Friday, June 15, 2012

20120615 1809 FCPO EOD Daily Chart Study.

FCPO closed : 2848, changed : +2 points, volume : lower.
Bollinger band reading : downside biased with possbile pullback correction.
MACD Histogram : falling lower, seller in control.
Support : 2800, 2770, 2750, 2720 level.
Resistance : 2850, 2900, 2920, 2950 level.
Comment :
FCPO closed 2 ticks higher with declined volume traded. Soy oil price currently rebounding upwards after overnight closed substantitaly lower by more than 2% while crude oil price continue to trade firmer.
Market swing between gains and losses after 2 cargo surveyors reported higher and improving export data plus stabling crude oil price offseting some of yesterday negative sentiment knowing the fact that stock level are at low level.
End of day aaily chart reading remained suggesting a downside biased market development with possible pullback correction.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20120615 1729 FKLI EOD Daily Chart Study.

FKLI closed : 1582.5 changed : +13.5 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histogram : turned upward, buyer seller battling.
Support : 1580, 1570, 1565, 1550 level.
Resistance : 1590, 1600, 1610, 1620 level.
Comment :
FKLI closed rallied higher with improved volume transacted doing 3 points premium compare to cash market that also closed higher. Overnight U.S. markets closed 1.24% higher and today Asia markets ended substantially higher while European markets currently registering gains.
Traders switch to speculative buying betting that U.S. and China to implement measure to boots growth putting aside Greece coming Sunday election development.
Technical chart study still suggesting a correction range bound little upside biased market development possibly testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120615 1710 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : little upside biased.
Hang Seng chart reading : little upside biased with possible pullback correction.
KLCI chart reading :  correction range bound little upside biased testing resistance level.

20120615 1637 Global Market & Commodities Related News.

Asian shares rose as traders placed modest bets that central banks will unleash further monetary stimulus measures, but volumes were razor-thin amid fears that Sunday's Greek election could trigger market turmoil.U.S. stocks jumped on Thursday after news major central banks are preparing coordinated action if the results of Greek elections this weekend lead to turmoil in financial markets.

The euro held firm against the U.S. dollar reflecting  hopes of central bank action to counter potential fallout from Sunday's crucial election in Greece, and after disappointing U.S. economic data.

FOREX-Euro holds firm on hopes of central bank action, soft US data
TOKYO, June 15 (Reuters) - The euro held firm against the U.S. dollar, reflecting  hopes of central bank action to counter potential fallout from Sunday's crucial election in Greece, and after disappointing U.S. economic data.
G20 officials told Reuters that central banks from major economies stand ready to take steps to stabilize financial markets by providing liquidity and preventing a credit squeeze if the Greek election result roils markets.

US Grain Exports-Corn sales fall to 11-week low
U.S. corn export sales tumbled to an 11-week low last week, with purchases for shipment in the current season the lowest for the marketing year, as prices soared more than 8 percent, traders said following a weekly U.S. Department of Agriculture report.

Brazil's early sugar output washed out by rain
An unusually wet May for the world's biggest sugar cane belt in center-south Brazil slowed the output of sugar early in this harvest season, industry association Unica said on Thursday.

Argentina's key soy harvest slowed by rain-exchange
Argentine farmers have gathered nearly all 2011/12 soybeans but final harvesting is being slowed by heavy rains in areas parched by drought earlier in the season, a leading grains exchange said on Thursday.

Ivorian cocoa mid-crop seen short, main crop early
Ivory Coast's western cocoa region of Soubre will see a short mid-crop harvest this year due to an extended dry season, but abundant rainfall since early April is likely to produce an early start to the 2012/2013 main crop, farmers said on Thursday.

China think-tank cuts 2012 winter wheat estimate on disease
China's official grain think-tank has lopped about 2 percent off its estimate of 2012 winter wheat output in the world's largest producer and consumer of the grain, where widespread damage from a fungus disease looks set to spur imports.

Brazil grain industry raises '11/'12 soy estimate
Brazil's grain industry association Abiove said on Thursday it estimates the 2011/12 soybean crop that finished harvest in May at 66.2 million tonnes, up slightly from the 65.9 million tonnes forecast in April.

Chicago wheat extended gains from the previous session, after China's official think-tank revised down the nation's winter crop estimates, raising the prospect of higher imports by the world's biggest producer and consumer of the grain.

Euro Coal-S.African hits fresh low, comes to Europe
LONDON, June 14 (Reuters) - South African prompt physical coal prices traded at the lowest level since February 2010 on Thursday, $81.65 a tonne FOB, as oversupply continued to weigh on the market.
South African prompt cargoes are being sold into Europe for the first time in months because freight rates are so low and European buyers are seen as more reliable counterparties than some who have recently defaulted or re-negotiated prices in Asia, traders and utilities said.

German hard coal imports seen down 7 pct in 2012
DUISBURG, Germany, June 14 (Reuters) - German imports of hard coal are likely to fall by seven percent year-on-year to 45 million tonnes in 2012, importers said on Thursday, citing the euro zone's economic crisis and competition from a rising share of renewable energy in power generation.
The likely total this year would be down by 3.4 million tonnes from 48.4 million in 2011, said importers group VDKI at its annual news conference.

India took 1.4 mln T S.Africa coal in May, down m/m
LONDON, June 13 (Reuters) - South Africa exported 4.6 million tonnes of thermal coal in May with Asia including India taking 3.6 million tonnes and the rest going to Atlantic markets, exporters said.
India imported 1.4 million tonnes of coal from South Africa's Richards Bay Coal Terminal (RBCT), down from 1.6 million in April.

Brent futures rose towards $98 extending gains after producer group OPEC agreed to keep its output target unchanged for the second half of the year, although uncertainty surrounding Europe's debt crisis capped further advances.

OPEC hopes Saudis will cut to output target
OPEC left oil output limits on hold on Thursday, powerless to do anything other than hope top producer Saudi Arabia scales back supplies unilaterally soon to stem a $30 slide in prices.

India seeks more oil from OPEC members except Iran
India is seeking extra oil supplies from OPEC members Saudi Arabia, Qatar and Algeria, as the country, already cutting its dependence on sanctions-hit Iran, works to secure additional barrels to feed its expanding refining capacity.

Iron Ore-Spot prices extend gains despite slow China steel mkt
SINGAPORE, June 15 (Reuters) - Price offers for Australian and Brazilian iron ore cargoes in top market China rose, as benchmark rates stretched gains to a fifth day, with traders betting on more price rises while mills were hesitant to buy more amid slow steel demand.
Iron ore has gained 2.5 percent so far this week, while Chinese steel prices are nearly flat, underscoring a divergence between markets that are typically closely linked.

Stainless steel output shrinks in Q1-ISSF
Global stainless steel production fell by 2.8 percent in the first quarter of the year, with an output reduction in all regions, according to a report from industry body ISSF, as producers battle overcapacity and sluggish demand.

Copper market tight, China demand strong-Xstrata
The copper market is tight and demand from top metals consumer China is strong, the head of Xstrata's  copper unit Charlie Sartain said on Thursday, as Europe's crisis and fears of a slowdown in the Asian giant spook markets.

S.Korea to launch copper ETF in July to boost stocks
SEOUL, June 15 (Reuters) - South Korea will start a copper-backed exchange-traded-fund (ETF) in July to boost its stockpiles of the industrial metal and help curb inflation in Asia's fourth-largest economy, finance ministry said on Friday.
Next month's listing means a few month of delay as the state-run Public Procurement Service (PPS) had said earlier it would launch the ETF by the first quarter of 2012.

Copper prices rose and were on track to post their first weekly rise in seven weeks, helped by reports that major central banks are poised to inject liquidity should the results of weekend elections in Greece unleash havoc in financial markets.

Gold edged up extending its winning streak to a sixth session as sluggish U.S. data boosted hopes for monetary easing, while investors were looking to a key vote in Greece on weekend that threatens to break up the euro zone.

METALS-Copper on course to end 6-week losing streak; Greece eyed
SHANGHAI, June 15 (Reuters) - Copper prices rose and were on track to post their first weekly rise in seven weeks, helped by reports that major central banks are poised to inject liquidity should the results of weekend elections in Greece unleash havoc in financial markets.
Such a move could help boost demand for industrial metals, although optimism was tempered by disappointing jobs data from the United States that added to fears that a recovery in the world's largest economy may be slowing.

PRECIOUS-Gold edges up on weak US data; caution on Greece
SINGAPORE, June 15 (Reuters) - Gold edged up, extending its winning streak to a sixth session as sluggish U.S. data boosted hopes for monetary easing, while investors were looking to a key vote in Greece on weekend that threatens to break up the euro zone.
For a second day in a row, data pointed to a slower U.S. recovery, opening the door wider for the U.S. Federal Reserve to launch more stimulus, which would help burnish gold's appeal as an inflation hedge.

Smaller vessels drive Baltic index up
June 14 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, rose for a fifth straight session on Thursday as a spurt in Atlantic activity boosted rates for smaller vessels.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, rose 10 points or 1.11 percent to 912 points.

20120615 1147 Global Economy Related News.

