Stocks edge up ahead of Fed, euro recovers
SINGAPORE/HONG KONG, Sept 21 (Reuters) - Asian stocks edged up and the euro clawed back lost ground as investors waited for the end later of a Federal Reserve policy meeting expected to announce further steps to stimulate the flagging U.S. economic recovery.
"Markets fluctuate so much during the day these days it's very hard to pick a trend," said David Spry, analyst at F.W. Holst in Melbourne. "Anyone who thinks the market's just going to recover quickly is going to be misplaced."
The Lloyd's of London insurance market crashed to a first-half loss of 697 million pounds ($1 billion), weighed down by record claims from natural catastrophes including the March 11 Japanese earthquake and tsunami.The loss compares with a profit of 628 million pounds a year earlier, and reflects a total of 6.7 billion pounds in claims absorbed during the first half, making it the costliest six-month period in Lloyd's 323-year history.Many insurers have reported steep half-year losses after an unprecedented run of natural disasters which also included an earthquake in New Zealand and heavy flooding in Australia. (Source: Unknown)
Most Asian Stocks Rise as China’s Economy Seen Withstanding Europe Crisis (Bloomberg)
Most Asian stocks rose after a gauge of economic indicators signaled growth in China is withstanding Europe’s debt crisis and a faltering U.S. economy. The MSCI Asia Pacific Index trimmed advances in late trading as European markets opened lower. China Life Insurance Co., the nation’s biggest insurer by market value, rose 1.6 percent in Hong Kong after the Conference Board said its leading indicator index for the world’s second- largest economy rose 0.6 percent in July, citing a preliminary reading. BHP Billiton Ltd. (BHP), the world’s largest mining company, climbed 0.9 percent in Sydney, reversing an earlier decline of as much as 0.5 percent. Esprit Holdings Ltd. plunged 11 percent after Morgan Stanley listed it as one of the Asian companies most at risk from Europe’s debt crisis.
The MSCI Asia Pacific Index, which swung between gains and losses at least seven times today, rose 0.1 percent to 117.99 as of 5:44 p.m. in Tokyo. About five stocks rose for each four that fell, as speculation grew that the Federal Reserve will today announce steps to bolster the world’s biggest economy. The gauge fell for the past two weeks on concern Europe’s debt crisis is spreading and signs of slowing U.S. growth.
Bernanke Has Few Tools to Heal Economy (Bloomberg)
U.S. mortgage rates are the lowest in at least four decades, with a 30-year fixed loan available at 4.09 percent. That didn’t help Alexis Wolf buy a townhome in Beaverton, Oregon. “Unless you have family help, you’re stuck renting,” said Wolf, 26, a real estate broker who turned to relatives for a loan because she didn’t have the credit and employment history needed to qualify for a mortgage. Wolf’s experience illustrates the predicament for Federal Reserve policy makers as they end a two-day meeting today to consider ways to boost economic growth. Low interest rates, the traditional medicine for a flagging economy, aren’t helping housing, which since 1982 has aided every recovery except the current one.
U.S. wheat, soy tick up; corn awaits China's move
SINGAPORE, Sept 21 (Reuters) - U.S. wheat and soy futures ticked higher despite escalating worries about the global economy and the IMF warning the United States could slip back into recession, while corn hardly moved as dealers awaited a possible purchase by China.
"Under normal circumstances we would expect prices to rise. But what we have right now in terms of the global economic environment is anything but a normal environment, and that's what's pressuring prices lower," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia in Sydney.
Indonesia Sulawesi Aug cocoa exports drop 76.7 pct y/y
JAKARTA, Sept 21 (Reuters) - Indonesia's cocoa bean exports from the main growing island of Sulawesi continued to drop in August to 8,421.50 tonnes from 36,167.56 tonnes a year ago, or 76.7 percent, industry data showed on Wednesday.
Indonesia is the world's third largest cocoa producer after Ivory Coast and Ghana.Cocoa shipments from Sulawesi to the United States have stopped since at least July because of high premiums and quality problems that led to automatic detention by U.S quarantine.
China to release 3.7 mln tonnes corn reserves, imports expected
BEIJING/SINGAPORE, Sept 20 (Reuters) - China will sell about 3.7 million tonnes of state corn reserves by November in a bid to cool record prices and take the heat off food inflation, which the government fears may fuel social unrest.
Tuesday's announcement by the State Grain Administration is likely to support corn prices, with some traders in the United States saying the world's second-biggest consumer of the grain was asking about buying up to 5 million tonnes of U.S. corn.
Russian wheat seeks to conquer fresh markets
HAMBURG/LONDON, Sept 20 (Reuters) - Russian wheat exporters aim to ramp up sales to nascent markets such as South America due to their cheap price edge, which may also give a boost to freight rates which are struggling with a ship glut.
Millions of tonnes of low-priced Russian wheat have surged onto global markets since Russia ended a near year-long grain export ban in July, sweeping aside competitors including those from Europe and the United States.
