GLOBAL MARKETS-European debt deal ignites rally in stocks, euro
NEW YORK, Oct 27 (Reuters) - A long-awaited plan to staunch the European debt crisis sparked euphoria across financial markets on Thursday, driving up the euro and the price of world stocks and commodities, while thrashing the dollar.
"This is not a magic elixir. It's a very good start and certainly more than people had expected," Bill O'Neill, partner at commodity investment firm LOGIC Advisors, said of the deal.
COMMODITIES-Prices surge as investors toast Europe deal
NEW YORK, Oct 27 (Reuters) - Oil rebounded from a one-day fall to resume a powerful rally from earlier in the week and metals and crops also surged on Thursday as markets rejoiced over Europe's plan to conquer its two-year-old debt crisis.
"This is not a magic elixir. It's a very good start and certainly more than people had expected," Bill O'Neill, partner at commodity investment firm LOGIC Advisors and a commentator on gold, said after bullion prices rose without a break from Friday, finishing up 8 percent over the five days.
China’s Stocks Rise, Extending Best Week in Year, on Profit, U.S. Economy (Bloomberg)
China’s stocks rose, driving the benchmark index to its best weekly gain in a year, after PetroChina Co. reported profit that beat analysts’ estimates and the U.S. economy grew at the fastest pace in a year. PetroChina, China’s biggest oil company, led gains for energy producers after third-quarter net income rose 7.8 percent. Industrial & Commercial Bank of China Ltd., the largest lender, surged for its best five-day rally since November 2010 after reporting a 28 percent jump in profit. Jiangxi Copper Co., the biggest producer of the metal, jumped to a one-month high as commodity prices surged on an improving global economic outlook. “The market sentiment is getting better and investors are not that pessimistic as they were a couple of weeks ago,” said Zhang Qi, an analyst at Haitong Securities Co. in Shanghai. “We’ll see some real actions from the government to ease tightening policies as inflation slows.”
Japan Stocks Advance Second Day as U.S. Growth Fuels Rally After Debt Deal (Bloomberg)
Japanese stocks rose for a second day, pushing the Nikkei 225 (NKY) Stock Average toward its biggest weekly gain in a year, as faster U.S. economic growth fueled investor confidence following yesterday’s breakthrough on a European debt deal. Honda Motor Co. led gains among carmakers, rising 4.6 percent. Mitsubishi UFJ Financial Group Inc., Japan’s biggest lender by market value, advanced for a second day after European leaders yesterday stuck a deal that may help avert a financial crisis. Komatsu Ltd., a maker of construction equipment, jumped 6.2 percent after announcing a share buyback. The Nikkei 225 Stock Average climbed 1.4 percent to 9,048.35 at the 11 a.m. trading break in Tokyo. For the week, the gauge is headed for a 4.3 percent gain, the biggest since the period ended Nov. 5, 2010. The broader Topix index rose 1.5 percent to 774.20. A report that the U.S. economy grew last quarter at the fastest pace in a year helped stocks extend yesterday’s gains.
Oil rallies more than 4 pct on EU rescue deal
NEW YORK, Oct 27 (Reuters) - Crude oil futures rallied more than 4 percent on Thursday, primed by a deal on Greek debt that many analysts said bodes well for resolving the euro zone crisis.
"Given the positive nature of today's GDP report, as well as settling of some European debt concerns, the path has been paved for bullish moves in coming sessions for commodity and equity prices," said Jason Schenker, president of Prestige Economics LLC in Austin, Texas.
Nov natgas expires on weak note, EIA, weather weigh
NEW YORK, Oct 27 (Reuters) - U.S. natural gas futures ended lower on Thursday, with the front-month November contract expiring on a weak note after another big weekly inventory build and ahead of milder weather forecast for next week.
"The (EIA) number was above consensus, and the forecasts went warmer after this cold snap," a Texas trader said, noting cold weather for the next few days should help support prices but strong production was still a problem for the bulls.
Euro Coal-prices rise on European debt relief
LONDON, Oct 27 (Reuters) - European prompt physical coal prices rose on Thursday as markets reacted with relief to the European Union's agreement to tackle the euro zone's sovereign debt crisis.
"Two things are preventing activity from returning to the physical coal market: Firstly, utilities need to burn their stock down, and secondly the market needs to lose its fear of a renewed recession in Europe," one coal trader said.
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