The Bank of Thailand left the benchmark interest rate unchanged at 3.0% for a third straight meeting on easing inflationary pressures, but warned about risks to the global economy. (Reuters)

Thailand’s Commerce Ministry will announce a measure to curb prices of fast-food dishes at THB30-35 per dish in 38 provinces to clamp down on the cost of living. (The Nation)

Indonesia’s government has issued a new rule to exempt import duties for machinery and goods used in automobile production facilities in a bid to promote the implementation of low-cost green cars. (The Jakarta Post)

China: Could see more rate cuts, no stimulus package
The Chinese government could implement two more interest rate cuts and three more reserve ratio requirement cuts in the remainder of the year, a former planning official said. But China does not need another stimulus package like the one in 2008, which super-charged growth but left local governments saddled with debt, said Cao Wenlian, who was earlier deputy director of the finance department at the National Development and Reform Commission and is now deputy secretary general of the China Center for International Economic Exchange (CCIEE), a government think tank. (The Star)

EU: Merkel to tell G-20 Germany can't save global economy alone
Germany’s Chancellor Angela Merkel rejected quick solutions proposed to fix Europe's financial crisis such as joint debt sharing, saying Germany can't save the world economy alone and fellow G-20 countries must help. The debt crisis and Germany's role in stemming it will be the "central topic" at next week's G-20 summit in Mexico. "All eyes are on Germany, but we also know that Germany's power is not infinite. So our responsibility as Europe's largest economy is to deploy our strength credibly, so that we can be of full use to Europe," she said. (Bloomberg)

EU: Euro zone may tinker with Greek bailout terms after election
The euro zone will not tear up the main targets of Greece's bailout no matter who wins Sunday's elections, but it might consider giving a new government in Athens some leeway on how it reaches them, euro zone officials said. Even that offer would depend on a government being in place that was prepared to stick to the prescribed austerity path and some policymakers are reluctant to go even that far. If Greece rejects the bailout deal it struck in February, all bets would be off and pressure would grow on it to quit the currency bloc. (Reuters)

Spain: Credit rating almost junk
Spain faced mounting pressure yesterday to bolster confidence in its financial system just days after accepting a EUR100bn plan to rescue its banks. Prime Minister Mariano Rajoy called for greater European fiscal and banking integration to save his country and the 17-nation euro, following Moody's move to slash the government's credit rating by three notches to just above junk status while also putting it on review for another possible downgrade in the coming months. (Bloomberg)

UK: King says stimulus case growing as BOE steps up crisis response
BOE Governor Mervyn King said more economic stimulus may be needed to counter the "black cloud of uncertainty" from the euro crisis, and a new plan to spur bank lending may be in place in a few weeks. "With signs of deterioration in the outlook, especially in world markets, the case for a further monetary easing is growing," King said. (Bloomberg)

EU: Spain, Cyprus have not sought aid
Neither Spain nor Cyprus has asked for financial assistance from IMF, IMF spokesman Gerry Rice said. Nonetheless, an IMF mission is in Spain as part of its annual assessment of the Spanish economy. The mission is expected to release its findings today. (MarketWatch)

The US’ Aaa credit ranking from Moody’s is unlikely to change this year amid the presidential election and potential for a wave of tax increases and spending cuts to take effect, according to Moody’s senior credit officer Steven Hess. (Bloomberg)

US business inventories rose 0.4% mom in Apr (0.3% in Mar), more than consensus of 0.3%. (Bloomberg)

US: Consumer prices fell in May by most in three years
The cost of living in US fell in May by the most in more than three years as fuel prices retreated, buttressing Federal Reserve projections that cheaper commodities will help reduce inflation. The consumer-price index declined 0.3% marking the biggest drop since Dec 2008, after no change the prior month. The core measure, which excludes more volatile food and energy costs, increased 0.2% for a third month. (Bloomberg)

US: Jobless claims rise by 6,000
The number of people filing initial applications for unemployment benefits rose last week by 6,000 to 386,000. The rolling four-week average of jobless claims climbed by 3,500 to 382,000, the highest level since late April. The ranks of people receiving state unemployment benefits dropped 33,000 to 3.28m during the week that ended 2 June. (Bloomberg)

20120615 1146 Malaysia Corporate Related News.

More management changes are underway at Malaysian Airline (MAS) with CFO Rozman Omar to re-join his previous company AirAsia as regional head of finance effective July. The departure of Rozman follows the announcement of group deputy CEO Mohammed Rashdan Yusof’s resignation. Another key official roped into MAS from AirAsia is engineering head Azhari Mohd Dahlan. Sources say it would not come as a surprise if Azhari leaves MAS to go back to AirAsia. AirAsia group CEO Tan Sri Tony Fernandes said Datuk Bernard Francis will re-join the group as commercial head of Indonesia AirAsia. Francis was with AirAsia until 2005 after which he joined MAS and held the position as senior general manager of network, revenue management and distribution, but later left MAS in 2011. AirAsia is due to announce the appointment of a new CEO to replace Fernandes on Monday. The low-cost carrier expects to place an order of 50 to 100 A320 planes in one or two months to cater to its expansion plans in the near term, Fernandes added. (Financial Daily)

MSM Malaysia Holdings (MSM) has set aside about RM100m to acquire sugarcane plantations in South-East Asia as part of its upstream business, its executive director Datuk Sabri Ahmad said. "We are looking at places like Lombok in Indonesia and Myanmar due to suitable agro-climatic conditions. We are still in negotiations with some parties there," said Sabri. Sabri added that the RM100m was part of the RM423m that it raised from its initial public offering in June last year. MSM CEO Chua Say Sin said the company has also set aside RM85m in capital expenditure this year. (Malaysian Reserve)

Malakoff is planning an IPO that may raise US$1bn (RM3.2bn) and value Malakoff at US$3.5bn (RM11.5bn). The company which is 51% owned by MMC Corp has invited six banks to submit proposals for the IPO by 18 June. The share sale may take place by the end of 2012. (Bloomberg)

Dialog Group has commenced operations of its Jubail Supply Base in Saudi Arabia with the award of a RM17m contract from Snamprogetti Saudi Arabia Co Ltd. The supply base, which requires an investment of approximately RM93.5m, serves as a one-stop integrated offshore logistic hub and a resource centre for oilfield services, equipment and supplies. The contract from Snamprogetti calls for logistic services to move cargo from land to offshore work site for a Saudi Aramco development. (BMSB)

Wah Seong Corp and little known Pan Sarawak Holdings have emerged as the front runners to acquire a strategic 26.9% equity interest in oil services company Petra Energy. Wah Seong deputy MD Giancarlo Maccagno acknowledged that the company was interested in the block. "We are interested in it, but we have yet to make any official bid... we are always on the lookout for good deals," said Maccagno. (Financial Daily)

Pudu Jail could be redeveloped into an integrated transport hub complete with a shopping mall, to attract domestic and foreign direct investments, UDA Holdings chairman Nur Jazlan Mohamed said. UDA is in favour of EICEC's proposal, which moves along the lines of Elements, a large shopping mall with an ice rink and a 1,600-seat cinema that is located directly above the Kowloon MTR station in Hong Kong. The MOF's plan favours splitting the 8ha plot into three parcels, mainly to be given to bumiputera developers, the paper reported. The Pudu redevelopment is part of the ETP to transform Malaysia into a high-income nation by 2020. (SBT)

Fajarbaru Builder is understood to have submitted bids to build stations for the RM40bn MRT project. It is eyeing contracts to build MRT stations under packages S4 and S5, which closed on May 28 and June 11, respectively. It is understood that the combined value of the two packages to build the seven stations is about RM650m. Other companies which had also submitted proposals are WCT, Sunway, Muhibbah Engineering, and IJM Corp. Their bids range between RM550m and RM700m. (BT)

The importation of eight tariff lines of alloy steel products will be subject to licensing requirements from 15 June, the International Trade and Industry Ministry (MITI) said. The imposition of import licensing requirements will ensure that imported alloy steel products meet established quality and safety requirements. It is also to facilitate the monitoring of trade in these products. (Bernama)

Dutch Lady Milk Industries is on track to meet its RM1bn revenue target in FY13, even as the current year’s challenges remain unpredictable. Dutch Lady, which turns 50 next year, posted a revenue of RM810m in FY11, while its revenue in the first quarter ended 31 March 2012 was RM214m. The dairy company, which controls 19% of the total dairy market in Malaysia, expects its performance this year to be affected by the global economic uncertainties and potential high dairy prices. Nevertheless, MD Rahul Colaco projects that Dutch Lady will be able to outperform the market, which in the past 12 months to May 2012 has been growing by about 6%. "We are ambitious to grow faster than the market and to outgrow our competitors," he said, adding that an AC Nielsen report revealed that the market has slowed since 2011 when it grew at 8.5%. Dutch Lady's two main production is powdered milk for children under the Dutch Lady and Friso brands and liquid milk. It commands a 22% market share in children's powdered milk, just a percentage shy of leading rival Dumex. In the liquid milk, Dutch Lady ranks first, controlling half of the market. Its closest competitor is another Dutch company, Nestle, which holds a 20% share. Colaco said that it is looking at a possible less than 2% price increase on some specific products in 2012. Last year, prices of selected products were up by an average of 5%. The company, which is part of the world's largest cooperative, The Royal FrieslandCampina, has a slight advantage in terms of sourcing for dairy raw materials. "We are able to buy at the right time at the right price, which helps give a competitive advantage in terms of slighter better purchase price," Colaco said. In anticipation of higher demand for liquid milk in 2013, the company will expand its capacity. However, no investment figure was revealed. (BT)

KPJ Healthcare hopes to conclude two acquisitions by year-end, said MD Datin Paduka Siti Sa'diah Sheikh Bakir. "There are offers which we are assessing both locally and internationally. We hope to conclude at least one local acquisition and one overseas by year-end," said Siti Sa'diah. She said KPJ was keen on acquiring operational hospitals and was more interested in Asean than other regions. Local standalone hospitals were also its potential acquisition targets. (StarBiz)

