Chart reading : side way range bound.
Chart reading : correction range bound downside biased.
Chart reading : correction range bound downside biased.
Chart reading : correction range bound little downside biased.
Oil : US oil ends at 2-1/2-yr high on Mideast, gasoline
NEW YORK, March 23 (Reuters) - U.S. crude ended at a 2-1/2 year high on Wednesday as Palestinian rocket strikes on Israel escalated Middle East geopolitical risks and U.S. gasoline inventories posted the biggest seasonal decline on record.
Brent crude fell, narrowing its premium to U.S. oil futures, as part of a wave of profit-taking on the spread between the two contracts which has jumped to record highs this year due to bulging inventories in the U.S. Midwest.
COMMODITIES: Oil, metals jump as investors cherry-pick markets
NEW YORK, March 23 (Reuters) - Oil and metals continued to ramp up on light volume on Wednesday as investors cherry-picked commodity assets in markets fraught with uncertainty due to the festering Middle East crisis and Japan's nuclear woes.
U.S. crude oil hit a two-week high above $105 a barrel as unrest in the Middle East and North Africa flared. Oil was also boosted by a report showing a sharper-than-expected drop in U.S. gasoline stockpiles despite rising pump prices.
GLOBAL MARKETS: Euro pressured by Portugal; shares gain
SINGAPORE, March 24 (Reuters) - The euro was under pressure on Thursday after Portugal's prime minister resigned following parliament's rejection of his austerity plans, while Asian stocks eked out small gains as higher commodities prices lifted materials shares.
The resignation of Prime Minister Jose Socrates was seen as increasing the likelihood that Portugal will join Greece and Ireland in requiring a bailout from the European Union.
U.S. New-Home Sales Unexpectedly Fall to Lowest on Record (Source: Bloomberg)
Purchases of new U.S. homes unexpectedly declined in February to the slowest pace on record and prices dropped to the lowest level since December 2003, adding to evidence the industry is floundering.
Portugal Pushed Closer to EU Bailout After Socrates Budget Cuts Defeated (Source: Bloomberg)
Portuguese Prime Minister Jose Socrates tendered his resignation after plans to cut the budget were rejected by parliament, pushing the country closer to an international bailout.
Japan Quake May Cut Global Growth to 3.8%, Morgan Stanley Says (Source: Bloomberg)
Japan’s worst disaster since World War II likely won’t “derail” worldwide economic growth, as the crisis cuts global expansion this year by 0.5 percentage point to 3.8 percent, according to Morgan Stanley.
Fed’s Fisher Sees “Extraordinary Speculative Activity” in U.S. Economy (Source: Bloomberg)
Federal Reserve Bank of Dallas President Richard W. Fisher said he sees “extraordinary speculative activity” in the U.S. after the central bank pumped record amounts of stimulus into the economy.
Bank of England Voted 6-3 to Hold Rate to Assess Impact of Increase in Oil (Source: Bloomberg)
Bank of England policy makers voted 6-3 to keep interest rates on hold this month and saw “merit in waiting” to assess the impact of rising oil prices on inflation, which they forecast may exceed 5 percent.
Osborne Lowers U.K. Growth Forecast, Increases Borrowing, Cuts Company Tax (Source: Bloomberg)
Chancellor of the Exchequer George Osborne said the British economy will grow more slowly than forecast in 2011 and the U.K. will need to borrow more than previously thought in the next five years.
Treasuries Decline as Fed Purchases Less Debt Than Average, Stocks Rally (Source: Bloomberg)
Treasuries fell after the Federal Reserve bought less debt than average under its $600 billion program to use asset purchases to support the U.S. economic recovery and stocks rose.
Oil Falls From 30-Month High as U.S. Crude Stockpiles Gain Outweighs Libya (Source: Bloomberg)
Oil fell from the highest since September 2008 in New York as U.S. crude inventories rose more than analysts forecast, overshadowing threats to supplies from the conflict in Libya and Middle East unrest.
