Emerging-Market Stocks Set for Weekly Drop on Growth Concerns
By Saeromi Shin
Sept. 9 (Bloomberg) -- Emerging-market stocks fell, with the benchmark index set for its first weekly drop in three weeks, as U.S. President Barack Obama’s $447 billion jobs plan failed to ease concerns that the global economy is slowing. The MSCI Emerging Markets Index declined 0.9 percent to 1,004.24 as of 5:33 p.m. Seoul time, set to end the week 1.7 percent lower. The Kospi Index led losses in Asia, sinking 1.8 percent before holidays in South Korea. The BSE India Sensitive Index retreated from a one-month high after the steel ministry lowered its forecast for demand growth. The Shanghai Composite Index erased gains of as much as 1.2 percent after China’s industrial output growth trailed estimates. Industrials and consumer discretionary stocks led the drop. Emerging-market equity funds reported a sixth week of outflows amid signs that the global economic recovery is faltering, Citigroup Inc. said. President Obama called on Congress to pass his job-creation package after employment growth stalled last month. European Central Bank President Jean-Claude Trichet said “downside risks” for the region’s economies have risen. “Hopes for stimulus plan drove shares higher recently, and now investors are turning their focus to actual economic conditions,” said Chu Moon Sung, a Seoul-based fund manager at Shinhan BNP Paribas Asset Management Co., which oversees $29 billion. “Debt concerns in Europe are still here.” MSCI’s index of developing nations has dropped 13 percent this year, compared with the 9.2 percent decline in the MSCI World Index. Companies on the emerging-market gauge are trading at 10.1 times estimated earnings, compared with 11.3 times for stocks on the MSCI World Index.
China’s Stocks Decline on Concern About Bank Loans, Economy
By Bloomberg News
Sept. 9 (Bloomberg) -- China’s stocks fell, extending a weekly drop, after Caixin magazine reported Liaoning province defaulted on about 85 percent of its debt servicing payments last year and industrial output growth trailed estimates. China Minsheng Banking Corp. and Huaxia Bank Co. dropped more than 1 percent. Anhui Conch Cement Co., the biggest cement producer, slid to the lowest since January after industrial output rose 13.5 percent in August, compared with economists’ estimate of 13.7 percent. Citic Securities Co. led gains for brokerages on speculation they will benefit from a plan allowing yuan funds in Hong Kong to invest in mainland stocks. “Debt defaults would be a big problem for local governments by curbing investment in infrastructure,”Richard Chen, a strategist at Jianghai Securities Co., said in Shanghai. “Investors are selling into rallies as concerns over the economic slowdown may drag the index lower.” The Shanghai Composite Index lost 8.3 points, or 0.3 percent, to 2,490.58 at 1:46 p.m. local time, extending a weekly loss to 1.5 percent. The gauge earlier climbed as much as 1.2 percent today after a report showed inflation easing in August from a three-year high. The CSI 300 Index slid 0.2 percent to 2,749.71. The Shanghai gauge has slumped 11 percent this year as the central bank raised interest rates five times and ordered lenders to set aside more cash as deposit reserves 12 times since the start of 2010 to contain inflation. It is valued at 11.6 times estimated earnings, matching a record low set on Sept. 6, according to daily data compiled by Bloomberg.
Baltic sea index turns positive, seen volatile
LONDON, Sept 8 (Reuters) - The Baltic Exchange's main sea freight index or BDI, which tracks rates to ship dry commodities, rose on Thursday helped by fresh cargo business and market players expected conditions to remain volatile.
The overall index rose 2.18 percent or 38 points to 1,782 points, after turning negative on Wednesday. Prior to the drop, it had risen for five previous sessions and has reached its highest level in nearly nine months this week. Last month the index had hit a near seven-month high.
Glencore eyes CO2 trade from ships-Point Carbon
LONDON, Sept 8 - Glencore , the world's biggest trader of physical commodities, said on Wednesday it is looking at ways it can cut its growing carbon footprint from its shipping activities ahead of any emissions trading scheme for the maritime sector.
The Switzerland-headquartered company, which earlier this year floated on the London Stock Exchange with a valuation of 37 billion pounds, said in its first sustainability report it was looking at ways of cutting emissions in key areas of its business.
