas futures ended higher on Tuesday for a fifth straight day, with bullish technicals, still-warm forecasts and estimates for another light weekly inventory build driving the front contract to a fresh seven-month high.
"Sentiment is stacking up on the bullish side which is emboldening new buyers. Computer model runs suggest there is additional heat coming, but there are concerns about coal-to-gas switching - it's becoming less enticing with these economics," Gelber & Associates analyst Pax Saunders told Reuters.

EURO COAL-Prices steady, more China defaults seen
LONDON, July 24 (Reuters) - Physical prompt coal prices were little changed on Tuesday, supported by oil's rise towards $104, but were set to come under renewed downward pressure in coming weeks because of another wave of Chinese defaults and forced price re-negotiation, traders and utilities said.
"I thought the South African price had reached a floor of $85 a tonne but with China, the situation with defaults has become so much worse in the past two weeks, prices have got to fall further," one Asia-based trader said.

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