Bina Puri Holdings secured a RM31.8m job to build a mini hydro power plant in Indonesia via its 80% indirect subsidiary, PT Megapower Makmur. The tenure of the power purchase agreement for the plant is 15 years effective from the date of commercial run of the power plant and the construction period for the plant shall take 24 months. (Malaysian Reserve)

Conglo: Johor Corp's MYR3b Islamic MTN oversubscribed 3.68 times. Johor Corporation's MYR3b Islamic medium term notes (IMTN) programme, issued under the Wakalah Billstithmar, was oversubscribed by 3.68 times. The IMTN received strong interest from financial institutions, insurance and Takaful companies, asset managers and corporate investors. (Source: The Star)

Port: Seaport Terminal wins bid for Penang Port. Seaport Terminal (Johor) Sdn Bhd is the successful bidder for the proposed privatisation of Penang Port Sdn Bhd. Nevertheless, negotiation with the company on the privatization agreement is still ongoing. (Source: The Star)

Takaful Malaysia: Close to sealing UK property investment deal. Syarikat Takaful Malaysia Bhd is close to concluding an overseas investment deal specifically in the UK property market which would mark its foray into overseas property investments. (Source: The Star)

Ramunia: Gets MYR177.5m contracts from Sarawak Shell. Ramunia Holdings Bhd's unit has secured two contracts worth MYR177.5m from Sarawak Shell Bhd to fabricate the substructure and topsides for its platforms. Ramunia Fabricators Sdn Bhd received the letter of awards from Sarawak Shell to undertake the contracts which ranged from fabrication to testing, load-out and tie-down of the substructures and topsides. (Source: The Star)

Pos Malaysia: Looks to grow income streams. Pos Malaysia Bhd will spend MYR150m annually over the next five years to diversify its revenue streams. Between 2015 and 2017, Pos Malaysia aims to establish regional presence via alliances or partnership and hopes to register significant revenue from overseas operations. (Source: Business Times)            

Sime Darby to spend RM1.4bn on Weifang port
Sime Darby plans to invest some RM1.4bn in the next three years to expand its port operations in Weifang, Shandong province in China. The investment will help Weifang Sime Darby Port raise its capacity from about 18m tonnes of cargo a year to over 50m tonnes by 2017. The group may top up another RM350m to expand the port further. Weifang Sime Darby Port is located in the prime region of Bohai Sea’s economic belt and handles 30 different types of cargo including coal, petroleum and liquid products. (BT)

Kenanga buys ECM Libra IB for RM875m
K&N Kenanga has sealed the deal to purchase ECM Libra’s investment banking and stockbroking businesses for RM875m. The purchase will be satisfied by RM650m cash and the issuance of 95m unsecured loan stocks and 120m new Kenanga shares to ECM Libra, according to sources. The RM875m price tag values ECM Libra IB at 1.27x book value of RM688m as of 31 Jan 2012. The total cash payout for the deal is RM0.68 per share, while the new Kenanga shares and loan stocks are valued at RM0.63 and RM0.05 per share. (Financial Daily)

Uncertainty looms over MEX sale
Maju Holdings’ proposed RM1.7bn sale of Maju Expressway (MEX) to EP Manufacturing (EPMB) appears to be in limbo, as it has emerged that Maju Holdings has yet to obtain the government’s approval to sell the highway concession 3 months after the proposal was announced. Both parties have agreed to extend the period for the fulfillment of the acquisition agreement’s conditions to 14 Aug from 15 June. The bone of contention is that Maju Holdings was given RM976.7m in government funding for the construction of the elevated portion of the highway that runs between KL and Sepang. The opposition party is against the proposed sale, saying the government should buy back the concession. (Financial Daily)

MAS: MASkargo to pay RM20.5m in five installments to settle alleged price fixing
MASkargo Sdn Bhd has agreed to pay a penalty of A$6m and contribute A$500,000 to the Australian Competition and Consumer Commission's (ACCC) legal costs (approximately RM20.5m) in five  installments over 24 months to settle an alleged price fixing litigation. Under the terms of the settlement, MASkargo admits - for the purpose of the proceedings only  - that it reached an understanding with certain airlines regarding the level of fuel surcharges from 2002-2005, security surcharges from 2001-2005 and customs fees from 2004-2005, to be applied in relation to the supply of services from Indonesia to Australia, said MASkargo. MAS and MASkargo were served with a Statement of Claim by the ACCC on April 9, 2010. The settlement ends the ACCC's claims against MAS and MASkargo in relation to the alleged price fixing of surcharges relating to certain air freight services, MASkargo said. On Thursday, the Federal Court of Australia made orders consistent with an agreement between Malaysia Airlines (MAS), MASkargo and the ACCC to settle the Air Freight litigation. MASkargo said the settlement follows that by Qantas, British Airways, Air France/KLM, Cargolux, Martinair, Japan Airlines and Korean Airlines. (Bernama)

Axis-REIT: To buy Wisma Academy, Annex for RM85m
Axis REIT trustee, OSK Trustee Bhd has entered into two sale and purchase agreements to acquire Wisma Academy and the Annex in Petaling Jaya for RM85m from Academy Resources Sdn Bhd. Stewart LaBrooy, CEO of Axis REIT Managers Bhd, the manager of the trust, said with the proposed acquisitions, the gearing level of the trust would be at 35%. He said as part of the trust’s capital management strategy, it has proposed to allot and issue up to 90.7m new units, representing up to 20%, of the existing approved fund size of Axis REIT of 453.8m units. (Financial Daily)

UEM Land: Maintains RM3bn sales target despite Euro woes
UEM Land is maintaining its target of RM3bn sales for this year despite concerns over the Eurozone crisis as its projects in Nusajaya have the "ingredients" to woo a wider investor base from local and foreign investors from China and the United Kingdom. MD and CEO Datuk Wan Abdullah Wan Ibrahim said the projects, which contributed 45% to revenue, were attractive to investors due to their new catalyst development to drive growth in the Nusajaya region. He said that these include retail projects, campuses for research, industrial parks for small and medium enterprises and all types of residential properties. (Bernama)

TAS Offshore: Unit lands new contract worth RM49m
TAS Offshore’s unit has secured a new contract for the sale of a unit of anchor handling tug/oil recovery/support vessel for RM49m. TAS said the vessel was being sold to one of its overseas customers that had purchased 17 vessels from the company. It said the vessel was expected to be delivered by early 2014. (Financial Daily)

Genetec Technology: Order book swells to RM149.3m with new jobs
Genetec Technology’s current order book-to-date rose to RM149.3m after the company secured new orders worth RM36.9m. The company said the order book was expected to contribute positively to its earnings for its financial year ending March 31, 2013. Genetec executive chairman Ron Ortscheid said the current order book of RM149.3m was about 2.8x more than its previous order book showed the sustainability of its earnings in the coming quarters. He said the company saw increased orders from overseas especially from the United States. Ortscheid said that while Hard Disk Drive (HDD) sector remained its main revenue contributor, the company had clinched orders across several non-HDD sectors, which accounted to approximately 48% of total order book. (Financial Daily)

20120615 1138 Global Market Related News.

Asian Stocks Rise as Stimulus Hopes Offset Europe Concern (Source: Bloomberg)
Asian stocks gained, with the regional benchmark index heading for its biggest weekly advance since February, as optimism the Federal Reserve will act to stimulate economic growth tempered concerns that Europe’s debt crisis will worsen. Li & Fung Ltd. (494), a supplier of toys and clothes to retailers including Wal-Mart Stores Inc., rose 1.1 percent in Hong Kong even as U.S. jobless claims rose unexpectedly. Esprit Holdings Ltd. gained 9 percent, heading for its first advance in three days, after the clothier said it will continue with its transformation strategy after both its chairman and chief executive officer quit. Samsung Electronics Co., the world’s biggest mobile-phone maker that gets about 19 percent of sales from Europe, dropped 3.3 percent in Seoul. The MSCI Asia Pacific Index (MXAP) added 0.4 percent to 113.44 as of 11:10 a.m. in Tokyo, erasing losses of as much as 0.2 percent.
The gauge dropped 12 percent from this year’s peak on Feb. 29 through yesterday amid concern growth in the U.S. and China is slowing and as Europe’s debt crisis intensified. “We’re likely to see increasing talk from governments about how they can encourage the growth agenda,” said Angus Gluskie, who helps manages more than $350 million at White Funds Management in Sydney. “That will benefit the markets as we move towards the second half of the year. There’s plenty of uncertainties out there. We may still see investors continue to be nervous about Spain and Italy in the aftermath of Greece’s election.”

Japan Stocks Rise as U.S. Unemployment Fans Stimulus Bets (Source: Bloomberg)
June 15 (Bloomberg) -- Japanese stocks rose as an increase in U.S. jobless claims fueled speculation central banks will take new steps to spur growth. Trading volume was a third below average before elections this weekend that may determine Greece’s future in the euro. Honda Motor Co. (7267), which depends on North America for 44 percent of its sales, rose 0.4 percent after falling as much as 0.4 percent. Renesas Electronics Corp., a chipmaker that has lost more than a quarter of its value this year, climbed 3.8 percent after a report it will shut or sell half its plants and cut as much as 30 percent of its workers. DeNA Co. (2432) surged 14 percent after the social-gaming company said it plans to buy back as much as 10 percent of its shares. The Nikkei 225 Stock Average (NKY) added 0.3 percent to 8,595.88 as of the 11:30 a.m. trading break in Tokyo, trimming gains of as much as 0.7 percent. Volume was 34 percent below the 100-day average. For the week, the gauge has risen 1.6 percent.
The broader Topix (TPX)  index advanced 0.3 percent to 727.88 today. “Investors are on guard for the Greek election on June 17,” aid Matthew Sherwood, Sydney-based head of research at Perpetual Investments, which manages about $23 billion. Markets “believe that low inflation plus increasingly soft labor-market numbers equals another round of quantitative easing,” he said.