N.Z. Dollar Gains After Economy Expands, Recession Avoided (Source: Bloomberg)
The New Zealand dollar rose to a two-week high against the greenback after the nation’s economy expanded by more than some economists expected, avoiding a second straight quarter of contraction.
Tokyo to Distribute Bottled Water After Radiation Levels Climb (Source: Bloomberg)
Tokyo authorities will distribute bottled water to families with infants after determining that tap water may be unsafe for babies following radiation leaks from a nuclear plant disabled by the March 11 earthquake.
Libya Conflict May Spur Sales of Battle-Proven Eurofighter Jet (Source: Bloomberg)
Dogfights over Libya may spur sales of Eurofighter GmbH’s 65 million-pound ($106 million) Typhoon warplane as the enforcement of a no-fly zone against Muammar Qaddafi gives the jet a chance to prove its battle credentials.
Japan’s Government Bonds May Fall on Concerns Stock Gains Will Sap Demand (Source: Bloomberg)
Japan’s 10-year bonds may fall, halting yesterday’s advance, on speculation local stocks will follow gains in U.S. equities and damp demand for the relative safety of government debt.
Dollar Index Near 15-Month Low on Global Recovery Signs; Kiwi Strengthens (Source: Bloomberg)
The Dollar Index was within 0.8 percent of a 15-month low before reports today that economists said will show the U.S. job market and French manufacturing improved, damping demand for the safety of the U.S. currency.
China Should Revive ‘Through-Train’ Hong Kong Investment Plan, Guotai Says (Source: Bloomberg)
China should revive a plan to allow its citizens to invest directly in Hong Kong stocks, said Yim Fung, chief executive officer of Guotai Junan International Holdings Ltd. (1788), a unit of China’s second-largest brokerage.
Japanese Stock Futures Rise on Factory Restarts, Oil; Australia Advances (Source: Bloomberg)
Japanese stock futures rose as some manufacturers said they will restart work at factories following the March 11 earthquake and tsunami, and after commodity prices increased. Australian stocks gained.
Corn (Source: CME)
US corn futures end lower amid profit-taking after the government didn't confirm talk of export sales to China. Chatter about such deals pushed prices sharply higher last week by renewing concerns about tight supplies. Still, lingering supply worries limited losses today as wet weather may prevent farmers from planting enough corn this spring to replenish inventories, analysts say. The USDA will issue its plantings estimate March 31. CBOT May corn drops 5 3/4c to $6.81/bushel.
Wheat (Source: CME)
US wheat futures finish lower on hopes snow will ease dryness threatening production in the Plains. Forecasters predict Kansas, the country's top wheat-growing state, will receive up to an inch of badly needed moisture from rain and snow in the coming days. The outlooks weighed on KCBT prices, in particular, as the exchange trades the variety of wheat grown in the Plains, analysts say. CBOT May wheat ends down 8c at $7.14 1/4 a bushel, KCBT May loses 15c to $8.30 and MGE May drops 7c to $8.59.
Oats (Source: CME)
Oat futures extended losses, with the May contract slipping 2 1/2 cents, or 0.7%, to $3.39 1/2 a bushel.
FDA Bans Some Japanese Milk, Produce Imports (Source: CME)
The Food and Drug Administration will ban imports of milk and fresh fruit and vegetables from areas near the Fukushima Daiichi nuclear plant that was damaged by the March 11 earthquake and tsunami in Japan. The FDA issued an import alert late Tuesday, allowing the agency to detain certain food at the border. The Japanese Ministry of Health, Labour and Welfare has confirmed the presence of radioactive iodine in dairy, fresh produce and infant formula from areas around the nuclear power plant. Specifically, the import alert affects dairy and produce products from the four Japanese prefectures of Fukushima, Ibaraki, Tochigi and Gunma. The FDA said it would continue to flag all food entries from Japan in order to determine whether they originated from the affected area, and will test food and feed shipments from the affected area for radiation contamination.
