20121008 1613 Global Markets & Commodities Related News.

STOCKS: European shares looked set to open lower and Asian shares fell as investors remained cautious about the outlook for the global economy and corporate earnings despite better-than-expected U.S. jobs numbers last week. The S&P 500 broke a four-day string of gains, ending slightly lower on Friday as an unexpected drop in the U.S. unemployment rate was overshadowed by concerns about the coming earnings season, which begins with Alcoa next week. (Reuters)

FOREX-Dollar dips vs yen, retreats from 2-week high
SINGAPORE, Oct 8 (Reuters) - The dollar eased against the yen on Monday, backing off from a two-week high hit late last week after a surprise drop in the U.S. unemployment rate soothed investor concerns about the U.S. economy's outlook.
The dollar fell 0.1 percent to 78.58 yen , down from Friday's high of 78.88 yen hit on trading platform EBS, the U.S. currency's strongest level since Sept. 19.

Semblance of stability as world financial leaders meet (Reuters)
When finance officials from the world's leading economies meet this week, it is against the backdrop of a global economy that shows a glint of stability, with a deluge of Chinese data due in the coming days at best expected to confirm that.

HSBC China services PMI recovers to 54.3 after one-year low (Reuters)
China's services sector rebounded in September after its growth hit a one-year low in August, according to a private sector survey on Monday that follows last week's much more gloomy official assessment.

Euro zone mulls 20-bln euro separate budget -report (Reuters)
European diplomats discussing the possibility of a separate budget to improve monetary union in the euro zone are considering a sum of around 20 billion euros ($26 billion), according to the Financial Times Deutschland (FTD).

ANALYSIS- Australia's success story takes a chilling turn
SYDNEY, Oct 8 (Reuters) - Australia faces a gathering threat to its 21-year run of recession-free growth that will likely require the central bank to cut interest rates to record lows and keep them there for some time, if the winning streak is to stretch to 22.
The slowdown in China has deflated prices for Australia's key resource exports while forcing miners to scale back on their most ambitious expansion plans. When the country reported its widest trade deficit in three years for August, it seemed just a taste of what was to come.

FOREX: The dollar eased against the yen, backing off from a two-week high hit late last week after a surprise drop in the U.S. unemployment rate soothed investor concerns about the U.S. economy's outlook. (Reuters)

GRAINS: U.S. corn slid for a second consecutive session, as investors took into account analyst forecasts estimating higher production ahead of a key U.S. government report on supply and demand of agricultural products due out later this week. Wheat rose 0.6 percent, recouping some of Friday's losses, as forecasts of dry weather this week in much of Australia's grain belt raised concerns about a further reduction in yields in the world's second largest exporter. (Reuters)

Next leg of soy drought rally hinges on USDA (Reuters)
The U.S. soybean market, which has tumbled 11 percent in three weeks following a drought-fueled rally, could get some fresh price direction when the U.S. government updates crop yield and production estimates for the United States on Thursday.


Euro Coal-Prices steady, market watches S.Africa strikes
LONDON, Oct 5 (Reuters) - Prompt physical coal prices were little changed on Friday after a series of trades for South African, delivered Europe and Newcastle cargoes.
Prices dipped by up to 25 cents a tonne, traders said.


Betting on black: China risks $14 bln on coal-to-gas pilot (Reuters)
China is spending $14 billion on pilot projects to turn coal in remote parts of the country into natural gas, a risky bet that could help meet the country's surging demand for the cleaner fuel.

OIL: Brent crude slipped below $112 per barrel, dropping for a second straight session on concerns a fragile global economy could curb oil demand, but supply worries stemming from tensions in the Middle East may help check losses. (Reuters)

Shanghai steel hits near 2-month top after break on demand hopes
SINGAPORE, Oct 8 (Reuters) - Shanghai rebar steel futures climbed nearly 2 percent on Monday to the highest in almost two months as Chinese traders returned from a week-long break armed with hopes demand in the world's top consumer will pick up as the economy stabilises.
Steel's rise suggests prices of raw material iron ore are likely to rebound this week, with Chinese mills also expected to return to the spot market to replenish stocks.

Higher risk investors eye minor metals on supply outlook
LONDON, Oct 5 (Reuters) - A tight supply outlook is expected to lift prices for a number of minor metals over the next three to five years, although investors will need to take on a higher degree of risk to endure illiquid and opaque markets in order to reap benefits.
While the weak global economy has sapped appetite for risk-sensitive commodities, longer-term investors are looking to strategic metals indium, germanium and tungsten as supplies are restricted and demand for high-tech gadgets is expected to remain resilient.

BASE METALS: London copper fell more than 1 percent, giving up last week's gains as worries about the world economy resurfaced, while traders awaited data from top consumer China later this week for clues on demand. (Reuters)

PRECIOUS METALS: Gold lost half a percent, on course for its sharpest one-day loss in three weeks as a surprisingly upbeat U.S. job market report dented the precious metal's appeal as a hedge against inflation. (Reuters)

Managed money increases US gold, silver, copper longs
Oct 5 (Reuters) - Hedge funds and money managers bought enough gold futures last week to acquire the largest overall bullish position in 7 months, as rising risk appetite among investors and hopes of more bullion-friendly monetary stimulus boosted gold buying.
For a third week, speculators also boosted platinum net longs to the largest effective bullish bet since at least October 2007 when Reuters began tracking the Commodity Futures Trading Commission's Commitments of Traders data. Supply worries due to mine labor unrest in South Africa prompted speculators to buy.

METALS-LME copper down as dollar firms after US jobs data
SHANGHAI, Oct 8 (Reuters) - London copper fell more than 1 percent on Monday, giving up last week's gains as worries about the world economy resurfaced, while traders awaited data from top consumer China later this week for clues on demand.
Fears over the outlook for the global economy, struggling with a worrisome debt crisis in Spain and Greece and a fragile economic recovery in the United States, are blunting optimism over the measures major central banks rolled out last month to support fragile economies.

PRECIOUS-Gold dips as upbeat US jobs data saps buying interest
SINGAPORE, Oct 8 (Reuters) - Gold lost half a percent on Monday, on course for its sharpest one-day loss in three weeks as a surprisingly upbeat U.S. job market report dented the precious metal's appeal as a hedge against inflation.
The U.S. unemployment rate unexpectedly dropped to a near four-year low of 7.8 percent in September, raising some doubts on whether the stimulus measures put in place by the Federal Reserve to boost the labour market would last as long as initially thought.


Baltic index up for sixth day on improved sentiment
Oct 5 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, gained for the sixth straight day on Friday on anticipation that China would build up inventories after returning from a week-long holiday.        
The main index, which gauges the cost of shipping commodities including iron ore, coal and grain, rose 30 points or 3.6 percent to 875 on Friday.