U.S. Stocks Rise on Reports Policy Makers May Take Action (Source: Bloomberg)
U.S. stocks advanced, erasing a weekly loss for the Standard & Poor’s 500 Index, amid reports policy makers may take steps to assist economies battered by Europe’s sovereign debt crisis. All 10 groups in the S&P 500 rose, led by telephone service providers. Home Depot Inc. and Walt Disney Co. added at least 2.1 percent after data on inflation and jobless claims fueled bets the Federal Reserve will act to spur growth. Exxon Mobil Corp. (XOM), the largest energy producer by market value, increased 1.9 percent as oil rallied. Travelers Cos. and Bank of America Corp. (BAC) gained at least 2.1 percent as financial companies jumped. The S&P 500 gained 1.1 percent to 1,329.10 at 4 p.m. in New York. The benchmark index for American equities is up 0.3 percent for the week. The Dow Jones Industrial Average rose 155.53 points, or 1.2 percent, to 12,651.91 today. Trading volume for exchange-listed stocks in the U.S. was about 6.6 billion shares, 2.5 percent below the three-month average.
“It’s a sign that they’re talking and that’s good,” Rod Smyth, the Richmond, Virginia-based chief investment strategist of Riverfront Investment Group, which manages $3 billion, said in a telephone interview. “Equity investors are poised with the knowledge that if European policy makers can figure out a way to stem the vicious cycle that’s been building, then stocks look really cheap and bonds look expensive.”

European Stocks Fall a Second Day; BSkyB, BT Group Slide (Source: Bloomberg)
European stocks dropped for a second day as Moody’s Investors Service downgraded Spain and Cyprus, while Switzerland’s central bank said that Credit Suisse Group AG (CSGN) must increase its capital this year. Credit Suisse slumped 10 percent to its lowest price since 1992. British Sky Broadcasting Group Plc (BSY) and BT Group Plc (BT/A) tumbled 3.5 percent each, after winning the rights to show live English Premier League soccer matches by paying an extra 70 percent. Nokia Oyj (NOK1V) plunged 18 percent after reducing its outlook for the second quarter. The Stoxx Europe 600 Index (SXXP) dropped 0.3 percent to 241.84 at the close of trading, extending its slide from this year’s high on March 16 to 11 percent.
“The big news obviously is Spain is ticking up, so the question is how long can they sustain this before having to go back for more funds,” said Chris Beauchamp, a market analyst at IG Index in London. “It’s the rising yields and then you factor in the Italian yields and then obviously you have the Greek elections so you’ve got a perfect storm brewing.” The VStoxx Index, a measure of Euro Stoxx 50 Index options prices, slipped 2.5 percent to 33.01, snapping three days of gains. The volume of shares trading on the Stoxx 600 today was 18 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.

Treasuries Advance on Bets Fed Will Take Steps to Spur Economy (Source: Bloomberg)
Treasuries rose, halting a decline from yesterday, before U.S. data forecast to show production slowed and consumer confidence fell, adding to prospects that the Federal Reserve will take more steps to stimulate growth. The central bank’s policy-setting Federal Open Market Committee will meet June 19-20 as slowing employment growth at home and a deepening crisis in Europe weigh on the economic outlook. Demand for the safety of U.S. government debt was limited on speculation central banks will coordinate assistance if Greek elections on June 17 increase financial-market turmoil. “The Fed is expected to do something to counter an economic slowdown,” said Hiromasa Nakamura, who helps oversee the equivalent of $41.9 billion as an investor at Mizuho Asset Management Co. in Tokyo. “That’s likely to keep yields under downward pressure.”
Ten-year yields slid 1 1/2 basis points to 1.63 percent at 9:59 a.m. in Tokyo from yesterday, when they rose five basis points, according to Bloomberg Bond Trader prices. The 1.75 percent note due in May 2022 gained 1/8, or $1.25 per $1,000 face amount to 101 1/8. The rate has fallen one basis point after dropping to a record 1.4387 percent on June 1. A basis point is 0.01 percentage point. U.S. data due today are projected to show the recovery in the world’s largest economy is losing momentum. Growth in industrial production probably slowed to 0.1 percent last month from 1.1 percent in April, according to the median estimate of economists surveyed by Bloomberg News.

Dollar Set for Weekly Drop Before U.S. Output, Confidence (Source: Bloomberg)
The dollar was set for weekly declines against most major peers before U.S. data that may show production slowed and consumer confidence fell, adding to the case for further monetary stimulus by the Federal Reserve. The euro remained higher versus the greenback following a three-day advance amid speculation traders are trimming bearish bets against the 17-nation currency before Greece holds general elections on June 17. The yen climbed against most counterparts on prospects the Bank of Japan (8301) will refrain from adding to monetary easing when concluding a policy meeting today. “U.S. economic indicators and the European situation have been deteriorating rapidly in recent months,” said Kengo Suzuki, a foreign-exchange strategist in Tokyo at Mizuho Securities Co., a unit of Japan’s third-largest bank by market value. “The market is pressing the Fed to take action. Their accommodative stance is likely to lead to a lower dollar.”
The dollar traded at $1.2628 per euro as of 11:32 a.m. in Tokyo from the close in New York yesterday, when it slid 0.6 percent to $1.2633. It has fallen 0.9 percent this week, set for the biggest drop since April 20. The yen added 0.2 percent to 100.06 per euro and rose 0.1 percent to 79.23 per dollar.

Aussie, Kiwi Set for Weekly Gains Ahead of Fed, G-20 (Source: Bloomberg)
The Australian and New Zealand dollars were poised for weekly gains amid speculation global policy makers will act to counter slower growth and Europe’s debt crisis, spurring risk appetite. Australia’s currency traded above parity with its U.S. counterpart before data that may show the world’s largest economy is struggling to expand, potentially prompting further monetary stimulus from the Federal Reserve. New Zealand’s dollar, known as the kiwi, touched a one-month high before a Group of 20 nations summit in Los Cabos, Mexico on June 18-19, where leaders will discuss Europe’s fiscal woes. “Any talk of coordination of central bank action is music to the ears for risk appetite,” said Michael Turner, a Sydney- based strategist at RBC Capital Markets. “It’s still pretty precarious really, but it’s certainly enough to see the Aussie and the kiwi rally a little bit.”
The Australian dollar bought $1.0017 as of 12:50 p.m. in Sydney from $1.0024 in New York yesterday, when it touched $1.0033, the highest since May 14. The so-called Aussie has gained 1.1 percent this week. New Zealand’s currency reached 78.38, the highest since May 14 before trading at 78.35 U.S. cents, set for a 1.7 percent weekly advance.

FOREX-Euro supported but Italy, Greece risks loom
LONDON, June 14 (Reuters) - The euro steadied against the dollar  but investors were cautious ahead of an Italian bond auction at which borrowing costs are expected to rise and Greek elections on Sunday that could lead to the country's exit from the euro.
"The underlying problem of deteriorating confidence in sovereign debt in Europe is continuing to intensify, although unless there's a material weakening in demand at the Italian auction it's not really going to alter the FX market," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi.

Markets Want Coordinated G-20 Response, IIF Says (Source: Bloomberg)
Investors want global leaders meeting in Mexico next week to take action on reviving economic growth, the Institute of International Finance said. “Markets will be looking expectantly for evidence of a globally coordinated policy response targeted to revive growth prospects worldwide on a sustainable basis,” IIF Managing Director Charles Dallara said in a letter today to leaders attending the Group of 20 summit in Los Cabos, Mexico, on June 18-19. The summit will give European leaders a chance to discuss economic concerns with heads of other major economies, including U.S. President Barack Obama. European governments are more focused on building a consensus for another summit they are holding later this month, a U.S. official said yesterday on condition of anonymity. Europe’s 100 billion-euro ($126 billion) bailout last weekend of Spain’s banks showed “evidence of a willingness to take collective and coordinated action,” Dallara said.
The bailout was a “vital near-term crisis-fighting measure” and highlights the potential benefits of allowing the European Stability Mechanism, or ESM, to recapitalize banks when needed, he said. French President Francois Hollande has called for the ESM to be used to recapitalize banks, the French daily Le Monde reported.

Dark Pool Restrictions Sought in House Committee by NYSE, Nasdaq (Source: Bloomberg)
NYSE Euronext and Nasdaq OMX Group Inc. (NDAQ), the biggest owners of American stock exchanges, are urging U.S. legislators to support changes to rules that caused a proliferation of broker-run markets that draw orders away from public venues. Dark pools and brokers should be required to provide better prices than those available on exchanges or offer quotes publicly at the best levels, the companies said in a written presentation to staff of the House Committee on Financial Services that Bloomberg obtained. Lawmakers are holding hearings on the structure of U.S. markets in Washington on June 20. Dark pools, unlike exchanges, are private venues that execute orders without displaying bids and offers in advance.
The Securities and Exchange Commission should explain why Regulation ATS, approved in 1998 to integrate alternative venues that compete with exchanges listing stocks into the broader marketplace, “remains sound policy,” NYSE Euronext (NYX) and Nasdaq OMX said. That rule and another set of changes the SEC approved in 2005 overhauled trading and led to the creation of more than four dozen venues that compete with the New York Stock Exchange and Nasdaq. Executives at both companies have pushed for changes to how dark pools operate over the last three years.

