Bank of Korea Holds Rate for 5th Month (Bloomberg)
The Bank of Korea held off from raising borrowing costs for a fifth straight month as Europe’s deepening debt crisis and slowing domestic growth prompt the central bank to pause its fight against inflation. Governor Kim Choong Soo and his board kept the benchmark seven-day repurchase rate at 3.25 percent, the central bank said in a statement in Seoul today. The decision was predicted by all 17 economists surveyed by Bloomberg News. Kim’s board joins policy makers from China to Indonesia to Australia that have moved to support economic growth by refraining from raising borrowing costs or by lowering them. Asian shares tumbled yesterday as Europe’s debt woes drove Italian bond yields above the 7 percent level at which Greece, Ireland and Portugal sought international bailouts.
China’s Stocks Swing Between Gains, Losses Before Future Share Offerings (Bloomberg)
China’s stocks swung between gains and losses as speculation the government may ease monetary policy countered concern initial public offerings will lure funds away from existing equities. China Shenhua Energy Co., the country’s biggest coal producer, and Yanzhou Coal Mining Co. advanced after the Shanghai Securities News said the government will encourage mergers in the industry. Sinochem Corp. said it plans to raise as much as 35 billion yuan ($5.5 billion) in an initial public offering to fund an oil refinery project, in what would be China’s sixth-biggest IPO. The Shanghai Composite Index added 0.22, or less than 0.1 percent, to 2,479.76 as of 10:24 a.m. local time, after falling 0.1 percent. The gauge has lost 1.9 percent this week. The CSI 300 Index (SHSZ300) rose less than 0.1 percent to 2,700.48 today. The Bloomberg China-US 55 Index climbed 1 percent, the most in a week, to 100.89 at the close of trading in New York.
Europe Must ‘Move Quickly’ to Stability: Geithner (Bloomberg)
U.S Treasury Secretary Timothy F. Geithner said Europe remains the “central challenge” to global growth and must “move quickly” to restore financial stability. Geithner, who is in Honolulu attending the 21-member Asia- Pacific Economic Cooperation conference, said in prepared remarks that the APEC countries are all directly affected by the Eurozone crisis and he encouraged them “to take steps to strengthen growth in the face of these pressures from Europe.” European finance ministers earlier this week failed to bridge divisions over the European Stability Mechanism, a permanent rescue fund aimed at stemming the growing crisis over sovereign debt facing countries like Greece and Italy. The world economy is in a “dangerous phase,” IMF Managing Director Christine Lagarde said this week.
GLOBAL MARKETS-Asian shares stage modest rebound, euro steady
SINGAPORE, Nov 11 (Reuters) - Asian shares rebounded modestly on Friday and the euro clung to tentative gains, after brighter corporate news lifted U.S. stocks and debt-ladened Italy was able to fund itself at a bond auction.
"Italy's funding vulnerability presents a serious risk to the global financial system and forces euro zone leaders to grapple with a lose/lose dilemma," wrote RBS macro credit analysts Edward Marrinan and Edward Young in a note.
COMMODITIES-Oil rebounds as euro recovers; other commods down
NEW YORK, Nov 10 (Reuters) - Oil prices rose on Thursday, rebounding after a one-day decline, but metals and crops slumped again on worries about the euro zone despite political progress in Italy after a change in government.
"I am a little surprised that after the beating we took (Wednesday) that we continue to do this," said Jack Scoville, an agricultural markets analyst at The Price Group in Chicago.
Crude jumps on Europe moves, data from US, China
NEW YORK, Nov 10 (Reuters) - Crude oil futures rebounded on Thursday, as investors saw some progress in Italy's efforts to solve its debt problems and U.S. data showed a slight improvement in the economy, beefing up appetite for risk.
"The jobless claims (data) helps us with our recovery hopes as the EU still tries to find answers to avoid another failure," said Carl Larry, president of Oil Outlooks LLC in New York.
Bad weather shutters Mexico's three main oil ports
MEXICO CITY, Nov 10 (Reuters) - Mexico's three main oil exporting ports remained closed on Thursday afternoon due to high winds and waves caused by a cold front, the government said.
Waves of 16 to 19 feet (4.9 to 5.8 meters) and winds up to 56 mph (90 kph) closed Coatzacoalcos port, one of Mexico's three main oil-exporting ports.
Natural gas ends down, storage climbs to near record
NEW YORK, Nov 10 (Reuters) - U.S. natural gas futures ended down slightly on Thursday in a seesaw session, as a bearish weekly inventory report that showed stocks near record-high levels offset early buying on slightly cooler forecasts.
"The weather turned a little colder overnight, so they tried to take it up early, but the (EIA inventory build) overwhelmed that, and we're still on track for at least two more builds," a Massachusetts-based trader said.
Euro Coal-Prices dip $1 despite oil, euro rise
LONDON, Nov 10 (Reuters) - South African prompt physical coal prices fell by just over $1.00 a tonne on Thursday, despite a rebound in oil prices, the euro and equities yet activity was limited.
"Macro news and physical coal are in alignment, prices are moving together but there's no activity in coal in Europe or Asia," one major European trader said.
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