GLOBAL MARKETS-Stocks, commodities up on Europe, Caterpillar
NEW YORK, Oct 24 (Reuters) - Global stocks hit a seven-week high on Monday and commodities rallied on optimism European leaders were moving closer to resolving the region's debt crisis as strong earnings from Caterpillar boosted investor sentiment.
"Investors are pricing in the fact that the worst will be avoided with the conclusion of Wednesday's EU summit," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.
Asian Stocks Swing Between Gains, Losses Ahead of European Crisis Summit
Asian stocks swung between gains and losses as investors awaited the results of a European summit tomorrow where leaders are expected to hammer out details on enhancing the region’s bailout fund. Esprit Holdings Ltd. (330), a clothier that gets 79 percent of its revenue in Europe, lost 2.8 percent in Hong Kong. NGK Insulators Ltd. plunged 23 percent after a report the maker of industrial ceramics asked customers not to use some of its batteries after a fire. Komatsu Ltd. (6301), the world’s second-biggest construction machinery maker, rose 3.5 percent after rival Caterpillar Inc. (CAT)’s posted earnings that beat estimates. Cnooc Ltd. (883), China’s largest offshore energy explorer, rose 4.4 percent in Hong Kong after crude prices gained.
The MSCI Asia Pacific Index rose 0.1 percent to 119.24 as of 12:33 p.m. in Tokyo after falling as much as 0.2 percent. About the same number of stocks rose as fell on the index, with six of the 10 groups advancing. German Chancellor Angela Merkel and fellow European leaders will meet in Brussels tomorrow for a second summit in four days to find ways to enhance the firepower of a regional rescue fund.
China’s Stocks Rise, Extending Biggest 2-Week Gain; Vanke Jumps on Profit (Bloomberg)
China’s stocks rose, extending the biggest gain in almost two weeks, as a jump in profit for China Vanke Co., the nation’s biggest developer, eased concerns the slowing economy will spur an earnings collapse. Beijing BDStar Navigation Co. led gains among satellite navigation system producers after Xinhua News Agency reported about 1 million trucks will be required to install the systems. Vanke rose 1 percent after third-quarter profit surged 32 percent. Jiangxi Copper Co. had its biggest two-day gain in eight months on higher commodity prices. Pang Da Automobile Trade Co. fell 1.9 percent after Swedish Automobile NV rejected the company’s bid to acquire Saab Automobile. The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, gained 16.45 points, or 0.7 percent, to 2,386.79 at the 11:30 a.m. local-time break. The CSI 300 Index (SHSZ300) rose 0.9 percent to 2,600.27.
COMMODITIES-Copper, oil surge as Europe, China drive rally
NEW YORK, Oct 24 (Reuters) - Copper recorded its biggest jump in nearly three years on Monday and U.S. oil rose above $90 for the first time since August after European leaders achieved some progress in talks to fix the region's finances.
"It looks to me like commodities in general have made a bottom, and are going to go higher ... the worst is in the past," said Michael K. Smith, president of T & K Futures and Options Inc in Port St. Lucie, Florida.
US crude surges, outpacing Brent in spread trade
NEW YORK, Oct 24 (Reuters) - U.S. crude surged to its highest level in more than two months on Monday, outpacing gains in Brent, as volatile trade in key spreads stole the limelight from upbeat Chinese data and optimism over the euro zone.
"I think you have a pretty good short position starting to unwind in WTI," said Richard Ilczyszyn, senior market strategist of MF Global in Chicago, adding satellite images had shown a 2 percent drawdown in inventories at the Cushing, Oklahoma, delivery point for the New York Mercantile Exchange's futures contract.
12-month natural gas strip hits nine-year low
NEW YORK, Oct 24 (Reuters) - The average of the first 12 months of New York Mercantile Exchange natural gas futures contracts slid to its lowest in nine years on Monday as growing supplies and moderate weather weighed on the complex.
The 12-month futures strip fell 2.3 cents to settle at $3.923 per million British thermal units, the lowest strip settle since Nov. 15, 2002, when the average closed at $3.926, Reuters data showed.
Euro Coal-Prices stable in low liquidity
LONDON, Oct 24 (Reuters) - Prompt physical coal prices remained stable on Monday, little changed from the end of last week, with strong Asian demand providing price support, while weak sentiment in Europe acted as a brake on price rises.
"There is still some length in the system, but no confidence in significant price rises, so I'd say it's only a matter of time before the length is sold off and shorts try to benefit from this situation on the financial market," one coal trader said.
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