Fed Gets Room to Ease With Little Growth or Inflation (Source: Bloomberg)
More Americans applied for jobless benefits and consumer prices dropped by the most in three years, giving the Federal Reserve room to spur an economy that’s generating little growth or inflation. Claims for unemployment insurance payments unexpectedly climbed by 6,000 to 386,000 in the week ended June 9, Labor Department figures showed today in Washington. The cost of living fell 0.3 percent in May, led by the biggest decrease in gasoline prices in three years, the agency also reported. Stocks rose as investors increased bets Fed policy makers meeting next week will take additional steps to boost growth and cut an unemployment rate stuck above 8 percent since February 2009. Cheaper energy costs also provide some relief for Americans against a backdrop of moderating job and wage gains that has slowed consumer spending.
“The Fed is really concerned about the outlook for employment and growth,” said Kevin Logan, the chief U.S. economist at HSBC Securities USA Inc. in New York who correctly forecast the decline in prices. “They’ve been pretty sanguine about the inflation outlook, and today’s data certainly didn’t contradict that outlook.”

Fed Growth Forecasts Key to Easing as Job Market Stalls (Source: Bloomberg)
Chairman Ben S. Bernanke told lawmakers last week the “central question” confronting the Federal Reserve at its next meeting is whether growth is fast enough to make “material progress” reducing unemployment. The answer may well be no. Bernanke and his fellow policy makers gather June 19-20 to revise their economic projections after a report yesterday showing retail sales fell for a second month in May prompted economists at Goldman Sachs Group Inc. and Morgan Stanley to cut their growth forecasts. Fed officials, including Vice Chairman Janet Yellen, have said there’s scope for further easing at some point to reduce a jobless rate persisting above 8 percent.
“They’re not closing that employment gap as fast as they’d like, so I suspect it adds up to more action to get things moving again,” said Michael Feroli, chief U.S. economist at New York-based JPMorgan Chase & Co. and a former researcher for the Federal Reserve Board in Washington. “Bernanke has a clear economic mandate, and we’re still far from achieving it.” Economists at Goldman Sachs yesterday reduced their tracking estimate for U.S. second-quarter growth to 1.6 percent from 1.8 percent. Morgan Stanley cut its projection 0.2 percentage point, to 1.8 percent, while Credit Suisse Group AG marked down growth for the period to 2.2 percent from 2.5 percent.

Pimco’s Kashkari Says Fed Likely to Ease Further With QE3 (Source: Bloomberg)
Pacific Investment Management Co.’s Neel Kashkari said the Federal Reserve is likely to start a third round of quantitative easing as BlackRock Inc. (BLK)’s Robert Doll said the central bank will wait to see whether the economy weakens more. “The economy is slowing,” Kashkari, who heads global equities at Newport Beach, California-based Pimco, said today at the Bloomberg Asset Management Summit in Boston. Worsening unemployment, lower equity prices and the risk of shocks coming out of the euro region suggest the Fed will act, he said. U.S. stocks rose today and the dollar weakened as reports on inflation and jobless claims fueled speculation that the Fed will discuss stimulus efforts at its meeting next week. Jobless claims unexpectedly climbed by 6,000 to 386,000 in the week ended June 9, the Labor Department said today. The U.S. economy expanded at a 1.9 percent annual rate in the first quarter, the Commerce Department reported May 31, down from its prior estimate of 2.2 percent.
The Standard & Poor’s 500 Index rose 0.9 percent to 1326.07 at 11:40 am in New York. The dollar weakened against 15 of 16 major peers. Doll, who plans to retire as BlackRock’s chief equity strategist, said regulators would have to see significantly weaker economic growth or a “bust in the euro” before they act to stimulate the economy with another round of bond purchases.

Ex-Soros Adviser Fujimaki Says Japan to Probably Default by 2017 (Source: Bloomberg)
Investors should buy assets in U.S. dollars and other currencies of strong developed nations because Japan may default within five years, said Takeshi Fujimaki, former adviser to billionaire investor George Soros. “Japan is likely to default before Europe does, which could be in the next five years,” the president of Fujimaki Japan, an investment advising company in Tokyo, said in an interview yesterday. Japanese should hold foreign-currency products, such as those denominated in the greenback, Swiss franc, sterling, Australian and Canadian dollars, Fujimaki said. Should the Japanese government default, the yen may weaken to 400-500 per dollar, and the yields on benchmark 10-year bonds could surge above 80 percent, according to Fujimaki. “I’m buying dollars in case of an emergency,” he said.
The yen fell 0.2 percent to 79.48 per dollar as of 9:14 a.m. in Tokyo from its close in New York yesterday. The currency touched the post war high of 75.35 per dollar on Oct. 31 and has averaged about 103 over the past decade. Japan’s 10-year yields were little changed yesterday at 0.86 percent. Rates on June 4 dropped to 0.79 percent, the lowest since June 2003.

O’Neill’s BRICs Risk Hitting Wall Threatening G-20 Growth (Source: Bloomberg)
Even Jim O’Neill is asking whether the BRICs need reinforcing 11 years after he coined the term to describe the world’s future powerhouse economies. O’Neill, chairman of Goldman Sachs Asset Management, says his thesis that Brazil, Russia, India and China would together increasingly buoy the global economy faces “a more challenging test” as investors dump the countries’ stocks. China pared its growth target to the lowest since 2004, Standard & Poor’s may cut India’s investment-grade credit rating, Brazil is on pace to expand less than 3 percent for a second straight year and falling oil prices may hurt Russia.
A prolonged slowdown in the four countries poses a fresh threat to a world economy suffering its weakest spell since the end of the 2009 recession, which the BRICs helped shorten by contributing about half of the international expansion since 2007. Leaders attending next week’s Group of 20 summit in Mexico are already expressing concern, with Brazilian President Dilma Rousseff warning June 4 that emerging markets can’t carry the weight of the world on their shoulders. Rich-nation policy makers “are so wrapped up in their own problems they’re praying some of this weakness is just temporary in the BRICs,” London-based O’Neill, 55, said in a telephone interview. “If it’s not, then it’s pretty worrying.”

India’s Inflation Exceeds Estimates as Rate Decision Looms (Source: Bloomberg)
Indian inflation quickened more than estimated in May as food and fuel prices surged, an acceleration that may fail to prevent an interest-rate cut next week to shore up slowing growth. The benchmark wholesale-price index rose 7.55 percent from a year earlier, after climbing 7.23 percent in April, the commerce ministry said in New Delhi today. The median of 37 estimates in a Bloomberg News survey was 7.5 percent. A separate report showed a decline in Indian exports and imports last month. Indian economic expansion weakened to a near-decade low last quarter, hurt by faltering efforts to open up the economy, a moderation in investment and the impact of Europe’s debt crisis on overseas sales. The slowdown has added pressure on the Reserve Bank of India to reduce borrowing costs at its June 18 policy meeting, even as the nation struggles with the fastest inflation among the biggest emerging markets.
“The growth slowdown and core inflation below 5 percent are giving the central bank room to cut rates,” said Meghna Patel, a fixed-income analyst at Emkay Global Financial Services Ltd. in Mumbai. “But it’s not a monetary policy battle alone, the government has to do its bit on faster reforms to prop up the economy.”

Bank Warns of Major Canada Shock If Europe Crisis Worsens (Source: Bloomberg)
Canada faces a “major shock” to its financial system and economy if Europe’s crisis worsens, the country’s central bank said. While Canada’s financial system has fared well and conditions in the country remain “very stimulative,” deepening turmoil in Europe may boost funding costs for the nation’s banks and generate losses from assets linked to the euro zone, the Bank of Canada said today in its semi-annual Financial System Review. Non-performing loans at Canadian banks would also increase if growth slows. “The combined effect of these events could constitute a major shock for both the Canadian financial system and the economy as a whole,” the Ottawa-based bank said, adding sovereign debt strains in the euro region are the “principal” threat to the country’s financial stability. “Should the crisis worsen and spread further across Europe, the impact on the Canadian financial system could be significant.”
The Canadian central bank, which is headed by Financial Stability Board Chairman Mark Carney, said that banks in the 17- nation euro zone need to be recapitalized with European assets, and that “firewalls” need to be strengthened and brought into force. Recent steps by European governments and central banks “can only create time” and need to be matched by efforts to create a more “robust foundation” for the region’s financial market, such as a banking union, the bank said in the report.

King Says Stimulus Case Grows With Stepped Up Crisis Plan (Source: Bloomberg)
Bank of England Governor Mervyn King unveiled measures to fight an escalation of Europe’s debt crisis as global policy makers prepare for the impact of Greek elections in two days. Warning of a “black cloud” from the euro region, King said in a speech in London late yesterday that the case for more stimulus in the U.K. "is growing." In addition to looser policy, he said the BOE will activate a sterling liquidity facility to aid banks, and plans to have a form of credit easing operating within weeks to boost lending in the economy. King’s measures highlight the alarm of global central bankers over the dangers posed by the mounting euro-area debt crisis after Spain became the fourth member of the region to seek a bailout last week. Greece is due to hold elections on June 17 that may determine its future in the currency zone, and leaders of the Group of 20 nations will hold a summit in Mexico the following day.
Investors want global leaders to take action on reviving economic growth, Institute of International Finance Managing Director Charles Dallara said in a letter yesterday to leaders attending the G-20 summit. He said markets “will be looking expectantly for evidence of a globally coordinated policy response targeted to revive growth prospects.”