Centam, Mexico, Colombia coffee exports rise in Aug
MEXICO CITY, Sept 20 (Reuters) - Coffee exports from Central America, Mexico, Colombia, Peru and the Dominican Republic rose 12 percent to 24.7 million 60-kg bags in October through August from the prior harvest, Guatemalan growers' group Anacafe said Tuesday.
The 2010/11 coffee harvesting season will come to a close next month.
Corn fungus adds to hard year for U.S. farmers
OVERLAND PARK, Kan., Sept 20 (Reuters) - Corn farmers in some parts of the U.S. Plains are finding their newly harvested crop has to be heavily discounted or cannot be sold at all due to the presence of a vicious fungus that makes the corn dangerous to eat.
The culprit is "aflatoxin" - toxins produced by a fungus that can harm and possibly kill livestock and are considered carcinogenic to animals and humans.
Cargill to rebuild, expand N.Dakota oilseed plant
Sept 20 (Reuters) - U.S. agribusiness giant Cargill Inc said on Tuesday it is planning a $50 million-plus project to rebuild and expand its 30-year-old oilseed processing plant in West Fargo, North Dakota.
Construction is set to begin this fall with completion expected by the 2013 U.S. harvest, Cargill said.
Russia in zinc mining deal with Iran
MOSCOW, Sept 20 (Reuters) - Russia has agreed to develop an Iranian zinc deposit that is among the largest in the world in a deal involving an Iranian bank facing international sanctions, its Energy Ministry said on Tuesday.
The agreement to develop the Mehdiabad zinc and lead deposit was reached at a trade meeting on Sept. 11 that brought Russia's Energy Minister Sergei Shmatko to Iran, the ministry said in emailed comments.
Dry Argentine weather fuels fight for crop acreage
BUENOS AIRES, Sept 20 (Reuters) - Dry weather that is delaying corn plantings in the world's No. 2 exporter, Argentina, could force some farmers to turn over more land to later-planted soybeans instead.
Growers in the South American country recently started sowing 2011/12 corn, but parched fields are slowing their progress, leading industry analysts to predict some will hold off and plant more lucrative soy toward the end of the year.
Indonesia to lift palm oil export tax to 16.5 pct in Oct
JAKARTA, Sept 20 (Reuters) - Indonesia will lift its crude palm oil export tax to 16.5 percent for October, from 15 percent this month, the industry ministry said on Tuesday.
The rise was based on a reference price for crude palm oil of $1,044 a tonne, said Saiz Ahmad, director for food industries at the industry ministry.
Brent slips closer to $110 as IMF cuts growth forecast
SINGAPORE, Sept 21 (Reuters) - Brent crude futures slipped closer to $110, reversing from gains in the previous session after the International Monetary Fund warned that the United States and Europe could slip back into recession.
"It is very difficult to hold on to your positions given the uncertainty in the global economy," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
Libya to restart Mesla oilfield in 2-3 days
TRIPOLI, Sept 20 (Reuters) - Libya's Benghazi-based Arabian Gulf Oil Company (Agoco) said it plans to restart production at its Mesla field in eastern Libya within two to three days.
"We will start in two to three days the Mesla field. We will then start blending it with Sarir," said Agoco spokesman Abdeljalil Mayuf.
Malaysia expansion sets the stage for 'Greater Singapore' oil hub
SINGAPORE, Sept 20 (Reuters) - An unprecedented expansion of oil infrastructure in southern Malaysia over the next five years is set to create a "Greater Singapore" trading hub that will help the region retain its edge over competitors such as China.
Instead of competing with Singapore, the new infrastructure -- including a state-of-the-art petroleum complex and capacity increases to storage -- will lead to greater flows of oil and help meet growing demand from traders for more liquidity to feed increasing pricing activity.
Russia in zinc mining deal with Iran
MOSCOW, Sept 20 (Reuters) - Russia has agreed to develop an Iranian zinc deposit that is among the largest in the world in a deal involving an Iranian bank facing international sanctions, its Energy Ministry said on Tuesday.
The agreement to develop the Mehdiabad zinc and lead deposit was reached at a trade meeting on Sept. 11 that brought Russia's Energy Minister Sergei Shmatko to Iran, the ministry said in emailed comments.
Europe steel production: the boom is over
LONDON, Sept 20 (Reuters) - European steelmakers will be forced to cut crude steel capacity utilisation and may idle some furnaces in the next few months, after producing at high levels in the first half this year, as weaker demand, prices and destocking hit their sales.
Last spring, crude steel production in Europe was accelerating and it seemed that the industry was slowly but surely sailing back towards record levels last hit in 2008.
Japan August crude steel output down 2.7 pct mth/mth
TOKYO, Sept 20 (Reuters) - Japan's crude steel output fell 2.7 percent in August from the previous month as construction steelmakers stepped up seasonal output cuts, while the yen's strength hurt exports at Japan's top two steelmakers, an industry body said on Tuesday.
