Asia stocks rebound on hopes for euro zone plan (Bloomberg)
SINGAPORE, Sept 27 (Reuters) - Asian shares rebounded and the euro clung to gains on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis.
"It's a knee-jerk reaction to the world failing to come to an end last night," said Richard Morrow, director at Melbourne-based private client stockbroker E.L. & C. Baillieu. "It is a reversal and I don't see it lasting. The market has been as gloomy as I can remember since the last days of 2008."
European Stocks Rally for Third Day (Bloomberg)
European stocks climbed for a third straight day as policy makers increased efforts to contain the region’s sovereign-debt crisis. Asian shares and U.S. index futures advanced. BNP Paribas (BNP) SA and Societe Generale SA led a rally in banks, soaring more than 8 percent. MAN SE (MAN) gained 6.7 percent as European Union regulators cleared Volkswagen AG (VOW)’s takeover of the truckmaker. Novartis AG (NOVN), Europe’s second-biggest drugmaker by sales, rose 1.8 percent after its Seebri treatment showed positive results in two studies. The benchmark Stoxx Europe 600 Index climbed 2.1 percent to 224.79 at 8:51 a.m. in London. The gauge has surged 4.7 percent over the past three trading days after falling to a two-year low on Sept. 22. That’s the biggest three-day gain this month.
U.S. Senate Approves Bill to Avoid Government Shutdown, Fund Disaster Aid (Bloomberg)
The U.S. Senate reached a bipartisan deal on stopgap spending designed to avoid a government shutdown and defuse a fight over aid to victims of hurricanes, tornadoes and other natural disasters. Senators approved legislation yesterday, 79-12, to finance the government through Nov. 18, a measure including $2.65 billion for federal disaster assistance. With the expectation that the House would consent, senators also passed on a voice vote a measure to tide the government over through Oct. 4 so that the House, in recess this week, can consider the longer funding measure. The 2011 fiscal year ends on Sept. 30, and the House can approve the short-term bill by unanimous consent without bringing members back to Washington.
China Stock Index Rises From 14-Month Low on Easing Debt Concern (Bloomberg)
China’s benchmark stock index rose, climbing from its lowest close in 14 months, on speculation European policy makers will act to prevent the region’s debt crisis from worsening. Ping An Insurance (Group) Co. advanced 1.8 percent after the nation’s second-biggest insurer said its main shareholders haven’t reduced their stakes. China Shenhua Energy Co. and Jiangxi Copper Co., the nation’s biggest producers of coal and copper, gained as raw-material prices rebounded. Property developer Gemdale Corp. (600383) dropped to the lowest level in more than two years after Standard & Poor’s said Chinese developers face an “increasingly severe” credit outlook. “The support measures from the European Central Bank are quite crucial and ensure that there won’t be any debt default in the near term,” said Li Jun, a strategist at Central China Securities Co. in Shanghai.
FOREX-Euro wins reprieve on hopes for enhanced bailout fund
TOKYO, Sept 27 (Reuters) - The euro crawled up from eight-month lows as a report that Europe is considering beefing up its bailout fund prompted short-covering, and it could extend its rebound in the very near term given traders' overwhelmingly short positions in the currency.
"Markets are getting more confident around some action plan in Europe, which is positive, but on the other side, markets are also looking for more policy easing from the ECB, which is negative," said Greg
Wheat, corn up 1 pct on supply as drought persists
SINGAPORE, Sept 27 (Reuters) - U.S. wheat and corn futures rose more than 1 percent extending gains amid support from a weaker dollar and forecasts for tightening supplies as drought affects planting.
"The drought that has existed in the U.S. in the past 12 months is hampering the seeding programme for wheat for 2012," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia in Sydney.
Thai government cancels rice sale to Indonesia
BANGKOK, Sept 27 (Reuters) - Thailand's government has cancelled the sale of 300,000 tonnes of rice to Indonesia agreed under the previous administration that left office last month, although Indonesia's state procurement body said on Tuesday it had not been informed.
"The Public Warehouse Organisation signed an MOU in the middle of August, which would have become effective when the minister signed the deal, but I didn't sign," Thai Commerce Minister Kittirat Na Ranong told reporters, referring to the body that looks after government stockpiles.
Kazakh Oct-Dec grain exports seen at 2.5 mln T -union
ALMATY, Sept 27 (Reuters) - Kazakhstan should be able to export at least 2.5 million tonnes of grain in the three months from October to December 2011, the head of the country's grain industry lobby said on Tuesday.
Nurlan Tleubayev, president of the Grain Union of Kazakhstan, told a government meeting that the country should be able to export between 8 million and 9 million tonnes in each of the next two seasons, even if next year's crop were to fall below the bumper harvest expected in 2011.
W.Canada harvest 84 pct done, ahead of norm
WINNIPEG, Manitoba, Sept 26 (Reuters) - Western Canadian farmers have harvested 84 percent of their crops overall, well ahead of normal, the Canadian Wheat Board said on Monday.
Progress is ahead of the usual pace of 78 percent finished at this time of year, but rain early last week held back some farmers, said Bruce Burnett, director of weather and market analysis for the Wheat Board.
Rains may bring relief to parched Argentine farms
BUENOS AIRES, Sept 26 (Reuters) - Rains forecast to sweep into much of Argentina's farming belt from Wednesday should bring relief to thirsty wheat crops and allow corn seeding to pick up its pace, a weather specialist said on Monday.
Concern is growing over dryness in Argentina, which is being affected by the La Nina weather phenomenon for a second straight year, although forecasters do not expect its impact to be as severe this season.
