20110810 1102 Global Market & Commodities Related News.

China’s Trade Surplus Surges to $31.5 Billion (Source: Bloomberg)
China’s trade surplus surged to $31.5 billion in July, the highest level in more than two years, as exports rose to a record. Outbound shipments climbed 20.4 percent from a year earlier, compared with the 17 percent median forecast in a Bloomberg News survey of 25 economists. Imports climbed 22.9 percent, the customs bureau said on its website today. The surplus exceeded a median forecast of $27.4 billion. The world’s biggest exporting nation faces the threat of weakening demand as developed nations from Europe to the U.S. and Japan struggle to rein in their debt burdens. The U.S. Federal Reserve countered a global rout in stocks by pledging yesterday to keep interest rates at a record low through mid- 2013 and to use additional measures “as appropriate.”


GLOBAL MARKETS: Asia stocks bounce after Fed move stems rout
SINGAPORE, Aug 10 (Reuters) - Asian stocks rebounded on Wednesday, following a jump in U.S. shares, after the Federal Reserve made an unprecedented pledge to keep interest rates near zero for at least two years, stemming a global equity rout for the time being.
"Volatility is calming down from an extreme level. Clearly there's going to be considerable concerns still, but the market had got seriously carried away and gone to an extreme of fear," said Greg Gibbs, strategist at RBS in Sydney.

OIL: Brent rises $2 on Fed promise of low interest rates
SINGAPORE, Aug 10 (Reuters) - Brent crude rose $2 in early Asian trade on Wednesday, extending the previous session's gains, after the U.S. Federal Reserve promised to extend near-zero interest rates for two more years.
The Federal Reserve took the unprecedented step of promising to keep interest rates near zero for at least two more years and said it would consider further steps to help growth.

POLL-US crude stocks seen higher as SPR barrels pour in
BANGALORE/NEW YORK, Aug 9 (Reuters) - U.S. crude oil stockpiles were forecast to have risen for the third straight time last week as releases from the Strategic Petroleum Reserve kept moving into commercial inventories, an expanded Reuters poll showed Tuesday ahead of weekly inventory data.
Twelve analysts polled expected a build in crude stocks for the week to Aug. 5, with the average forecast coming in at 1.5 million barrels.

U.S. oil stocks post surprise drop, API data shows
NEW YORK, Aug 9 (Reuters) - U.S. crude and product stocks posted a surprise drop last week, as imports fell and refiners processed more oil, weekly data from oil industry group American Petroleum Institute showed on Tuesday.
Crude stocks fell by a sharp 5.2 million barrels, compared with analysts' forecast for a 1.5 million barrel build. Crude imports fell 143,000 barrels per day to 9.19 million bpd.

Costly gasoline, weak economy hits US summer driving
NEW YORK, Aug 9 (Reuters) - Americans are driving less this summer, discouraged by high gasoline prices, economic uncertainty and mounting fears of a double-dip recession.
MasterCard reported that in July, gasoline demand posted its lowest monthly average since the company has been keeping records, as consumers faced steeper costs at the pump and worried about the economy.

U.S., OPEC cut world oil demand growth on economy
WASHINGTON/LONDON, Aug 9 (Reuters) - Global oil demand will grow less than previously projected this year, according to forecasts on Tuesday from the U.S. and OPEC, as a worsening economic outlook will curb consumption in developed countries.
The cut by the U.S. Energy Information Administration and a more pessimistic forecast by the Organization of the Petroleum Exporting Countries were in line with reductions by other forecasters such as investment bank Barclays Capital, as slowing growth hits consumers and businesses.

Australia gas sector seen on growth path despite concerns
SYDNEY, Aug 9 (Reuters) - Australia's gas sector remains an attractive investment despite a slide in global markets, though there are concerns over the availability of labour and capital, the head of Lloyds Bank's oil and gas division said on Tuesday.
Australia's liquefied natural gas (LNG) export industry has about $200 billion projects on the drawing board aimed at feeding Asia's voracious appetite for energy.

NATURAL GAS: NYMEX - Natural gas ends up on tech buying, warmer forecasts
NEW YORK, Aug 9 (Reuters) - U.S. natural gas futures ended higher on Tuesday, backed by technical buying after a three-week sell off and warmer extended forecasts for the Northeast and Midwest despite comfortable supplies and milder northern tier temperatures this week that should slow demand.
"We're seeing a lot of end-user buying interest with prices below $4, and forecasters are calling for warmer weather again next week," a Pennsylvania-based trader said. Technical traders also said the market was oversold and due for a bounce after sinking 13 percent in the last three weeks.

EURO COAL: Prices weaker, players stay on sidelines
LONDON, Aug 9 (Reuters) - Prompt physical coal prices fell on Tuesday in light activity as growing turmoil on financial markets took its toll and players stayed on the sidelines.    
"Look at the rest of the contagion you see out there. People are not really focused on taking positions at the moment and are playing defensive," a European trader said.

COMMODITIES: After Fed gyrations, gold pares gains, oil up
NEW YORK/LONDON, Aug 9 (Reuters) - Commodity markets ended a volatile session only modestly changed on Tuesday, with gold pulling back from a record and oil prices erasing losses after the Federal Reserves promised two more years of near-zero rates.
"It basically says we are going to be in a very slow growth period for the foreseeable future," said King Lip, chief investment officer for Baker Avenue Asset Management in San Francisco.