Friday, December 7, 2012

20121207 1640 Global Markets & Commodities Related News.


STOCKS: European stocks looked set to open slightly higher and Asian shares touched fresh 16-month highs with hints of renewed efforts to avert the U.S. "fiscal cliff" ahead of jobs data. Signs that China's economy was stabilising also lent support. U.S. stocks closed modestly higher on Thursday.  (Reuters)


FOREX-ECB knocks wind out of euro bulls, focus on US jobs
The euro languished near one-week lows against the dollar, having suffered a major setback the previous day when the European Central Bank divulged its bleak outlook for the euro zone and spoke of turning interest rates negative.
"The main trigger for the sharply negative euro reaction was the mention of a 'wide' discussion over rate cuts, while Mr. Draghi also said the ECB was 'operationally ready' for negative rates," said BNP Paribas strategist Vassili Serebriakov.


ECB discusses rate cut, depicts bleak 2013
The European Central Bank pondered an interest rate cut on Thursday and predicted the euro zone economy would shrink again in 2013, leaving the door open to a possible reduction in borrowing costs early next year. (Reuters)

U.S. likely to extend Iran sanction waivers-sources
The United States will likely give India, South Korea, Turkey and others another six-month reprieve on Friday from financial sanctions because they have reduced their purchases of crude oil from Iran, two U.S. government sources said on Thursday. (Reuters)

GRAINS: U.S. soybeans edged down, coming off a near one-month top hit in the previous session, but worries about unfriendly crop weather curbing South American supply set up prices for their strongest weekly showing in more than three months. Corn rebounded slightly from losses in the previous session, when it was hurt by weak U.S. exports, while wheat also firmed, amid concern over winter crops in the United States.   (Reuters)

U.S. winter wheat abandonment may top 25 pct-experts
U.S. winter wheat farmers could abandon more than a quarter of the new wheat crop due to devastating weather, though decisions on abandonment will not be made until spring, experts said this week. (Reuters)

ArcelorMittal pulls French bid for EU steel project
A politically charged deal between the French government and ArcelorMittal to preserve jobs at an ailing steelworks looked at risk of unravelling on Thursday after the global steel giant ditched a bid to run an EU-funded project there. (Reuters)

Enbridge expands oil pipeline plan to C$6.2 bln
Enbridge Inc on Thursday proposed a C$6.2 billion expansion of its oil pipeline system, aimed at moving surging volumes of light crude from Western Canada and the North Dakota Bakken to refineries in the eastern part of the continent and U.S. Midwest. (Reuters)

OIL: Brent crude steadied above $107 per barrel, but prices were headed for their biggest weekly loss since October on worries about the euro zone economy and a looming fiscal crisis in the United States.  (Reuters)

BASE METAS: London copper was steady and was set to close the week little changed as traders focused on the progress of talks in the United States to avert a looming fiscal crisis, as well as the November jobs report. (Reuters)

PRECIOUS METALS: Gold nudged higher, extending gains from the previous session when bullion was boosted by prospects of future interest cuts by the European Central Bank, but the precious metal was headed for its second straight week of decline.  (Reuters)


PREVIEW-China iron ore, crude imports seen up in Nov on restocking
BEIJING, Dec 7 (Reuters) - China's imports of crude oil and iron are expected to rise in November as refineries raise runs and steel mills restock, but an uncertain economic outlook continues to hold back purchases of a range of commodities.
The pace of activity in China's vast manufacturing sector quickened for the first time in 13 months in November, a survey of private factory managers found, adding to evidence that the economy is reviving after seven quarters of slowing growth.

China daily steel output rises 0.4 pct in late Nov -CISA
SHANGHAI/BEIJING, Dec 7 (Reuters) - China's steel mills produced an average of 1.9599 million tonnes of steel a day over the Nov. 21-30 period, an increase of 0.42 percent over the previous 10 days, data from the China Iron and Steel Association showed on Friday.
Chinese steel output normally tails off as winter approaches and construction activity in northern regions slows, but it has remained at relatively high levels throughout November.

METALS-LME copper holds above $8,000 ahead of US jobs data
London copper was steady, and was set to close the week little changed, as traders focused on the progress in U.S. talks to avert a looming fiscal crisis while also waiting for a crucial jobs report from the world's largest economy.
"China data of late has been looking relatively positive. The wild card is the FOMC. We think that they may talk about extending the QE (quantitative easing) program ... that could be a little positive for commodities in general," said Nick Trevethan, senior commodity strategist at ANZ in Singapore.
"That said, fiscal cliff worries are likely to keep a lid on things for the most part. We are looking to see a small pull back by the end of the year," he added.

PRECIOUS-Gold inches up; headed for 2nd week of losses
Gold nudged higher, extending gains from the previous session when bullion was boosted by prospects of future interest cuts by the European Central Bank, but the precious metal was headed for its second straight week of decline.
"Gold's fundamentals are intact," said Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen.
"Investors seem to regard $1,690 as an attractive level to buy gold."


Baltic index down on weak capesize rates
Dec 6 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Thursday for a sixth straight session as rates for capesizes and panamaxes continued to remain weak.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 3.13 percent to 990 points.

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