However, the FDA said it appears that food produced in Japan since the earthquake has not reached the U.S. The Japanese government has already ordered a stop to the sale of raw milk, spinach and kakina, a local vegetable, from the affected areas. The FDA said foods imported from Japan constitute less than 4% of foods imported into the U.S., with dairy products representing an even smaller fraction. Most dairy products in the U.S. market are produced domestically.
UN FAO: Global 2011 Wheat Output Seen Up 3.4% At 676M Tons (Source: CME)
World wheat production will total 676 million metric tons in 2011, a growth of 3.4% from last year's levels but still below the bumper harvests of 2008 and 2009, according Wednesday to a report by the United Nations' food body. Wheat plantings in many countries have increased or are expected to increase this year in response to strong prices, the Food and Agriculture Organization noted in its latest edition of the Crops Prospects and Food Situation report. At the same time, yield recoveries are forecast in areas that were affected by drought in 2010, the Russian Federation in particular, the FAO report noted. The majority of global coarse grains and paddy crops are still to be planted, making it difficult to forecast total cereal production for 2011, the report added.
Japan parts paralysis spreads as firms cut output
TOKYO, March 22 (Reuters) - Sony Corp cut output at five more plants and Toyota Motor Corp delayed restarting assembly lines, as the global supply of parts and products began to feel the full impact of Japan's catastrophic earthquake.
Global electronics and autos companies have been hardest hit by the turmoil, but in an illustration of how the ripples are spreading, Rio Tinto, the world's No. 2 iron ore miner behind Brazil's Vale, warned the disruptions posed a threat to its expansion plans.
PRECIOUS-Gold's appeal boosted by Portugal vote
LONDON, March 23 (Reuters) - Gold rose on Wednesday as investors bought the precious metal on fears that a key vote in Portugal could topple the country's government and on soaring tensions in the Middle East.
"Today there is focus on Portugal. There are debt problems more generally in the western world and of course we should not forget the Middle East, which also leads to safe-haven flows," said Christin Tuxen, analyst at Danske Bank.
FOREX-Euro falls as EU delays bailout fund increase
LONDON, March 23 (Reuters) - The euro fell against the dollar on Wednesday on disappointment at a delay in increasing a euro zone bailout fund and on wariness before a Portuguese vote on austerity measures.
"This is another euro-negative piece of news -- countries could struggle to sell this (increased participation) at home," said a London-based head of FX sales.
U.S wheat up on U.S. Weather, corn, soy down on lower demand
BEIJING, March 23 (Reuters) - U.S. wheat rallied in early Asian trade on concerns dry weather in the U.S. Plains may limit supply, while soy and corn extended losses. "China is not going to buy corn (at current prices), limiting room for a further price rise," said Wang Zairong, an analyst with COFCO Futures Co. Ltd.
China aims for 8th consecutive grain output rise this yr-Cabinet
BEIJING, March 23 (Reuters) - China will spare no effort in achieving an eighth consecutive grain output increase this year, the Cabinet said on Wednesday.
"Guaranteeing a (grain) supply has a very significant meaning in managing inflation expectations, stabilizing the general consumer prices as well as realizing a stable and relatively fast economic growth and harmonious society," said the State Council in a statement published on the government web site.
Portugal vote dents euro, tempers equities
LONDON, March 23 (Reuters) - Investors grew increasingly uneasy over the euro zone's finances ahead of a parliamentary vote in Portugal on Wednesday that could bring down the government, denting the euro and tempering an equities rally. "If these measure are not agreed, it seems more and more likely that Portugal will need some kind of support," said Charles Diebel, head of market strategy at Lloyds Bank.
Radiation in Tokyo water; U.S. curbs Japan food imports
TOKYO, March 23 (Reuters) - Japanese authorities advised against allowing infants to drink tap water in Tokyo due to raised radiation levels and the United States became the first nation to block some food imports from Japan.
The crisis at the tsunami-smashed nuclear power plant, 250 km (150 miles) north of the Japanese capital, appeared far from over with workers attempting to gain control ordered to leave the site after black smoke began rising from one of its six reactors.
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