Osborne Vows Joint Steps With Central Bank to Spur U.K. Credit (Source: Bloomberg)
Chancellor of the Exchequer George Osborne and Bank of England Governor Mervyn King are preparing two programs to increase the flow of credit amid a deteriorating outlook in the euro area. The U.K. central bank will activate an unused plan to inject at least 5 billion pounds ($7.8 billion) a month into the financial system. Another plan will allow lenders to swap assets with the central bank in return for money to be lent to companies and households. The Treasury will indemnify the bank for any losses. “We are not powerless in the face of the euro-zone debt storm,” Osborne told financiers in his annual Mansion House speech in London today. “The government -- with the help of the Bank of England -- will not stand on the sidelines and do nothing as the storm gathers.”
The plans mark a departure for the central bank, which has so far resisted calls for targeted measures to boost lending to the non-financial sector. Deputy Governor Paul Tucker, a contender to become governor when King’s term ends next year, signaled this week that the bank had eased its stance. The liquidity plan seeks to help banks alleviate the strains resulting from the crisis in the euro area. Originally established in December, the program has never been used. The bank will announce details of its operation tomorrow.

Irish Tell Spain to Imagine the Worst in Banking Bailout (Source: Bloomberg)
Ireland has this banking advice for Spain: imagine the worst and double it. Like Ireland, Spain sought a bank bailout after being felled by a real-estate crash. Now, just as the Irish did, the Spanish are awaiting the results of outside stress tests gauging the size of the hole in the banking system. “Think of the worst possible scenario on banking losses: then double it,” said Eoin Fahy, an economist at Kleinwort Benson Investors in Dublin. “Adopt the most conservative assumptions.” Nine hundred miles northwest of Madrid, Irish analysts wring three lessons from its own banking crisis, among the worst in history. First, quickly present an accurate estimate of the bad loans. Second, force banks to face up to losses, possibly through the creation of a so-called bad bank. Third, share as much of the loss as possible with bank bondholders.
“Spain should face the economic reality, even if they have to value property loans at discounts of 40, 60 or even 80 percent,” said Alan Ahearne, former economic adviser to Brian Lenihan, the finance minister who presided over Ireland’s response to the near-collapse of its financial system. “If the real losses aren’t faced up to, who’s that going to fool?” Spain’s government already ordered banks to set aside provisions equivalent to 45 percent on the nation’s 307 billion- euro ($387 billion) book of loans linked to real-estate developers, Economy Minister Luis de Guindos said May 11.

Draghi Fails to Find Clarity in ECB Communication (Source: Bloomberg)
European Central Bank President Mario Draghi is struggling to find the right balance between saying too much and nothing at all. Draghi won praise for his candor when he took the helm of the ECB seven months ago. Since then, he has kept investors guessing on three key Greek initiatives and confused some of them on the outlook for ECB bond purchases, whipsawing the euro and Italian and Spanish bonds. Economists from Nomura International Plc to ING Group NV say Draghi’s communication is exacerbating market turmoil. “Since the first press conference when Draghi came in with a very confident style, it has basically been downhill on the communication front,” said Nick Kounis, head of macro research at ABN Amro in Amsterdam. “Clearly the communication has sometimes created the wrong impression, and that makes markets that bit more volatile.”
Draghi took the reins of the world’s second-most important central bank in the middle of its biggest crisis, with the future of Europe’s common currency at stake. As concerns about the creditworthiness of euro-area nations drive up borrowing costs and force the ECB ever further into uncharted territory, Draghi must balance the need for transparency against the risk of spooking financial markets.

Central Banks Warn Greek-Led Euro Stress Threatens World (Source: Bloomberg)
Central banks intensified warnings that Europe’s failure to tame its debt crisis threatens to roil the world’s financial markets and economy as Greece’s election in two days looms as the next flashpoint for investors. Monetary policy makers from the U.K. to Japan and Canada sounded the alert about potential fallout from the single currency bloc’s troubles. They spoke as Group of 20 leaders prepare to meet in Mexico next week amid the weakest international economy since the 2009 recession. A victory by Syriza, the party that promises to renege on Greece’s end of the bailout deal, could speed the nation’s exit from the euro. Absent a quick fix from divided European governments, central bankers may have to engage in fresh crisis- fighting of their own to ensure markets operate and their economies grow if the election jolts investors. Spain’s 10-year bond yield vaulted above 7 percent yesterday in a fresh sign of the stress that has plagued the region for two years.
The crisis has created a “large black cloud of uncertainty hanging over not only the euro area, but our economy too, and indeed the world economy,” Bank of England Governor Mervyn King said in London late yesterday.

Draghi Fails to Find Clarity in ECB Communication (Source: Bloomberg)
European Central Bank President Mario Draghi is struggling to find the right balance between saying too much and nothing at all. Draghi won praise for his candor when he took the helm of the ECB seven months ago. Since then, he has kept investors guessing on three key Greek initiatives and confused some of them on the outlook for ECB bond purchases, whipsawing the euro and Italian and Spanish bonds. Economists from Nomura International Plc to ING Group NV say Draghi’s communication is exacerbating market turmoil. “Since the first press conference when Draghi came in with a very confident style, it has basically been downhill on the communication front,” said Nick Kounis, head of macro research at ABN Amro in Amsterdam. “Clearly the communication has sometimes created the wrong impression, and that makes markets that bit more volatile.”
Draghi took the reins of the world’s second-most important central bank in the middle of its biggest crisis, with the future of Europe’s common currency at stake. As concerns about the creditworthiness of euro-area nations drive up borrowing costs and force the ECB ever further into uncharted territory, Draghi must balance the need for transparency against the risk of spooking financial markets.

Greek Stocks Rally on Optimism New Democracy Will Win (Source: Bloomberg)
Greek stocks rallied the most in more than nine months, while a gauge of banks jumped 21 percent, amid speculation that New Democracy, the party that backs an agreed bailout for the nation, may win the June 17 elections. The Athens Stock Exchange Index (ASE) climbed 10 percent to 550.1 at the close, the biggest jump since Aug. 29, as economists at EFG Eurobank Ergasias SA (EUROB) said Greece is on course to meet its budget-deficit target for 2012. The gauge pared this year’s decline to 19 percent. The FTSE/Athex Banks Index (ASEDTR) soared 23 percent to 224.21 today. Greeks will vote for a second time in six weeks, after a May 6 ballot failed to result in a government. New Democracy, the largest pro-bailout party, led Syriza, the group opposed to spending cuts, according to the last poll on June 1. Under Greek law, there is a ban on publication of opinion polls two weeks before an election.
“The fact that a vast majority, around 75 percent of Greeks according to polls, prefer to keep the euro, suggests that many of them may think twice before they enter the polling booth,” a team of UBS AG economists led by Martin Lueck in Frankfurt wrote in a report today. “From this angle, even a comfortable Syriza lead in the polls does not necessarily mean that this will be reflected in the election result.”

GLOBAL MARKETS-Spain's debt hits record as euro zone crisis worsens
LONDON, June 14 (Reuters) - Spain's 10-year bond yields hit a euro-era record of 7 percent on Wednesday as investors fled to safe-haven assets on fears the storm surrounding Europe's two-year long debt crisis was worsening, sending European shares and the euro lower.
"The underlying problem of deteriorating confidence in sovereign debt in Europe is continuing to intensify," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi.

20120615 1137 Soy Oil & Palm Oil Related News.

ITS CPO export up 20% to 716,322 tonnes for the period of 1~15 Jun 2012.
SGS CPO export up 28%% to 722,455 tonnes for the period of 1~15 Jun 2012.

Soybeans Extend Losses (Source: CME)
The soybean market tried to rally but changed direction and closed sharply lower. Corn and wheat were able to hold to the plus side with July corn continuing to lead the way. By John Sanow DTN Analyst

Pro Farmer: After the Bell Soybean Recap (Source: CME)
The July and August soybean contracts closed 14 and 22 1/4 cents lower, respectively, while deferred months posted losses of 8 to 11 1/4 cents. Aside from the front-month July contract, futures extended losses in after-hours trade. Soybean futures weakened in the midst of bullish fundamental news today as speculators liquidated long positions.

Soybean Complex Market Recap (Source: CME)
July Soybeans finished down 21 at 1387 1/4, 28 1/2 off the high and 3 1/4 up from the low. November Soybeans closed down 11 3/4 at 1308. This was 5 3/4 up from the low and 16 3/4 off the high. July Soymeal closed down 4.1 at 417.9. This was 2.3 up from the low and 8.0 off the high. July Soybean Oil finished down 1.04 at 48.06, 1.23 off the high and 0.08 up from the low. July soybeans were trading near 21 cents lower on the day late in the session with significant weakness and new lows posted late in the day. A strong recovery in outside market forces plus a surge higher in corn and wheat helped to support the market bounce well off of the overnight lows. However, even very strong short-term demand news failed to support follow-through buying and the market experienced a steady flow of fund trader selling for much of the day. Higher than expected weekly export sales news and higher than expected monthly crush news failed to provide much support after a minor bounce. The NOPA crush for May came in at 138.3 million bushels which is up about 3 million from trade expectations. In addition, weekly export sales came in at 425,100 tonnes for the current marketing year and 580,000 for the next marketing year for a total of 1.005 million tonnes which was about twice expectations. Cumulative old crop sales stand at 101.3% of the USDA forecast for the marketing year versus a 5 year average of 98.9% for this time of the year. Meal sales came in at 116,800 metric tonnes for the current marketing year and 24,500 for the next marketing year for a total of 141,300. Sales of 83,000 metric tonnes are needed each week to reach the USDA forecast. Net oil sales came in at 6,800 metric tonnes for the current marketing year and 500 for the next marketing year for a total of 7,300. Continued talk of fund trader liquidation of July bean/July corn spreads added to the bearish tone today.