Asia Dry Bulk-Capesize rates to ease further from year high
SINGAPORE, Sept 8 (Reuters) - Rates for capesize dry bulk carriers on key Asian freight routes are expected to ease over the next week as abundant supplies halt a sharp rally.
For smaller panamax vessels, rates are seen mixed with long-haul routes rising on strong iron ore and coal demand, while intra-Asia voyages ease on waning freight activity, shipbrokers said on Thursday.
Euro Coal-S.African trades at $114.60/T
LONDON, Sept 8 (Reuters) - European prompt physical coal prices fell by around 75 cents again on Thursday but the market remained range-bound with few trades reported.
Prices have drifted lower because Europe is still oversupplied and weak buying interest has emerged from end-users and traders.
India took 1.8 mln T S.Africa coal in Aug
LONDON, Sept 7 (Reuters) - The Atlantic basin market's share of South African coal exports dropped to 36 percent in August from 42 percent in July because other coal origins were cheaper in the European market, exporters said.
South African coal continues to see strong demand from Asia, particularly China.
"We're seeing steady Chinese demand for standard grade as well as lower quality and we think this will continue through the year - there are still power shortages and winter is on its way," one major exporter said.
Iron Ore-Key indexes fall, Chinese buying slackens
SHANGHAI, Sept 9 (Reuters) - Slower demand for iron ore by Chinese steelmakers marginally dragged down major global iron ore indexes, but solid fundamentals may cap falls as the country still expects to post annual record steel output.
Steel mills and iron ore traders in China, also the world's top steel producer and consumer, have become increasingly cautious about purchases amid the rapid rise of the key steelmaking ingredient price since mid-August.
India Apr-July iron ore exports down 21.86 pct-trade body
MUMBAI, Sept 9 (Reuters) - Iron ore exports from India, the world's third biggest exporter, fell 21.86 percent to 25.29 million tonnes during April-July weighed by higher costs and slow efforts to resume shipments in a key state, data from the trade body showed.
Exports of the steel-making ingredient fell 29.01 percent to 8.142 million tonnes in April, and fell 16.89 percent in May to 9.338 million tonnes, the Federation of Indian Mineral Industries (FIMI) said in a statement late on Thursday.
Iron ore market remains strong -Vale CEO
RIO DE JANEIRO, Sept 8 (Reuters) - Brazilian mining giant Vale is not seeing any slowdown in the global iron ore market despite a growing crisis in Europe and a weak U.S. economy, Chief Executive Murilo Ferreira said in an interview on Thursday.
Ferreira told Reuters he expects prices to remain strong as rising incomes and infrastructure spending in emerging markets, particularly China, keep driving demand for the steel ingredient.
China daily crude steel output down 2.2 pct in late Aug -CISA
SHANGHAI, Sept 8 (Reuters) - China's daily crude steel output fell 2.2 percent to 1.905 million tonnes in the last 11 days of August from the preceding 10 days, industry consultancy Custeel.com said on Thursday, citing data from the China Iron & Steel Association (CISA).
Several Chinese steel mills have scheduled maintenance over the summer to take advantage of the seasonal demand weakness during the period. Analysts expect steel output in the world's top steel-producing country to remain resilient over next two months.
China probes some steel imports from Japan, Europe
BEIJING, Sept 8 (Reuters) - China has begun an anti-dumping investigation of some high-grade stainless steel seamless tubes imported from Japan and Europe, the Ministry of Commerce said on Thursday.
In an announcement on its website, the ministry said it would evaluate the impact of such imports on the Chinese stainless steel industry.
China nickel ore imports to slow in H2 vs H1 - Jinchuan exec
SHANGHAI, Sept 7 (Reuters) - China's nickel ore imports are expected to slow in the second half compared with the first, an executive at the country's top nickel producer Jinchuan Group told Reuters on Wednesday.
Wu Jun, vice president of Jinchuan Group Ltd, which is also China's third-largest copper producer, said the company expects to achieve its 2011 output targets of 130,000 tonnes of nickel and 500,000 tonnes of copper.
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