Monday, September 10, 2012

20120910 1615 Global Markets & Commodities Related News.

GLOBAL MARKETS: Asian shares crept up with soft Chinese data overshadowed by expectations for fresh stimulus from the Federal Reserve and for Europe to make progress in tackling its debt crisis. European stocks were set to dip following last week's rally, although losses could be limited by mounting expectations of a new round of stimulus measures by the U.S. Federal Reserve in the wake of lower-than-expected monthly jobs data. U.S. stocks held steady at four-year highs on Friday, closing out their best week since June as a sharply disappointing jobs report only fueled expectations that the Federal Reserve would act to stimulate the economy next week. (Reuters)

FOREX: The euro fell against the dollar but still held near a four-month high, after weak U.S. jobs data fanned speculation that the Federal Reserve would launch more monetary stimulus this week. (Reuters)

FOREX-Euro slips but cushioned by Fed stimulus hopes
SINGAPORE/SYDNEY, Sept 10 (Reuters) - The euro eased against the dollar on Monday but still held near a four-month high, after weak U.S. jobs data fanned speculation that the Federal Reserve would launch more monetary stimulus this week.
"The weak payrolls report has put QE3 firmly on the agenda for this week," said Annette Beacher, head of Asia-Pacific Research at TD Securities.

U.S. job growth cools, posing challenge for Obama, Fed (Reuters)
U.S. jobs growth slowed sharply in August, dealing a blow to President Barack Obama as he seeks re-election and setting the stage for the Federal Reserve to pump additional money into the sluggish economy next week.

Weak China trade data confirms outlook worsening (Reuters)
China's exports grew at a slower pace than forecast in August while imports surprisingly fell, underlining the mounting challenge facing Beijing's policymakers as domestic demand flags while the global economic outlook darkens.

China approves $157-billion infrastructure spending
SHANGHAI/BEIJING, Sept 7 (Reuters) - China has given the green light to 60 infrastructure projects worth more than $150 billion, as it looks to energise an economy mired in its worst slowdown in three years, fuelling hopes the world's growth engine may get a lift from the fourth quarter.
Prices of shares and steel futures contracts jumped on the plans to build highways, ports and airport runways, which are among the most ambitious unveiled in China this year.

COLUMN-China commodity imports mixed, volatility to persist
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
SINGAPORE, Sept 10 (Reuters) - The trick with China's commodity imports is working out whether the bottom has been reached or whether several more months of mixed signals are likely.
Certainly the August figures contained something to support virtually any argument you would care to make about the outlook for demand.

GRAINS: Chicago soybeans edged lower, falling for five out of six sessions on hopes that late season rains in the United States would help salvage some of an oilseed crop battered by devastating drought across the grain belt.  (Reuters)

Informa lowers forecasts for U.S. corn production (Reuters)
Private analytics firm Informa Economics lowered its estimate of the U.S. corn yield to 119.8 bushels per acre, from its previous forecast of 120.7, days before the U.S. Department of Agriculture updates its monthly crop forecasts, trade sources said Friday.

China's August refinery, power output inch up on yr (Reuters)
China's refinery throughput and power generation rose slightly in August from a year earlier, with higher crude runs helped by a fuel price hike that helped pare some of the heavy refining losses, data from the National Bureau of Statistics showed on Sunday.

OIL: Brent crude futures climbed above $114 a barrel, but gains were limited as expectations for the U.S. Federal Reserve to launch further stimulus measures offset weak Chinese industrial output data. (Reuters)

BHP shuts Australian coal mine due to weak prices, high costs
SYDNEY, Sept 10 (Reuters) - BHP Billiton , the world's biggest miner, said on Monday it would cease production at its Gregory open cut coal mine in the state of Queensland from Oct. 10 due to weak coal prices, high costs and a strong Australian dollar.
Prices for coal, iron ore and other commodities have been tumbling in recent weeks due to slowing growth in top consumer, China.

U.S. steel, coal shares surge on China building plan
Sept 7 (Reuters) - China's approval of a $157 billion infrastructure building plan sent U.S. steel and coal company shares surging on Friday on the hopes it would stimulate the two sectors that have struggled to rebound from the recession.
The biggest gainer was coal miner Alpha Natural Resources , whose shares rose more than 16 percent on the New York Stock Exchange, while iron ore miner Cliffs Natural Resources  added 14 percent and U.S. Steel  gained 8 percent.

S.African police brace as Lonmin workers set to return on Monday (Reuters)
South African police are braced for possible violence ahead of Monday's back-to-work deadline for striking workers at Lonmin's flagship platinum mine, where 44 people died in labour strife last month, most of them at the hands of police.

Specs up gold, silver length to most bullish since March
Sept 7 (Reuters) - Money managers, including hedge funds and other large speculators, raised their bullish bets in gold and silver to their largest holding since March on expectations of easing measures from major central banks.
Speculators in gold raised their net length by 13,088 contracts to 144,775 contracts during the week ended Sept. 4, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.