VEGOILS-Palm oil hits new 2012 low on global economic woes
SINGAPORE, June 14 (Reuters) - Malaysian palm oil futures slumped to the lowest in 2012 as the euro zone debt crisis and sluggish U.S. growth triggered a flight of capital from riskier assets.
"On the weekend ahead we are going to see the Greek election and market participants are staying away from the market for the time being," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.

India's May vegoil imports fell 3.1 pct m/m -trade
NEW DELHI, June 14 (Reuters) - India's vegetable oil imports in May fell 3.1 percent to 896,921 tonnes as soyoil purchases declined, a leading trade body said on Thursday, while there was a jump of 70 percent in refined palm oil imports as worries over a duty hike dissipated.
The monthly imports were slightly higher than the average forecast in a Reuters survey.

Argentine soy crushing down 6.5 percent in April
BUENOS AIRES, June 13 (Reuters) - Argentina crushed 3.5 million tonnes of soybeans in April, down 6.5 percent from a year ago and marking the second straight month of decline, the Agriculture Ministry said in its latest crushing report.
The South American country is the world's top exporter of soyoil and soymeal, as well at its No. 3 supplier of soybeans. This season's yields have suffered from a six-week drought that parched the Pampas grains belt in December and January.

20120615 1137 Global Commodities Related News.

Pro Farmer: After the Bell Wheat Recap (Source: CME)
Chicago wheat ended with gains of 3 1/2 to 7 1/2 cents. Kansas City ended 2 1/4 to 5 3/4 cents higher. July Minneapolis wheat was the upside leader, closing 17 3/4 cents higher, while deferred months saw gains of 3 to 8 1/4 cents. Futures trimmed gains slightly in after-hours trade. Futures benefited from spillover from corn, stronger-than-expected weekly export sales of 432,900 metric tons (MT) for 2012-13 and a daily sale to China for 110,000 MT of SRW wheat.

Wheat Market Recap Report (Source: CME)
July Wheat finished up 6 1/2 at 622 1/2, 6 1/2 off the high and 7 1/2 up from the low. December Wheat closed up 6 at 665 1/2. This was 6 3/4 up from the low and 4 3/4 off the high. July wheat closed moderately higher on the session but down off of the early highs. Firm export demand and continued talk of tightening world supply for the coming season compared with the past few years helped to support. In addition, improved demand news and China import demand helped to support. Private exporters reported a sale of 110,000 tonnes of US soft red winter wheat which was the highest to China in 8 1/2 years. Net weekly export sales for wheat came in at 432,900 metric tonnes which was about as expected. As of June 7th, cumulative wheat sales stand at 17.7% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 18.1%. Sales of 502,000 metric tonnes are needed each week to reach the USDA forecast. The European Union granted export licenses for 117,000 tonnes of wheat this week which pushed cumulative sales for the marketing year to 12.3 million tonnes as compared with 18 million last year at this time. European milling wheat futures closed slightly higher and uncertainty for euro zone debt issues remains a source of uncertainty for commodity traders. July Oats closed down 1/4 at 305 1/2. This was 1 1/2 up from the low and 7 1/4 off the high.

Pro Farmer: After the Bell Corn Recap (Source: CME)
Corn futures ended with gains of 4 1/4 to 9 cents through the September 2013 contract, with front-month July leading gains. Futures were little changed in after-hours trade. Support for corn futures was largely twofold today: 1) Strong basis levels sparked rumors China was buying corn, and 2) the forecast is looking less favorable than it initially did for widespread rains for the Midwest over the near-term.

Corn Market Recap for 6/14/2012 (Source: CME)
July Corn finished up 8 1/4 at 600 3/4, 7 3/4 off the high and 9 up from the low. December Corn closed up 6 1/2 at 517. This was 7 3/4 up from the low and 4 1/4 off the high. July corn was trading about 8 1/2 cents higher on the session late in the day which was well off of the mid-session highs while December was up near 6 1/2 cents late. Ideas that the rain into next week will benefit the western Corn Belt but areas in the east which receive 1/2 inch or less may not be enough to alleviate threatening crop conditions into the pollination period helped to support. Ideas that the weakness yesterday was overdone and some short-covering due to very strong domestic cash markets added to the positive tone. Weekly export sales came in well below trade expectations at just 92,100 metric tonnes for the current marketing year and 77,700 for the next marketing year for a total of 169,800. As of June 7th, cumulative corn sales stand at 92.0% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 91.6%. Sales of 273,000 metric tonnes are needed each week to reach the USDA forecast. Traders continue to see uncertainty over euro zone debt issues and this was seen as a limiting factor on the upside. July Rice finished up 0.075 at 13.97, equal to the high and 0.08 up from the low.

Soy at 1-week low on risk aversion, corn up for 2nd day
SINGAPORE, June 14 (Reuters) - Chicago soybeans slid around half a percent, falling to a one-week low as concerns over global rowth weighed on the market, while spot-month corn rose for a second straight session on tight old-crop supplies.
"What we are seeing is that macro factors are driving the market right now," said Abah Ofon, an analyst at Standard Chartered Bank in Singapore. "The crisis in Europe and concerns over global growth are clouding the outlook, forcing people to come out of risky assets."

Algeria sees 2012 grain harvest exceeding 5.8 mln t
ALGIERS, June 14 (Reuters) - Algeria expects its grain harvest for this year to reach 5.8 million tonnes or even exceed that level due to better weather conditions and incentives for farmers, its agriculture minister said on Thursday.
"We will reach around 58 million quintals (5.8 million tonnes). The figure may exceed 58 million quintals if there are no problems including fire usually caused by high temperatures," the minister, Rachid Benaissa, told state radio.
Rains aid China's corn, may limit yield losses
BEIJING, June 14 (Reuters) - Heavy rains have improved growing conditions in China's top corn producing provinces, which could limit the damage inflicted by a prolonged period of dryness with forecasts of more crop-friendly weather in the coming days.
A higher-than-expected corn output in China, the world's second largest consumer and producer of the grain, may cap its imports and weigh on the U.S. new-crop December corn  - which has already been hit by forecasts for more rains in the Midwest and is on track to record its steepest weekly fall in seven months.
Thai exporter turns to Cambodia for cheaper rice
BANGKOK, June 14 (Reuters) - Asia Golden Rice Co.Ltd, Thailand's second-biggest rice exporter, is investing in neighbouring Cambodia to secure cheaper rice as costs rise at home and is confident of finding a market in the European Union, the company's president said on Thursday.
"We see an opportunity to develop milling technology to produce quality milled rice varieties and export from there," Sombat Chalermwutinan told Reuters in an interview.

Strategie Grains lifts EU wheat view on good weather
PARIS, June 14 (Reuters) - Analyst Strategie Grains on Thursday raised its forecast for this year's soft wheat harvest in the European Union after favourable growing weather in the past month.
The analyst had slashed its EU wheat crop outlook by 8.5 million tonnes over the previous two months as it factored in damage from frost and dryness, but it now said rain across much of Europe in May had improved crop conditions.
Cooperatives cut German 2012 wheat crop forecast
HAMBURG, June 13 (Reuters) - The German Farm Cooperatives Association said on Wednesday it has cut its forecast of the country's 2012 wheat harvest, as damage from the cold winter was worse than thought and dryness threatens part of the German crop.
It now expects a 2012 wheat crop of 21.3 million tonnes compared with the 22 million tonnes estimated in May. This will be 6.2 percent down on the weather-reduced 22.7 million tonnes of wheat Germany harvested in 2011.
FranceAgriMer ups wheat stocks, cuts exports again
PARIS, June 13 (Reuters) - Farm office FranceAgriMer on Wednesday raised its forecast of French soft wheat stocks at the end of this season for the second straight month as it lowered again its outlook for exports, data released on the office's website showed.  
The office increased its forecast of soft wheat stocks at the end of the 2011/12 season on June 30 to 2.51 million tonnes against 2.36 million seen last month, although this was still    down 14 percent on ending stocks in 2010/11.

ICE coffee hits two-year low, sugar slips
LONDON, June 14 (Reuters) - Arabica coffee futures on ICE touched a two-year low in early trade, as Brazil selling weighed, with the harvest in the top producer underway.
Raw sugar and cocoa futures on ICE also eased, as European markets dipped after Spain's credit rating was cut to one notch above "junk", and nervousness grew ahead of a Greek election on the weekend.
Coffee output from Vietnam's current 2011/2012 crop would reach 20 million bags, up 2.7 percent from the previous season, the International Coffee Organization said, raising its estimate by around 9 percent from 18.3 million bags previously.

