Wednesday, November 9, 2011

20111109 1143 Global Market & Commodities Related News.

GLOBAL MARKETS-Asian shares rise as concerns over Italy ease
TOKYO, Nov 9 (Reuters) - Asian shares rose and the euro steadied on Wednesday after Italian Prime Minister Silvio Berlusconi said he would resign, raising hopes the debt-ridden country would proceed with reforms to contain the euro zone's sovereign debt crisis from spreading.
"There will be a knee-jerk reaction to the news of Berlusconi resigning. But it is unclear who has enough political support to take his position and make real reforms in Italy," said Yumi Nishimura, senior technical analyst at Daiwa Securities.

COMMODITIES-US crude up for 5th day; gold at 7-week high
NEW YORK, Nov 8 (Reuters) - U.S. oil prices jumped a fifth straight day on Tuesday and most other commodities rose too as Italian Prime Minister Silvio Berlusconi's resignation gave hope for a clearer path to solving the euro zone debt crisis.
"There are several factors at play. Some are offsetting each other, but the general trend is to the upside," said Carsten Fritsch, energy analyst at Commerzbank in Frankfurt.

China’s Inflation Eases to 5-Month Low (Bloomberg)
China’s inflation cooled to the slowest pace in five months as gains in food costs moderated, giving policy makers more room to support economic growth as Europe’s debt crisis threatens exports. Consumer prices rose 5.5 percent in October from a year earlier, the statistics bureau said today. That matched the median forecast in a Bloomberg News survey and compared with a 6.1 percent gain in September. Producer prices rose 5 percent last month, less than any of 24 analysts’ forecasts. Moderating inflation may enable Premier Wen Jiabao to loosen fiscal and monetary policies as companies complain of a credit squeeze, the property market cools and a likely recession in the euro area threatens exports. Wen said consumer prices have shown an “obvious decrease” since October, the Xinhua news agency reported last night, citing comments to students in Russia.

Oil up as Italy's PM to resign, Brent slips vs WTI
NEW YORK, Nov 8 (Reuters) - Oil prices rose on Tuesday after volatile trading as news that Italy's Prime Minister Silvio Berlusconi is to resign following approval of a new budget deal sparked a late-session rally.
"This buying rotation back and forth within the complex is typical of a valid bull move and we feel that the recent expansion in Brent premium will be contained to about the $20 a barrel area," Jim Ritterbusch, president at Ritterbusch & Associates, said in a note.

POLL-US crude stocks seen up on higher imports
Nov 8 (Reuters) - U.S. crude oil inventories likely rose for a third straight week due to higher imports while distillate stockpiles were seen falling, an expanded Reuters poll of analysts showed on Tuesday.
On average, crude stockpiles were forecast up 400,000 barrels for the week ended Nov. 4, the poll of 10 analysts showed. Six of the analysts called for a stock build. One expected an unchanged level from the previous week, and three  projected a drawdown, citing a small drop in imports.

OPEC raises oil demand view, says risk to downside
LONDON/VIENNA,  Nov 8 (Reuters) - Oil producer group OPEC is investing in new supplies to meet rising consumption, even as it sees the risk to the demand outlook as being on the downside because of Europe's sovereign debt crisis and a slowing global economy.
The Organization of the Petroleum Exporting Countries in its 2011 World Oil Outlook increased its estimate of supplies, saying the amount of unused oil production that the 12-member group holds in reserve in case of supply shocks would double by 2015.

Natural gas ends up, weather limits gains
NEW YORK, Nov 8 (Reuters) - U.S. natural gas futures ended higher on Tuesday, underpinned by expectations for a smaller weekly inventory build on Thursday and some technical buying after an early test of support held.
"The market is short and may have bounced when prices couldn't break Monday's low ($3.652), and it looks like people are expecting a small inventory build Thursday, but the weather looks like 15 more days of no cold," a Texas trader said.

Euro Coal-Prices rise $1/T, tracking oil
LONDON, Nov 7 (Reuters) - Prompt physical coal prices rose by around $1 per tonne on Monday, in line with a rebound in oil prices on hopes that Europe can contain its debt crisis and on concerns about Iran's nuclear programme.
"Oil was much stronger today -- enough of a rise to pull coal up with it, but that was the only change from Friday," one European coal trader said.

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