Iron Ore-Shanghai rebar gains for 2nd day, gives iron ore hope
SINGAPORE, Sept 10 (Reuters) - China steel futures rose for a second day on Monday, supported by hopes that Beijing's approval of more than $150 billion in infrastructure projects would resuscitate steel demand, providing fuel for a recovery in iron ore prices.
Price offers for imported iron ore cargoes in China rose by up to $4 per tonne on Monday, after the benchmark rate jumped by $2, or 2.3 percent, to $89 a tonne on Friday.

Shanghai steel posts biggest day gain on building drive

SINGAPORE, Sept 7 (Reuters) - Shanghai steel futures rose 5 percent, their biggest percentage gain on record, and spot iron ore posted its biggest gain in 10 months on Friday after China approved infrastructure projects to revive its economy, raising prospects of higher steel demand.
China gave the go-ahead for 60 infrastructure projects this week which analysts estimate total more than 1 trillion yuan($158 billion), or 2.1 percent of China's economy.

China Aug iron ore imports up 7.9 pct as domestic output drops
BEIJING, Sept 10 (Reuters) - China's imports of iron ore in August rose 7.9 percent from the previous month to a three-month high with buyers turning to the international market as a collapse in prices forced domestic producers to slash output.
Total imports of the steelmaking raw material reached 62.45 million tonnes in August, defying expectations and a collapse in domestic steel demand to reach their highest level since May.

EU says may be regional fund help for Italian steel plant
CERNOBBIO, Sept 9 (Reuters) - The European Commission is prepared to play its part in trying to save the giant ILVA steel mill in the southern Italian city of Taranto, with financial support potentially available through the EU regional fund, Industry Commissioner Antonio Tajani said.
"We are ready to do whatever we can. We are committed to keeping the steel industry in Europe," Tajani told Reuters at the margins of a conference in northern Italy at the weekend.

Indian iron ore exports fall over 40 pct in Apr-June
MUMBAI, Sept 8 (Reuters) - Exports of iron ore from India, once the world's third-biggest supplier, fell more than 40 percent in the April-June quarter, mainly because of a slowing China as well falling global prices.
A 30 percent export duty imposed by the government led to a further drop in overseas sales, making Indian ores less attractive compared with Brazil or Australia.

Indonesia's Aug refined tin exports down 32 pct on low prices
JAKARTA, Sept 7 (Reuters) - Shipments of refined tin from Indonesia fell 32 percent in August on the month, a trade ministry official said on Friday, as current low prices for the metal hold down supplies from the world's top exporter.
Indonesia's August tin exports fell to 5,645.87 tonnes from 8,298.47 tonnes in July, as low prices forced tin producers to close operations and hold back on spot market sales. Shipments in July had dropped 14 percent on the month.

COLUMN-Indonesian pain threshold found, what next for tin?
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Sept 7 (Reuters) - Indonesian tin exports slumped in August to 5,646 tonnes, the lowest monthly print since January. Cumulative exports of 61,259 tonnes in the first eight months of this year represented a 10-percent decline from the same period of 2011.
This will come as no surprise to the tin market.Indonesian producers have made it quite clear that they think the recent international price  has been too low and have reacted accordingly.

China copper imports fall in August as demand slows
HONG KONG, Sept 10 (Reuters) - China's August copper imports fell 2.9 percent from the previous month, preliminary customs data showed on Monday, reversing July's uptrend as the economic slowdown in the world's top consumer of the metal cut demand.
The slight decline was in line with importers' expectations as most Chinese buyers did not place spot orders in August.

BASE METALS: Shanghai copper and zinc hit their highest levels in four months as hopes that the United States and China will roll out more stimulus measures offset a slight decline in China's August copper imports.  (Reuters)

PRECIOUS METALS: Gold inched up towards a 6-1/2-month high hit in the previous session, buoyed by expectations for the Federal Reserve to take imminent easing action after the latest data painted a bleak picture of the U.S. job market. (Reuters)

METALS-Copper, zinc at 4-month highs on stimulus hopes
SHANGHAI, Sept 10 (Reuters) - Shanghai copper and zinc hit their highest levels in four months on Monday as hopes that the United States and China will roll out more stimulus measures offset a slight decline in China's August copper imports.
"We are mostly looking forward to the Federal Reserve meeting for announcement of QEIII, which we think will boost commodities more than infrastructure-building programmes in China and more policy details from the euro zone," said a Shanghai-based trader with an international firm. "But if the Fed doesn't roll out a QEIII soon, base metals prices are expected to fall."

PRECIOUS-Gold hovers near 6-1/2-mth high on Fed stimulus hopes
SINGAPORE, Sept 10 (Reuters) - Gold held steady near a  6-1/2-month high on Monday, buoyed by expectations for the  Federal Reserve to take imminent easing action after the latest  data painted a bleak picture of the U.S. job market.
"The possibility of QE3 has definitely grown, but the risk  is also climbing as if we were about to draw the last card at a  poker game," said a Shanghai-based trader.

Baltic index down on weak panamax rates
Sept 7 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Friday on weak panamax rates.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 0.89 percent to 669 points, levels not seen since February.

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