Vietnam 2011/2012 coffee output, exports seen up
HANOI, June 14 (Reuters) - Coffee output from Vietnam's current 2011/2012 crop would reach  20 million bags, up 2.7 percent from the previous season, the International Coffee Organization said, raising its estimate by around 9 percent from 18.3 million bags previously.
Following the revision for Vietnam, the world's second-largest producer after Brazil, the world production estimate in the current crop year was also lifted to 131.9 million 60-kg bags, from 131.4 million bags, the London-based ICO said in its May report.

Brazil mid crop cocoa deliveries speed up
BRASILIA, June 13 (Reuters) - Deliveries of cocoa from Brazil's main producing regions quickened again in the last week with the May-September mid crop now at peak flow, data from Bahia Commercial Association showed, while the return of rain boded well for the next crop.
The main cocoa-growing state of Bahia churned out 97,693 60-kg bags in the last week, up from 93,267 bags in the week prior. Smaller producing states saw a similar increase to 47,371 bags, up from 42,970 bags.

Cotton Futures Jump on ’Monster’ Export Sales From U.S. (Source: Bloomberg)
Cotton futures rose to a two-week high as exports soared fivefold from the U.S., the world’s biggest shipper. Orange-juice prices fell to a three-week low. Net sales of upland cotton jumped to 1.02 million running bales in the week ended June 7 from 199,233 a week earlier, the U.S. Department of Agriculture said in a report. A running bale weighs 500 pounds, or 227 kilograms. “We’re up because of the absolutely monster sales that were reported,” Mike Stevens, an independent trader in Mandeville, Louisiana, said in a telephone interview. “This shows a tremendous amount of business.” Cotton for December delivery rose 0.3 percent to settle at 70.6 cents a pound at 2:51 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 73.08 cents, the highest for a most- active contract since May 30.
Orange-juice futures for July delivery fell 0.8 percent to $1.0975 a pound in New York. Earlier, the price touched $1.071, the lowest since May 24. The commodity has dropped tumbled 52 percent from a record $2.2695 on Jan. 23. A “double whammy between weak demand and ample supplies” drove prices lower, Fain Shaffer, the president of Infinity Trading in Medford, Oregon, said in a telephone interview.

Coffee Price Drop Endangers Recovery of Colombian 2013 Crop (Source: Bloomberg)
Colombia, the second-largest supplier of Arabica coffee beans, said a slump in prices is putting at risk next year’s recovery in its harvest. A prolonged drop poses a “serious danger” because some farmers are losing money at current prices, Mario Gomez, a member of the board of Colombia’s National Federation of Coffee Growers for about three decades, said in a telephone interview from the city of Manizales in the nation’s central coffee- farming region. “That’s the death of coffee production,” Gomez said. “Losses lead to crops being neglected and then abandoned.” Coffee has declined 16 percent in a month on speculation supplies will increase from Brazil, the top producer of Arabica coffee favored by brewers such as Starbucks Corp. (SBUX) The Colombian federation’s Chief Executive Officer Luis Munoz forecast last month that 2013 output may rebound to a five-year high of 9 million bags as disease-resistant crops aid production.
Arabica-coffee futures for September delivery, slid 2 percent to close at $1.5105 a pound on ICE Futures U.S. in New York. The crop this year, which is being harvested, will be similar to 2011, Munoz said in May. Last year, the nation’s production of 7.81 million bags slid to a 35-year low after above-average rainfall damaged crops. Each bag weighs 60 kilograms (132 pounds).

Oil Gains a Second Day on Stimulus Speculation, OPEC Output Call (Source: Bloomberg)
Oil rose for a second day in New York on speculation that the Federal Reserve may take more steps to stimulate the economy and on OPEC’s call on members to cut production in excess of quotas. Futures advanced as much as 0.7 percent, heading for a second week of gains. Reports showing U.S. jobless claims unexpectedly climbed and the cost of living fell by the most in more than three years fueled speculation that Fed policy makers will discuss stimulus measures when they meet June 19. The Organization of Petroleum Exporting Countries would need to reduce output by 1.6 million barrels a day to comply with its targeted ceiling, Secretary-General Abdalla El-Badri said.
“There are more supportive factors now for oil than there are negative,” Jonathan Barratt, chief executive officer of Barratt’s Bulletin, a commodity-markets newsletter in Sydney, said in a telephone interview. “The whole purpose of the cartel is to provide guidelines to production. Compliance is just a word. If the price slips below $80 a barrel then quotas will change and give prices a big bump.” Oil for July delivery advanced as much as 58 cents to $84.49 a barrel in electronic trading on the New York Mercantile Exchange, and was at $84.25 at 11:19 a.m. Sydney time. The contract increased 1.6 percent yesterday to $83.91, the highest close since June 8. Prices are 0.1 percent higher this week and down 15 percent this year. Brent oil for August settlement rose 57 cents, or 0.6 percent, to $97.74 a barrel on the London-based ICE Futures Europe exchange. The front-month price for the European benchmark contract was at a premium to West Texas Intermediate of $13.15, up from $13.12 yesterday.

OPEC Decision Puts Onus on Saudi Arabian Cuts Should Prices Fall (Source: Bloomberg)
OPEC’s decision to keep its output quota unchanged yesterday puts the onus on the group’s biggest producer, Saudi Arabia, to cut supply should crude prices extend their drop below $100 a barrel. The Organization of Petroleum Exporting Countries would need to reduce output by 1.6 million barrels a day to comply with its targeted ceiling of 30 million barrel a day, OPEC Secretary-General Abdalla El-Badri said yesterday. Increased production from Saudi Arabia has been blamed for plunging prices by members including Iran, whose own exports are likely to be curbed by a European Union embargo starting July 1.
“It puts some of the onus on the Saudis, but at the end of the day, they’re going to remain very responsive to what happens in the world market,” Jason Schenker, president of Prestige Economics LLC, a commodity researcher in Austin, Texas, said in an interview in Vienna yesterday. Iranian supply will “come off the market with the full implementation of the embargo and that could push the number down toward 30 million,” he said Saudi Arabia has led the surge in OPEC’s output above its official limit this year, as Brent crude prices rose in March to their highest since July 2008 on concern sanctions against Iran will disrupt Middle East supply. Since then, signs that Europe’s debt crisis will erode fuel demand have driven the price back below $100, a level favored by Saudi Arabian Oil Minister Ali al-Naimi.

OPEC's new ground rule? Don't mention Iran
(Robert Campbell is a Reuters market analyst. The views expressed are his own)
VIENNA, June 13 (Reuters) - It is no exaggeration to say the impact of the pending U.S. and European sanctions against Iran are one of the most taboo subjects at an OPEC meeting in years.
A visitor from Mars could well walk away from the day to day events in Vienna under the impression that the impending U.S. and European sanctions regimes has nothing to do with Iranian oil exports.

OIL-Oil steady ahead of OPEC meeting, Greek polls
LONDON, June 14 (Reuters) - Oil prices held just under $97, with investors and traders reluctant to add to positions ahead of a meeting  of oil producer group OPEC and Greek elections at the weekend.
"No one is expecting any fireworks," agreed Hansen. "Any disagreements tend to be kept behind closed doors and it will probably result in an unchanged ceiling this afternoon."    

Oil steady ahead of OPEC meeting, Greek polls
LONDON, June 14 (Reuters) - Oil prices held just under $97, with investors and traders reluctant to add to positions ahead of a meeting on Thursday of oil producer group OPEC and Greek elections at the weekend.
Traders are looking for any change in OPEC's output policy given that some view the market as over-supplied, while the Greek election result should deliver some clarity as to whether Greece will stay in the euro.  

Saudi under OPEC pressure to prevent oil collapse
VIENNA, June 13 (Reuters) - Saudi Arabia came under pressure on Wednesday from fellow OPEC producers to cut oil output to prevent a further slide in crude prices.  
Price hawks in the Organization of the Petroleum Exporting Countries are fretting that slowing economic growth will send crude, already off $30 since March, plummeting further.  

Sliding oil price rebalances Middle East economy
DUBAI, June 13 (Reuters) - Ziad Makhzoumi, chief financial officer of Arabtec , the United Arab Emirates' biggest construction firm by stock market value, thinks the region's economy will probably ride out weak oil prices comfortably. But he sees a risk.
If oil drops below the price at which energy-exporting countries in the Gulf can balance their state budgets - a scenario which he thinks unlikely - infrastructure and other building projects will slow down or in some cases halt.

Gold Traders Bullish as Hedge Funds Increase Wagers (Source: Bloomberg)
Gold traders are bullish for a fourth consecutive week after hedge funds added to bets that prices will rally, exchange-traded products backed by the metal expanded and Europe’s debt crisis roiled markets. Twenty-four analysts surveyed by Bloomberg said they expect gold to gain next week and six were bearish. A further three were neutral. Speculators boosted net-long positions by 27 percent in the week ended June 5, the latest Commodity Futures Trading Commission data show. ETP holdings rose 18 metric tons valued at $938 million since the start of June, halting a three- month retreat, according to data compiled by Bloomberg. Greek voters return to the polls June 17 after last month’s elections failed to produce a government, increasing concern the 17-nation euro would fracture. Almost $5.7 trillion was wiped off the value of global equities since the end of March on signs of slowing growth, spurring speculation that policymakers will do more to shore up economies.
Gold rose about 70 percent as the Federal Reserve bought $2.3 trillion of debt in two rounds of quantitative easing, or QE, ending in June 2011. “Whatever the outcome in Europe, it will likely be supportive for gold,” said Neil Gregson, who manages about $6.9 billion of natural-resources equities at JPMorgan Asset Management in London. “We’ve still got the possibility of QE3 in the U.S., which would be good for gold.”