GLOBAL MARKETS-Stocks, euro end up on European deal optimism
NEW YORK, Oct 18 (Reuters) - World stocks and the euro edged higher, while the S&P 500 jumped 2 percent on Tuesday following another report on deals to bolster the euro zone's rescue fund.
Brent crude oil prices also rebounded to end higher after touching a one-week low.
Asian Stocks Advance as U.S. Earning Boost Recovery Outlook (Bloomberg)
Asian stocks rose on signs a global economic recovery may be strengthening after Bank of America Corp. swung to a profit and Intel Corp. forecast sales that beat analyst estimates, boosting the earnings outlook for Asia’s companies. Toyota Motor Corp. (7203), the world’s biggest carmaker, rose 0.7 percent. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s largest lender, advanced 1.2 percent, after Bank of America climbed 10 percent in New York. Cnooc Ltd. (883), China’s largest offshore energy explorer, rose 1.8 percent after crude rose to the highest price in more than a month. Suppliers of Apple Inc. (AAPL), fell after the maker of iPhones and iPads posted profit that missed analyst estimates.
“There’s bound to be some residual optimism because of the strong gains in the U.S. on the back of some earnings optimism,” said Will Seddon, who helps oversee more than $300 million at White Funds Management in Sydney. “We’re bound to see some positive momentum in Asian markets, but the risks with the European situation are still very, very high.”
Spain’s Rating Cut to A1 by Moody’s (Bloomberg)
Spain’s credit rating was cut for the third time since June of last year by Moody’s Investors Service as Europe’s debt crisis threatens to engulf the nation. Moody’s yesterday reduced its ranking to its fifth-highest investment grade, cutting it by two levels to A1 from Aa2, with the outlook remaining negative. Standard & Poor’s downgraded Spain on Oct. 14 to its fourth-highest investment grade, and Fitch Ratings cut it to the same level on Oct. 7, the day it also downgraded Italy. Moody’s, in a statement, cited the “continued vulnerability of Spain to market stress” that is driving up the cost of borrowing, as well as weaker growth prospects. “Moody’s is maintaining a negative outlook on Spain’s rating to reflect the downside risks from a potential further escalation of the euro area crisis.” The euro slipped 0.1 percent to $1.3738 at 7 a.m. Tokyo time.
COMMODITIES-Copper, crops fall on China woes; oil jumps
NEW YORK, Oct 18 (Reuters) - Most metals and agricultural commodities fell on Tuesday after major consuming nation China reported slowing economic growth, but oil jumped as much as 2 percent, limiting losses across commodities.
"Their dependence upon U.S. and European purchasing is enormous. If the West shuts down, China shuts down," said Philip Gotthelf, president at Equidex Brokerage Group Inc in Closter, New Jersey.
Oil rises as Wall St buying trumps China concern
NEW YORK, Oct 18 (Reuters) - Brent oil rose on Tuesday, turning higher after hitting a one-week low, as strong bank earnings lifted markets and outweighed pressure from weak Chinese economic data.
"I think this could be an unwind of one of those spreads," he said, adding further support for U.S. crude may be coming from lower inventory levels at the Cushing, Oklahoma delivery point for the U.S. contract.
Argentina to hike biodiesel output by 2015-executive
AVELLANEDA, Argentina, Oct 18 (Reuters) - Argentine biod
Asian gas oil will rely on Europe for support this winter
SINGAPORE, Oct 18 (Reuters) - Asia's gas oil market will look to Europe for support this winter as demand from top buyers India and Indonesia ebbs, weighing on prices during what is normally the product's most profitable months because of its use for heating.
Surging diesel prices in Europe, due to low stocks ahead of winter, are already making it profitable for traders to ship barrels to the West. That may help gas oil cracks, or the profit from processing a barrel of crude into the fuel, recover from a 10-month low below $15 hit last week.
Natural gas ends down for second day, storage weighs
NEW YORK, Oct 18 (Reuters) - U.S. natural gas futures ended lower on Tuesday for a second day, with moderating weather forecasts and expectations for another triple-digit inventory build on Thursday pressuring the complex.
"It looks like the weather warmed up a bit, and people are concerned about the next storage report," a New York trader said, noting expectations Thursday's government inventory report will show the season's third triple-digit build.
Euro Coal-Prices fall further, outlook seen soft
LONDON, Oct 18 (Reuters) - Prompt physical coal prices fell on Tuesday by $1 to $2 a tonne as slow business and a weaker outlook hurt sentiment.
"Liquidity has taken a hit today," one European trader said. "There's still overwhelming supply in South Africa's Richards Bay and not enough buyers in the market to keep things up at the moment."
Gold Advances as Spain Rating Cut by Moody’s Spurs Demand for Haven Assets (Bloomberg)
Gold gained for the first time in three days after Moody’s Investors Service cut Spain’s credit rating, spurring demand for the metal as a haven. Bullion for immediate delivery added 0.4 percent to $1,664.20 an ounce at 9:25 a.m. in Singapore, after dropping 0.4 percent to $1,651.73. December-delivery gold climbed for the first time in three days, gaining as much as 0.9 percent to $1,666.90 an ounce on the Comex in New York. “The fundamentals that support gold’s status as a safe haven have not changed,” Julian Jessop, chief global economist at Capital Economics Ltd., wrote in a report. “Gold’s value does not depend on the creditworthiness of any government or financial institution. We continue to expect the price of gold to top $2,000 as sovereign-debt worries continue to build.”
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