Tuesday, July 31, 2012

20120730 1632 Global Markets & Commodities Related News.

GLOBAL MARKETS: Asian shares rose on hopes for further stimulus from the European Central Bank and the U.S. Federal Reserve, both of which hold policy meetings this week, but scepticism about the long-term effectiveness of any ECB actions capped the euro. Financial spreadbetters expect Europe's stock indexes to open slightly higher, with the sharp three-day rally losing steam as doubts emerge on whether the European Central Bank will revive its bond buying programme to help lower borrowing costs of debt-stricken Spain and Italy. U.S. stocks finished mostly flat on Monday as investors paused following the best two-day run this year, with central bank meetings and a full load of U.S. economic data looming.

ECB on course to act strongly or disappoint mightily
European Central Bank President Mario Draghi must back up his pledge to do what it takes to protect the euro when the bank's policymakers meet on Thursday or else face deep disappointment from investors hungry for - and expecting - immediate action.

Major Asian exporters stumble on weak global economy
Major Asian exporters Japan, South Korea and Taiwan showed deepening signs of economic stress on Tuesday as Europe's sovereign debt crisis, a slowing China and sluggish activity in the United States weigh on global demand.

FOREX: The euro edged higher against the dollar but stayed off a recent three-week high, while the Australian dollar hit a four-month high, supported by expectations that major central banks may add more stimulus.

FOREX-Euro firmer vs dollar; Aussie rises on stimulus hopes
SYDNEY/SINGAPORE, July 31 (Reuters) - The euro edged higher against the dollar on Tuesday but stayed off a recent three-week high, while the Australian dollar hit a four-month high, supported by expectations that major central banks may add more stimulus.
"I think there are more options on the table than we can think of right now. There's a lot of anticipation after Draghi's comments," said Jesper Bargmann, Asia head of G11 spot FX for RBS in Singapore.

June commods index investments snap 3-mth decline -CFTC
July 30 (Reuters) - Investment in commodity indexes rose in June, snapping a three-month decline, as renewed hopes for a solution to the euro zone crisis boosted most risk assets, figures from the U.S. Commodity Futures Trading Commission showed on Monday.
In its first monthly data showing an uptick in commodity market positions since February, the CFTC said the value of net long index investments rose by $6.8 billion, or nearly 4 percent, to $190.8 billion in June.

Australian banks to step up agricultural financing -ANZ
Australian banks will step up to fill the gap in financing agricultural firms in Asia left by the withdrawal of European banks from the region, the deputy chief of Australia and New Zealand Banking Group  said.

GRAINS: Chicago soybeans edged lower, giving back some of the previous session's strong grains, while corn was little changed following a rally as the worst drought since 1956 causes more damage to crops in the U.S. grain belt.

Japan to export less diesel, jet fuel in Aug on supply constraints
Japan will export up to 2.4 million fewer barrels of diesel and jet fuel in August compared with July, and exports could decline further in the months ahead as refinery outages and maintenance curbs production, keeping market premiums high, industry sources said on Tuesday.

OIL: Brent crude slipped towards $106 per barrel as caution among investors grew that any fresh stimulus measures coming from central bank meetings in the United States and Europe might not be enough to revive their stuttering economies.

China may revive tax rebates to bolster struggling steel sector
China may revive tax rebates to bolster the country's steel sector hit by slumping profits and inventories that have ballooned to levels enough to build hundreds of Beijing's National Stadium.

COLUMN-Even tin can't escape demand fears
LONDON, July 30 (Reuters) - The price of tin  traded on the London Metal Exchange (LME) collapsed last week to a one-year low of $17,125 per tonne.
It was a typically brutal move, highlighting once again how the lack of liquidity in one of the LME's smallest-volume contracts can translate into extreme volatility.

Indian steel makers double pellets imports in May
MUMBAI, July 30 (Reuters) - Imports into India of iron ore pellets, used in making steel, more than doubled in May to 174,319 tonnes as a partial mining ban in southern Karnataka state hit supplies, an industry body said.
Production in India, once the third-biggest global supplier of iron ore, has been hit as the government and state authorities raise taxes and freight rates to try to curb exports and retain supplies for domestic use.

China steel mills step up maintenance in bid to curb output
SHANGHAI, July 30 (Reuters) - China's small- and medium-sized steelmakers are stepping up maintenance in an effort to cut production and stem losses from a slump in steel prices and a surge in inventories, a move that could further pressure prices of their raw material, iron ore.
With no sign of a quick demand recovery in sight, a growing number of mills in the world's largest steel-producing nation have begun idling some capacity after having held output near record levels over the past few months.

 China says iron ore prices abnormally high versus steel products
BEIJING, July 31 (Reuters) - Iron ore prices are still abnormally high compared to steel products, an official with the China Iron & Steel Association (CISA) said on Tuesday.
Financing costs for the association's members, comprising 78-80 medium and large-sized steel mills, rose 37 percent in the first half of this year from a year earlier, Zhang Changfu, CISA's vice chairman told reporters in Beijing.

China steel industry profits plummet - CISA
BEIJING, July 31 (Reuters) - Profits at China's steel mills fell by 96 percent in the first half of 2012 compared with the year before, the China Iron and Steel Association, which represents the country's largest mills, said on Wednesday.
Many mills, especially the larger ones, are struggling as steel prices dive just as expensive upgrades commissioned during China's decade of booming steel demand are coming online.

Chile June copper output up 5.6 pct at 452,690 tonnes
SANTIAGO, July 30 (Reuters) - Chile, which provides about one-third of the world's copper, produced 452,690 tonnes of the red metal in June , up 5.6 percent from the same month a year earlier, the government said on Monday.
Copper output slipped 1.2 percent compared with May, when the world's No. 1 copper producer churned out 458,640 tonnes of it.

BASE METALS: Copper edged up underpinned by expectations the United States and Europe would introduce fresh easing measures this week, while traders were cautious ahead of China factory data that could offer new trading cues.

PRECIOUS METALS: Gold edged up ahead of the U.S. Federal Reserve's policy meeting later in the day, which is expected to shed light on the bank's stance on monetary stimulus, a key factor driving bullion prices. Spot gold inched up 0.2 percent to $1,623.56 an ounce.

METALS-Copper edges up, supported by stimulus hopes
SINGAPORE, July 31 (Reuters) - Copper edged up on Tuesday, underpinned by expectations the United States and Europe would introduce fresh easing measures this week, while traders were cautious ahead of China factory data that could offer new trading cues.
"Copper remains macro-driven and data point dependent, but the likelihood of any strong conviction trend emerging through the summer months seems pretty limited considering physical markets are all but dead," said Hong Kong-based commodities analyst James Luke of China International Capital Corporation.

PRECIOUS-Gold stays put as investors eye Fed meeting
SINGAPORE, July 31 (Reuters) - Gold held steady on Tuesday ahead of the U.S. Federal Reserve's policy meeting later in the day, which is expected to shed light on the bank's stance on monetary stimulus, a key factor driving bullion prices.
"Gold may come under some pressure in the run-up to this week's central bank meetings with the possibility of a dip below $1,610, but direction will depend almost entirely on policy decisions," ANZ said in a research note.

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