Algeria's Jan-Aug grain imports up 37 percent
Sept 26 (Reuters) - Algeria's soft and durum wheat imports stood at 5.18 million tonnes during the first eight months of 2011,customs data showed, a 36.7 percent rise on the same period last year.
Soft wheat purchases rose to 4.1 million tonnes from 2.62 million tonnes in the January-August period of 2010, while durum wheat imports reached 1.28 million tonnes, up from 1.17 million tonnes.
Olam's long-term commods outlook bullish; cautious on cocoa
SINGAPORE, Sept 26 (Reuters) - Singapore-listed Olam International said on Monday the long-term outlook for most agricultural commodities was still bright despite the threat of a slowdown in demand triggered by economic woes, but weak fundamentals could work against cocoa.
Gold and copper suffered their biggest slump since the 2008 financial crisis as another brutal sell-off hit commodities on growing doubts Europe may be unable to prevent its debt crisis from dragging down the global economy.
Brent crude rises above $105 on euro debt action, dollar
SINGAPORE, Sept 27 (Reuters) - Brent crude rose above $105 as concerns over Europe's debt crisis eased temporarily and a weaker U.S. dollar sparked buying of dollar-denominated assets.
"Clarity on the euro zone plan is still key, crude prices are swinging back and forth depending on what comments come out of Europe," said Victor Say, an analyst with Informa Global Markets in Singapore.
Base metals rebound after three sessions of rout
SHANGHAI, Sept 27 (Reuters) - Shanghai base metals contracts rebounded led by gains in Asian equities, on hopes that euro zone officials will act to stem Greece's debt woes and prevent another full-blown global financial crisis.
"The shorts are starting to offset their positions today. Given how hard prices fell yesterday, most of them have earned enough margins to do so profitably," said Jinrui Futures analyst Zhao Kai.
Blackout cost Chile's Codelco 1,413 T copper
SANTIAGO, Sept 26 (Reuters) - A massive power blackout on Saturday that hit a clutch of mines and plunged millions of Chileans into darkness cost state copper giant Codelco 1,413 tonnes of the metal in lost output, the company said on Monday.
Codelco said the lost output included 670 tonnes at its Andina division, 710 tonnes at its Teniente division and 33 tonnes at its El Salvador division. Codelco's ventanas smelter was also impacted.
Indonesia smelters to ban tin ingot exports Oct. 1
PANGKAL PINANG, Indonesia, Sept 27 (Reuters) - Smelters in Indonesia's main tin-producing region of Bangka island have agreed to impose a full export ban on tin ingot from Oct. 1 until global prices recover, an industry group said on Tuesday.
Johan Murod, general secretary at the Indonesian Tin Industry Association, told Reuters after a meeting of smelter owners on Bangka that exports would resume only if tin prices , now around $20,000 per tonne, rise above $25,000.
Arcelomittal to cut back Luxembourg steel production
LONDON, Sept 26 (Reuters) - ArcelorMittal , the world's largest steelmaker, may temporarily halt melting steel and cut some steel re-rolling lines at its Schifflange and Rodange plants, in Luxembourg, in the face of the worsening economic situation.
The steelmaker had announced earlier this month that it will shut two blast furnaces, one at its plant in Eisenhüttenstadt, Germany, and one at its Florange plant in France, due to weaker steel demand in Europe.
Gold stages comeback with aid of weak dollar
SINGAPORE, Sept 27 (Reuters) - Spot gold rallied 1 percent snapping four consecutive sessions of losses as a weaker dollar helped battered commodities stage a comeback.
"In the last couple of days the market over-reacted to the situation in the euro zone and the U.S.," said Cameron Alexander, senior metals analyst at GFMS, a unit of Thomson Reuters.
Romania sees chance for gold, copper mine investment
BUCHAREST, Sept 26 (Reuters) - Romania has decided now is the time to revive the mining of its abundant but neglected gold and copper resources, especially as high metals prices mean it can demand bigger royalty fees and still attract vital Western investment.
The minerals drive includes the launch of the continent's biggest open cast gold mine, Rosia Montana, by Canada's Gabriel Resources and the placing into private hands of 60 percent of Romania's copper reserves.
Hard-hit gold bulls not yet out for the count
LONDON, Sept 26 (Reuters) - Gold's toppling from record highs, culminating in Monday's unprecedented $120 price plunge, has investors asking whether a decade-long bull run is over. History would suggest that while gold has taken a beating, it is far from down and out.
Monday's tumble to around $1,535 an ounce dragged prices 20 percent below the record $1,920 reached this month. But since its rise from just over $250 in early 2001, gold has bounced back from bigger drops, having fallen 25 percent between May and June 2006, and 27 percent in October 2008.
METALS-Base metals rebound after three sessions of rout
SHANGHAI, Sept 27 (Reuters) - Shanghai base metals contracts rebounded, led by gains in Asian equities, on hopes that euro zone officials will act to stem Greece's debt woes and prevent another full-blown global financial crisis.
"The shorts are starting to offset their positions today. Given how hard prices fell yesterday, most of them have earned enough margins to do so profitably," said Jinrui Futures analyst Zhao Kai.
PRECIOUS-Gold stages comeback with aid of weak dollar
SINGAPORE, Sept 27 (Reuters) - Spot gold rallied 1 percent , snapping four consecutive sessions of losses as a weaker dollar helped battered commodities stage a comeback.
"In the last couple of days the market over-reacted to the situation in the euro zone and the U.S.," said Cameron Alexander, senior metals analyst at GFMS, a unit of Thomson Reuters.
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