20101130 0926 Global Market News.

Oil retraces after jump, holds above $85
SINGAPORE, Nov 30 (Reuters) - Oil slipped,  retracing part of the sharp gains seen in the previous  session, while traders awaited further evidence that  inventories were draining amid hopes of a surge in demand for  heating in sight.    
"Investors are in a wait-and-see attitude, holding for  some positive news to boost prices further," said Serene Lim,  a Singapore-based oil analyst at ANZ. 

Malaysia govt rolls out tax incentives for oil and gas development
KUALA LUMPUR, Nov 30 (Reuters) - Malaysia government on  Tuesday announced new tax incentives to develop the country's  oil and gas reosurces, which will be implemented by state oil  firm Petronas.
Petronas manages the Southeast Asian country's oil and gas resources. 

Wheat up for 4th day on weather concerns;corn, soy steady
SINGAPORE, Nov 30 (Reuters) - Chicago wheat futures  bounced half a percent, rising for a fourth  straight session as adverse weather across the U.S. winter  crop areas and excessive rains in Australia continued to  support the market.
"The headline story for wheat has certainly been in  excessive rains in Australia, also they are also talking about  cold weather and not too much rain for hard red belt in the  U.S.," said Brett Cooper, a senior manager of markets at  FCStone Australia. 

Gold steady; Europe, Koreas cloud market outlook
SINGAPORE, Nov 30 (Reuters) - Spot gold was steady aided by physical buying, while investors continued  to watch the progress in euro zone's debt problem and tensions  in the Korean peninsula for trading cues. 
"We are in a period during which the market really doesn&#8217t know which direction things are heading. The European situation is still very uncertain. We had supposedly the solution of the Irish situation, but it didn't seem to please  the markets too much," said Darren Heathcote, head of trading  at Investec Australia. 

OIL: Crude steady after jump on cold weather
SINGAPORE, Nov 30 (Reuters) - Oil was steady near $86 on Tuesday after rising more than 2 percent a day earlier, led by futures of heating fuels including gas oil, as cold weather gripped northern Europe, raising expectations of higher consumption.
A Reuters oil poll showed most analysts revising price estimates higher, while a Reuters survey of OPEC showed  slightly better compliance with production target limits.

COMMODITY MARKETS: Oil surges above $85, wheat higher on weather
CHICAGO, Nov 29 (Reuters) - Oil surged over 2 percent to a two-week high above $85 on Monday, while gold rose $6 an ounce but grains were mixed in subdued trade as commodities looked past the rising dollar to refocus on market-specific fundamentals.
"There is a holiday trading pattern that is starting to develop. I think a lot of people will step to the sidelines through the holidays and stay out of trouble," said Shawn McCambridge, an analyst for Prudential Bache Commodities.  

GLOBAL MARKETS: Stocks slip, dollar up as Irish bailout joy fades
NEW YORK, Nov 29 (Reuters) - Global stocks fell and the greenback rose as investors' optimism about Ireland's 85-billion-euro ($115 bln) debt bailout waned, exposing the unappetizing prospect that Europe's fiscal problems will linger.
"Tell me what the euro's going to do and I'll tell you where the (stock) market is going to go," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

France,Germany say euro saved, investors sceptical
BERLIN/PARIS, Nov 29 (Reuters) - Germany and France declared on Monday that Europe had taken decisive action to save the euro by rescuing Ireland and laying the foundations of a permanent debt resolution system, but investors were not convinced.
Under pressure to arrest the threat to the currency before markets opened and prevent contagion engulfing Portugal and Spain, EU finance ministers endorsed an 85 billion-euro ($115 billion) loan package on Sunday to help Dublin cover bad bank debts and bridge a huge budget deficit.

China c.bank official plays down FX inflow worries
SHANGHAI, Nov 29 (Reuters) - A set of data published by the People's Bank of China shows capital inflows jumped in October, reinforcing the government's rationale for a slew of recent monetary tightening steps.
The central bank and Chinese institutions spent 519 billion yuan ($78 billion) to absorb foreign exchange flowing into China last month, according to Reuters calculations based on the latest "Position for Forex Purchases" data published over the weekend.

PRECIOUS-Gold retreats as euro zone debt woes support dollar
LONDON, Nov 29 (Reuters) - Gold eased below $1,360 an ounce in Europe on Monday, surrendering earlier gains, as the dollar hit a fresh two-month high versus the euro amid concerns over debt levels in some parts of the euro zone.
Portugal is the next country that may struggle with its sovereign debt levels, investors fear, after both Greece and Ireland were forced to seek bailouts from the European Union earlier this year.

FOREX-Euro near 2-mth low, focus on Portugal, Spain
LONDON, Nov 29 (Reuters) - The euro hovered near two-month lows against the dollar on Monday as investors looked past a rescue package for Ireland to debt problems in other peripheral euro zone economies and sold the currency on any bounce.
European Union finance ministers endorsed an 85 billion euro package to help Dublin cover bad bank debts and bridge its budget deficit, and approved outlines of a permanent crisis- resolution system which could make private bond holders share the burden of restructuring sovereign debt after 2013.

Euro struggles despite Irish deal, doubts abound
SYDNEY, Nov 29 (Reuters) - Doubts over whether a rescue  deal for debt-soaked Ireland can plug Europe's debt crisis  drove the euro to two-month lows, though shares in  Europe and Asia managed to move higher.
"There are still lingering worries about the rest of the  countries, including Portugal and Spain," said Lorraine Tan,  the director of Asian equity research at Standard & Poor's.

Biofuel market to grow in 2011 on LatAm, higher oil
KUALA LUMPUR, Nov 29 (Reuters) - Global biodiesel output  may rise by a fifth to 21.6 million tonnes in 2011 as South  American nations push on with their mandates and competing  crude oil prices continue to rise, a key analyst said on Monday.
Biofuel output will hit 18 million tonnes this year and  the rising trend may contribute to tighter vegetable oil  supplies in the coming months and lift prices, said Chris de  Lavigne, Global Vice President of Industrial Practices at  Frost & Sullivan.