Asian Stocks Drop Most in Two Weeks as Germany Dashes Europe-Debt Optimism (Bloomberg)
Asian stocks fell, driving the region’s benchmark index toward its biggest drop in two weeks, as Germany damped expectations for a fast resolution to Europe’s debt crisis, souring the outlook for Asian exporters and banks. BHP Billiton Ltd. (BHP), the world’s No. 1 mining company, slipped 3.4 percent in Sydney after commodity prices slumped. Sony Corp., which gets about 70 percent of its revenue overseas, dropped 1.7 percent in Tokyo. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender, lost 1.8 percent after U.S. banks Citigroup Inc. and Wells Fargo & Co. said quarterly revenue dropped.
“The implied lack of urgency by European policy makers will create additional uncertainty regarding a robust, all- encompassing solution to Europe’s growing list of problems,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Increased uncertainty will feed through to investor nervousness and is likely to see risk reduced by investors as they move to lock in gains from the past couple of weeks.”
China Economy Grows at Slowest Pace in 2 Years (Bloomberg)
China’s economy grew 9.1 percent in the third quarter from a year earlier, the slowest pace since 2009, on monetary tightening and weaker export demand. The gain was less than the median estimate of 9.3 percent in a Bloomberg News survey of 22 economists and follows a 9.5 percent gain in the previous three months. The statistics bureau released the data in Beijing today. Premier Wen Jiabao may need to weigh more measures to support growth after the State Council this month announced aid for small businesses. Asian stocks slid today, adding to global declines after German Chancellor Angela Merkel’s office knocked down what it called “dreams” that an Oct. 23 summit will be the last word in taming the euro region’s debt crisis. “While a shift to a looser monetary policy isn’t warranted yet, some sector-specific easing is needed to ease the financing difficulties facing smaller businesses,” Tim Condon, Singapore- based head of Asian research at ING Groep NV (INGA), said before the report.
Asian policy makers face a “delicate balancing act” with inflation remaining elevated while Europe’s sovereign-debt crisis threatens growth, the International Monetary Fund said last week.
Oil falls as Germany dampens hope for debt plan
NEW YORK, Oct 17 (Reuters) - Brent crude prices fell nearly 2 percent in light trading volume on Monday after Germany's finance minister said an upcoming European Union summit would not produce a definitive resolution to the euro zone debt crisis.
"Germany's comments pulled oil back and the euro fell, strengthening the dollar," said Phil Flynn, analyst at PFGBest Research in Chicago.
COMMODITIES-Warnings against euro debt plan hit oil, metals
NEW YORK, Oct 17 (Reuters) - Nearly all commodity markets, from oil to industrial metals and even coffee, closed lower on Monday after Germany's finance minister warned against expecting a "definitive solution" to Europe's massive debt problems from the coming weekend summit.
"It's a dose of reality. The market got ahead of itself," said Alan Ruskin, global head of G10 FX strategy at Deutsche Bank in New York, speaking of the euro.
GLOBAL MARKETS-Stocks, euro fall on German finmin comments
NEW YORK, Oct 17 (Reuters) - U.S. and European stocks fell on Monday and the euro slipped, after Germany dashed hopes that the euro zone debt crisis would be resolved at next Sunday's summit of European leaders.
"I am absolutely sure that we will get a pretty robust package in 10 days' time," said Milligan, speaking in New York. "But I think we will not get as much detail as we would like to see. ... It's going to take some months before a number of the issues are sorted out."
Natural gas ends down despite chilly forecast
NEW YORK, Oct 17 (Reuters) - U.S. natural gas futures ended lower on Monday in fairly modest trade, as pressure from growing supplies and technical selling after last week's strong gains offset support from colder forecasts for the next two weeks.
"We pulled back a little after last week's rally, but we could be prone to more rally attempts ahead of winter. There is some cooler weather coming," a Chicago-based analyst said.
Euro Coal-Prices drift lower, track fall in oil
LONDON, Oct 17 (Reuters) - Prompt physical coal prices weakened on Monday as slower business and a weaker oil market took their toll.
"It has been sold down today together with the wider energy complex," a European coal trader said. "There's not been much interest."
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