Tuesday, October 2, 2012
STOCKS: Asian shares rose after a surprising expansion in U.S. factory activity helped investors override concerns about weak overall global growth, and some market players said riskier assets should continue to find support. European stock index opened lower. Wall Street started a new quarter with a modest rally on Monday, lifted by a surprising expansion in U.S. manufacturing in September.
FOREX: The euro edged higher and held above a three-week low against the dollar, but its outlook was clouded by concerns over Spain's fiscal woes and uncertainty over the timing of a possible aid request by Madrid.
FOREX-Euro claws higher; Aussie falls after RBA rate cut
SINGAPORE, Oct 2 (Reuters) - The euro edged higher and held above a three-week low against the dollar on Tuesday, but its outlook was clouded by concerns over Spain's fiscal woes and uncertainty over the timing of a possible aid request by Madrid.
"If Spain requests proactively, I think the euro would have a lot more upside, perhaps to $1.33," he said.
U.S. manufacturing grows but Europe, Asia wilt
U.S. manufacturing grew slightly last month for the first time since May but euro zone factories suffered their worst quarter since early 2009, suggesting the region may struggle to avoid recession.
Spain ready for bailout, Germany signals "wait"-sources
Spain is ready to request a euro zone bailout for its public finances as early as next weekend but Germany has signalled that it should hold off, European officials said on Monday.
GRAINS: Chicago soybeans slid to a three-month low as the record pace of the U.S. harvest and evidence of better-than-expected yields weighed on the market, while corn ticked higher amid tightening supplies.
U.S. farmers more than halfway done with corn harvest
U.S. farmers notched their best crop-gathering week of a record-fast year as dry weather helped them push past the halfway mark in the corn harvest and cut down 19 percent of their soybean crop, government data released on Monday showed.
POLL-U.S. crude inventories seen up on higher imports
U.S. crude oil inventories are expected to have risen last week as imports increased, a preliminary Reuters poll of analysts showed on Monday.
OIL: Brent crude futures steadied near $112 a barrel as investors weighed a weaker demand outlook amid a sluggish global economy against the continuing potential for supply risks.
COLUMN-Is copper supply cycle starting to turn?
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Oct 1 (Reuters) - Whisper it softly but copper supply may finally be turning some sort of corner.This is a market that has been characterised by supply shortfall for almost as long as anyone can remember.
A chronic lack of investment in new mine capacity coupled with a litany of labour unrest, technical problems and falling grades has helped keep the copper price trading significantly above the cost of production, in stark contrast to just about every other industrial commodity.
METALS-Copper slips after 3 days of gains, U.S. data cushions
SINGAPORE, Oct 2 (Reuters) - London copper eased on Tuesday after gaining for three sessions with holidays in top consumer China this week keeping trade thin, although an unexpected glimmer of expansion from the U.S. manufacturing sector cushioned prices.
"Last month was quite good for base metals but for the wrong reasons -- more free money from the Federal Reserve," said Matt Fusarelli, an analyst at Australia-based consultancy AME Group.
BASE METALS: London copper eased after gaining for three sessions with holidays in top consumer China this week keeping trade thin, although an unexpected glimmer of expansion from the U.S. manufacturing sector cushioned prices.
PRECIOUS METALS: Gold was little changed, crawling back towards an 11-month high hit in the previous session, supported by a slightly weaker dollar and investor hopes for further central bank action to battle the grim outlook for global economic growth.
PRECIOUS-Gold inches up as more cbank action eyed
SINGAPORE, Oct 2 (Reuters) - Gold inched up on Tuesday, crawling back towards an 11-month high hit in the previous session, supported by a slightly weaker dollar and investor hopes for further central bank action to battle the grim outlook for global economic growth.
"We believe that expanding monetary conditions globally will provide the catalyst for higher gold prices over the near-medium term," Deutsche Bank said in a research note.
Posted by MW Chong at 4:29 PM
VEGOILS-Supply outlook drags palm oil to new 2-year low
Prices touch new low at 2,394 ringgit, lowest since July
* Futures down 24 percent so far since start of 2012
* Palm oil to rebound to 2,500 ringgit -technicals
By Chew Yee Kiat
SINGAPORE, Oct 2 (Reuters) - Malaysian palm oil futures slid
further on Tuesday to their lowest in more than two years, as
rising stocks and the record pace of the U.S. soybean harvest
pointed to a growing global supply of vegetable oils.
Lacklustre export numbers for palm oil also contributed to
views that stocks in No.2 producer Malaysia could climb higher
in September after hitting a 10-month high in August.
Traders took cues from Chicago soybeans that fell to a
three-month low on Tuesday on U.S. harvest pressure, weighing on
palm oil prices that have lost almost a quarter since the start
of this year.
"The market has no bullish news to at least even have a
rebound. Technicals have been pointing to the fact that 2,000
ringgit can be easily reached," said a Singapore-based trader
with a global commodities house.
By the midday break, the benchmark December contract
on the Bursa Malaysia Derivatives Exchange had fallen
2.6 percent to 2,400 ringgit ($787) per tonne. Prices earlier
touched a low at 2,394 ringgit -- the lowest since July 2010.
Total traded volumes on Monday were at 15,026 lots of 25
tonnes each, higher than the usual 12,500 lots.
Reuters market analyst Wang Tao said technicals showed palm
oil would rebound to 2,500 ringgit per tonne, as its fall may
temporarily stop around a support at 2,407 ringgit, and added
that the rebound would little affect the current downtrend.
Palm oil exports in September were weaker than expected,
slipping 0.7 percent from the previous month, according to cargo
surveyor Intertek Testing Services.
Another cargo surveyor, Societe Generale de Surveillance,
reported a slight 0.5 percent increase, bolstered by higher
shipments of crude products.
Brent crude futures steadied near $112 a barrel on Tuesday
as investors weighed a weaker demand outlook amid a sluggish
global economy against the continuing potential for supply
In other vegetable oils markets, U.S. soyoil for December
delivery eased 0.4 percent in Asian trade. The Dalian
Commodity Exchange remains closed for the Golden Week holiday in
China and will resume trading on Oct. 8.
Posted by MW Chong at 4:25 PM