Tuesday, September 11, 2012

20120911 1111 Global Markets & Commodities Related News.

Asia risk mkts consolidate, Euro, USD supply soars 11-Sep-2012 08:56 (Reuters)
SYDNEY, Sept 11 (IFR) - Risk markets mostly consolidated their recent heady gains overnight with some modest profit taking seen ahead of tomorrow’s German Constitutional Court ruling on the legality of the ESM bailout fund.
Spanish 2 and 10-year yields ended unchanged and up 5bp respectively at 2.80% and 5.62% while the FTSE 100 and DAX finished flat over the session.
China growth concerns were underlined by poor August trade data although Beijing has managed to provide comfort via its massive infrastructure spending plans that are underpinning commodity prices.
Expectations remain high for the Fed to announce QE3 when this month's 2-day FOMC meeting ends on Thursday.
Confirmation of this should strengthen the "Draghi risk rally" and further weaken the greenback.
US shares endured a late sell-off with the Dow Jones shedding 0.39% as Treasuries traded within very narrow ranges throughout New York trading.

[Primary market]
It was very busy in the European and the US markets overnight with [Commonwealth Bank of Australia] (Aa2/AA-/AA-) continuing its international issuance splurge overnight with three-tranche USD3.25bn 3 and 5-year fundraising.
The USD1bn 3-year FRN, USD1bn 3-year fixed rate and USD1.25bn 5-year fixed rate pieces priced at 3-month Libor+80bpm T+95bp and T+130bp respectively.
This follows Friday’s EUR750m (USD960m) 3-year FRN while on August 29 CBA visited the sterling market with a 3-year GBP300m (USD475m) deal.
At home the Aussie major launched a hybrid Tier 1 note (PERLS VI) last week with the margin due to be set today. Price talk was heard last week at 380bp-400bp over BBSW.
South Korea's [NongHyup Bank] (A1/A/A) raised USD500m from a 2.25% 5-year Reg S/144a note at T+165bp.

GLOBAL MARKETS-Asian shares ease ahead German ruling, Fed meeting
TOKYO, Sept 11 (Reuters) - Asian shares eased ahead of a key German ruling on the euro zone's bailout funds and the U.S. Federal Reserve's policy decision, repositioning from last week's rally spurred by heightened speculation for more stimulus globally.
"Looking at the U.S. and European markets, investor sentiment does not seem to be that strong." said Masayuki Doshida, senior market strategist at Rakuten Securities.

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.

OIL-Oil higher on expectations of Fed economic stimulus
NEW YORK, Sept 10 (Reuters) - Oil rose on Monday in choppy trading as supportive expectations that the U.S. Federal Reserve will act to stimulate the economy were countered by weak data from China that raised concerns about demand for oil.
"The market is clearly betting on a third round of quantitative easing from the United States," said Tamas Varga, analyst at PVM Oil Associates in London.

POLL - US crude stocks forecast down for 2nd week after Isaac
Sept 10 (Reuters) - U.S. crude oil stockpiles likely fell last week for the second straight time, with U.S. Gulf Coast oil production and imports still reeling after Hurricane Isaac, a preliminary Reuters poll showed on Monday.
Crude inventories are forecast to have fallen by 2.1 million barrels in the week to Sept. 7, according to the survey of seven analysts.

NATURAL GAS-US natgas futures end up 5 pct, 1st gain in 4 sessions
NEW YORK, Sept 10 (Reuters) - U.S. natural gas futures ended higher on Monday for the first time in four sessions, driven by technical buying after last week's slide and expectations for another light weekly inventory build on Thursday.
"People are expecting a small storage injection this week, but we're seeing a fall off in temperatures, which should lower demand and limit the upside," said Jonathan Lee, an energy procurement consultant at Ecova Inc. in Washington.

EURO COAL-Drops $1-$1.50 with weaker gas
LONDON, Sept 10 (Reuters) - Physical coal prices fell by $1.00-$1.50 a tonne in line with weaker UK gas, despite a rise in oil on expectations that the U.S. Federal Reserve will act to stimulate the economy.
"Prices dropped by $1.00 but there's very little activity," one European trader said.

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