Friday, January 4, 2013

20130104 1117 Global Markets & Energy Related News.

GLOBAL MARKETS-Asian shares drop on Fed minutes, dollar extends gain
TOKYO, Jan 4 (Reuters) - Asian shares fell, tracking overnight weakness in global equities, but the dollar gained as U.S. debt yields rose after several Federal Reserve officials expressed concerns about  continuing to expand stimulative bond buying.
"The minutes have added a fresh degree of uncertainty into the investment climate, which is likely to mean a steeper yield curve. But equity investors should take heart from the fact that the Fed's perception is qualified on an improving economy,"    Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York, said in a note to clients.

FOREX-Yen drops vs dollar; U.S. jobs data awaited
TOKYO, Jan 4 (Reuters) - The dollar rose to its highest level against the yen in nearly 2 1/2 years, while the euro also firmed against the yen on expectations that this year will bring more monetary stimulus by the Bank of Japan.
"The yen's negatives are increasingly prominent - economic deterioration, external weakness, geo-political conflict with major trading partners, physical and human capital outflow, and increasing pressure on the BOJ," Steven Englander, head of global G10 currency strategy for Citigroup, said in a research note.

 Fed sticking to asset buys despite growing internal doubts
WASHINGTON, Jan 3 (Reuters) - The Federal Reserve looks set to continue buying bonds to stimulate economic growth over coming months despite rising concern about the risks of the policy inside the central bank.
Minutes from the Fed's December meeting showed a growing reticence about further increases in the central bank's $2.9 trillion balance sheet, which it expanded sharply in response to the financial crisis and recession of 2007-2009.

US crude stockpiles plunged by 12 mln barrels last week-API
NEW YORK, Jan 3 (Reuters) - U.S. crude oil inventories fell sharply last week and imports tumbled, data from the American Petroleum Institute showed on Thursday, as Gulf Coast refiners drew down stocks for end of the year tax purposes.
Crude stockpiles across the world's top oil consumer dropped by 12 rels in the week to Dec. 28, well over expectations for a 900,000 barrel draw, according to the data. The declines came as crude oil imports fell by 845,000 barrels per day, to 7.43 million bpd for the week. The East Coast showed a smaller 2 million barrel decline in crude stockpiles.

OIL-Brent crude slips as profit taking, Fed minutes weigh.
NEW YORK, Jan 3 (Reuters) - Oil slipped after prices hit 11-week highs, on worries about looming U.S. budget battles and signs of growing concern by the U.S. Federal Reserve about buying bonds to spur economic growth.
"The uncertainty because of the budget cuts and the ceiling debate s eems to have tempered the m arkets' e nthusiasm that things were getting better and that's why things have stalled," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

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