GLOBAL MARKETS-Stocks, euro decline as EU summit hopes slip
NEW YORK, Oct 19 (Reuters) - U.S. stocks fell and the euro edged lower on Wednesday after optimism faded that European leaders will make substantial progress on resolving the euro zone debt crisis at their summit meeting this weekend.
"At the end of the day, the market is nervous, waiting to see anything substantial coming out of the summit," said Tom Fitzpatrick, chief technical strategist at CitiFX in New York. "We are getting to a point that there have been so many false promises so they really need to deliver something big."
Asia Stocks Headed for Lowest in a Week on Europe Debt Wrangling (Bloomberg)
Asian stocks slid, with the benchmark regional index headed to its lowest close in more than a week, amid uncertainty about European bailout-fund talks and as U.S. companies grew more pessimistic about the outlook for the world’s largest economy. Sony Corp. (6758), Japan’s No. 1 exporter of consumer electronics that gets 21 percent of its sales in Europe, fell 1.2 percent. BHP Billion Ltd., the world’s biggest mining company, dropped 2.1 percent as commodity prices dropped. Newcrest Mining Ltd. (NCM), Australia’s largest gold mining company, sank 5.7 percent after saying gold output fell 13 percent from a year earlier in the three months to Sept. 30. The MSCI Asia Pacific Index sank 1.2 percent to 115.98 as of 10:54 a.m. in Tokyo, with more than two stocks falling for each that gained.
COMMODITIES-Copper dives on Europe; oil, soybeans follow
NEW YORK, Oct 19 (Reuters) - Copper slid on Wednesday, closing with its biggest loss in three weeks, and crude oil prices tumbled too on worries that European leaders might fail to contain a worsening debt crisis.
"We are seesawing with global sentiment... the market is completely preoccupied by the whole euro zone story," said Andrey Kryuchenkov, commodities analyst with Moscow-based VTB Capital. "We will have this uncertainty until the Oct 23 crisis summit, when we expect they will announce some kind of coherent plan."
Crude sinks as Europe woes outweigh US stock draw
NEW YORK, Oct 19 (Reuters) - Crude oil futures slumped more than 2 percent on Wednesday, with an afternoon sell-off driven by concern that European leaders could fail to contain a worsening euro zone debt crisis.
"The (oil) market is still totally dominated by Europe (and) talks that plans for the bailout package have stalled again kicked us right off the cliff," said Mark Anderle, trader at TAC Energy in Dallas, Texas.
Natural gas ends up, short cover, weather back gains
NEW YORK, Oct 19 (Reuters) - U.S. natural gas futures ended higher on Wednesday, driven by short-covering after two straight losing sessions and defying concerns about steadily growing supplies ahead of Thursday's inventory report.
"I think this (move up) was just a little short-covering, but (excess) supply is still the problem, and we need to get some (cold winter) weather early," a Texas trader said, adding prices could sink below $3 if winter does not show up early.
Euro Coal-Prices fall in thin trading
LONDON, Oct 19 (Reuters) - Prompt physical coal prices on Wednesday continued the week's downward trend on a day of minimal activity.
"On the economic front, things aren't going to improve much even if we can avoid a double-dip recession, so that implies a sideways or downward movement as physical demand continues to drop or remains flat, while the supply side of coal looks good as a repeat of last year's floods in Australia is unlikely," one coal trader said.
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