August output, which is not seasonally adjusted, came to 8.91 million tonnes, the Japan Iron and Steel Federation said.
Australia lifts iron ore projections, coal lags
SYDNEY, Sept 20 (Reuters) - Australia lifted its projections for iron ore output and exports on Tuesday, defying concerns over the global economy as Asian demand roars along, though it cut its forecast for coal output on a slow recovery from natural disasters.
Exports of iron ore, a key steelmaking ingredient, are seen at 449 million tonnes -- 40 percent of global trade -- in fiscal 2012, a 3 percent increase from an earlier projection and a 10 percent rise on the previous year, as Japanese and Chinese steel output expands rapidly.
Copper in London rises from 9-month low
SINGAPORE, Sept 21 (Reuters) - Copper on the London Metal Exchange rose as investors purchased the metal after prices fell to the lowest level in nine months, making the commodity attractive to purchase.
"The economy is still the general concern and the negative sentiment remains but China's restocking," said Jonathan Barratt, managing director for Commodity Broking Services in Sydney.
Japan Aug rolled copper output down 5.3 pct yr/yr
TOKYO, Sept 21 (Reuters) - Japan's output of rolled copper products in August logged its biggest year-on-year fall this year, dropping 5.3 percent as demand for use in chips, connectors and automobiles remained weak, an industry body said on Wednesday.
Production has stayed at a low level since early this year as user industries reduced domestic output particularly after the massive earthquake on March 11.
Copper market deficit at 130,000 T in H1 2011
NEW YORK, Sept 20 (Reuters) - World refined copper consumption exceeded production by 130,000 tonnes during the first half of this year compared with a deficit of 286,000 tonnes in the first six months of 2010, an industry report showed on Tuesday.
"During the first half of 2011, world apparent usage grew by a modest 1 percent compared with that in the first half of 2010," the International Copper Study Group (ICSG) said in its latest monthly bulletin.
Russia in zinc mining deal with Iran
MOSCOW, Sept 20 (Reuters) - Russia has agreed to develop an Iranian zinc deposit that is among the largest in the world in a deal involving an Iranian bank facing international sanctions, its Energy Ministry said on Tuesday.
The agreement to develop the Mehdiabad zinc and lead deposit was reached at a trade meeting on Sept. 11 that brought Russia's Energy Minister Sergei Shmatko to Iran, the ministry said in emailed comments.
Gold hovers around $1,800 ahead of Fed meeting
SINGAPORE, Sept 21 (Reuters) - Gold prices hovered around $1,800 an ounce as worries about a worsening euro zone debt crisis supported the safe-haven sentiment, while investors awaited the conclusion of a U.S. Federal Reserve policy meeting for trading cues.
"The expectation of some sort of easing from the Fed and poor economic data will make it difficult for gold to break much sharply below $1,800," said Li Ning, an analyst at Shanghai CIFCO Futures.
Gold bug turned bear strikes lone pose
MONTREAL, Sept 20 (Reuters) - After gold's 10-year winning streak shattered all but the most bullish forecasts, it takes a brave man to call for a correction. It takes an even braver man to do so at the year's biggest bullion conference.
Christoph Eibl, CEO and founding partner of the $2 billion Swiss commodity hedge fund Tiberius Group, says he knows all the arguments that have underpinned bullion's long rally, which has accelerated with a 50 percent gain in the past 12 months.
Gold to clear $2,000 in 2012 as rally cools-LBMA poll
MONTREAL, Sept 20 (Reuters) - Gold's rally will extend beyond $2,000 an ounce in the next year, but won't match the record-breaking 50 percent surge of the last 12 months, according to an annual survey of gold investors and analysts at the world's biggest bullion traders event.
With no let up seen in the financial markets uncertainty that fanned the safe-haven investment spree, bullion is expected to rise to $2,019 an ounce by November 2012, according to an anonymous survey of delegates at the conclusion of the London Bullion Market Association's (LBMA) annual conference on Tuesday. That is about 12 percent above current levels.
METALS-Copper in London rises from 9-month low
SINGAPORE, Sept 21 (Reuters) - Copper on the London Metal Exchange rose as investors purchased the metal after prices fell to the lowest level in nine months on Tuesday, making the commodity attractive to purchase.
"The economy is still the general concern and the negative sentiment remains but China's restocking," said Jonathan Barratt, managing director for Commodity Broking Services in Sydney.
PRECIOUS-Gold hovers around $1,800 ahead of Fed meeting
SINGAPORE, Sept 21 (Reuters) - Gold prices hovered around $1,800 an ounce, as worries about a worsening euro zone debt crisis supported the safe-haven sentiment, while investors awaited the conclusion of a U.S. Federal Reserve policy meeting for trading cues.
"The expectation of some sort of easing from the Fed and poor economic data will make it difficult for gold to break much sharply below $1,800," said Li Ning, an analyst at Shanghai CIFCO Futures.
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