Asian shares edge up, on course for weekly loss
SINGAPORE, Nov 11 (Reuters) - Asian shares rebounded modestly 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.
"It's very difficult to trade these days, what with the binary headlines coming out of Europe," said a Singapore-based credit market trader with an Asian bank.
Asian Stocks Rise on U.S. Jobless Data, Easing Europe Concern (Bloomberg)
Asian stocks rose, rebounding from the biggest decline in seven weeks yesterday, as U.S. jobless claims fell and the selection of a new Greek premier tempered concern Europe’s debt crisis won’t be contained. Sony Corp. (6758), Japan’s biggest exporter of consumer electronics, climbed 2.4 percent. China Petroleum & Chemical Corp. (600028), Asia’s biggest refiner, rose 3.2 percent in Hong Kong after its parent agreed to buy a 30 percent stake in Galp Energia SGPS SA’s Brazil unit. Genting Singapore Plc (GENS) slumped 5.3 percent after Citigroup Inc. lowered its rating to “sell” as the casino-resort operator posted earnings that missed analysts’ estimates. “The U.S. is doing alright,” said Andrew Pease, Sydney- based senior investment strategist for the Asia-Pacific region at Russell Investment Group. “So far the contagion from Europe to the U.S. that everyone has been worried about seems to be fairly limited. That’s a good sign. But Europe is going to get worse before it gets better.”
Spain Economy Stalls as Borrowing Costs Surge (Bloomberg)
Spain’s economy stalled in the third quarter, undermining the country’s efforts to shield itself from the sovereign debt crisis after Spanish and Italian borrowing costs surged to records. Gross domestic product was unchanged from the previous quarter, when it expanded 0.2 percent, the National Statistics Institute said today in an e-mailed statement in Madrid. From a year earlier, the economy expanded 0.8 percent. The Bank of Spain estimated on Oct. 31 that the economy stalled in the third quarter and grew 0.7 percent on the year. The slowdown threatens Spain’s budget-deficit goals, the European Commission said yesterday, meaning the government that emerges from the Nov. 20 general election may have to accelerate spending cuts to prevent the nation becoming the next victim of the debt crisis. The People’s Party, which polls show will win, has pledged to regain Spain’s AAA rating and tame borrowing costs without raising taxes or cutting pensions.
FOREX-Euro stays above 1-month low but seen vulnerable
SINGAPORE, Nov 11 (Reuters) - The euro inched higher and held above its recent one-month low on Friday, but market players were sceptical that it would see a sustained bounce due to uncertainty over whether Italy will make progress on fiscal reforms under new leadership.
The euro has gained some reprieve after a sell-off earlier in the week when Italian 10-year bond yields shot above the 7 percent level that is widely regarded as unsustainable.
U.S. wheat futures stage modest recovery
SYDNEY, Nov 11 (Reuters) - U.S. wheat futures posted modest gains as bargain hunters stepped in after a fall of nearly 4 percent the previous session when investors dumped contracts, spooked by weak U.S. grain exports and the fallout from Europe's debt crisis.
"Basically, people are taking advantage of the sell-off," said Jonathan Barratt, head of Sydney-based Commodity Brokering Services.
Smart traders humbled by cotton market's wild swings
Nov 10 (Reuters) - Global commodity trading houses have long defended their billion-dollar profits -- the subject of ire and envy by farmers, miners and small producers -- as just reward for taking big risks in opaque markets.
This year's gyrations in the cotton market supported that mantra as a "perfect storm" of volatility made losers out of some of the market's smartest traders, sapped profits and toppled a CEO. And the damage may not be over.
Argentine rains could prompt soy area expansion
BUENOS AIRES, Nov 10 (Reuters) - Major world soy supplier Argentina got heavy rains over the last week that could set the stage for a larger-than-expected area to be planted this season, the Buenos Aires Grains Exchange said on Thursday.
The exchange did not boost its soy area estimate but said it might if good weather encourages farmers to devote more land to the crop.
Mexico sugar chamber raises production forecast
MEXICO CITY, Nov 10 (Reuters) - Mexico's sugar production will be about 5.3 million tonnes in the 2011/12 season, up from a previous estimate of 5 million tonnes, helped by higher prices and more sugar being planted, the sugar industry chamber said on Thursday.
Exports in the 2011/12 season, which began in November, will be about the same as last year at around 1.4 million tonnes, the chamber's director, Juan Cortina, told reporters.
Brent steady above $113; eyes euro zone debt
SINGAPORE, Nov 11 (Reuters) - Brent crude was steady above $113 a barrel, after sharp gains in the previous session, as lingering concerns over Europe's debt crisis prompted investors to stay cautious.
"We had some good news yesterday from Italy on their bond sale, but the oil market is trading from headline to headline," said Ben Le Brun, market analyst at OptionsXpress in Sydney. "Right now there's not enough to give investors a clear direction for prices."
Shell, Petronas to improve oil output offshore Malaysia
SINGAPORE, Nov 11 (Reuters) - Royal Dutch Shell and Malaysian state-owned firm Petronas signed an agreement on Friday to improve oil output at fields offshore Sarawak and Sabah.
The improvement may result in an additional 90,000 to 100,000 barrels per day (bpd) of oil production and extend the life of the Baram Delta and North Sabah fields to beyond 2040, Shell said in a statement.
China's Baosteel cuts main product prices for Dec
SHANGHAI, Nov 11 (Reuters) - China's Baoshan Iron & Steel will cut its main product prices for December bookings, the company said on Friday, a move reflecting the weakness in steel demand in the final month of 2011.
The company, also known as Baosteel, plans to slash hot-rolled coil prices by 200 yuan ($32) per tonne and cold-rolled coil prices by 300 yuan per tonne, after it kept its main steel product prices unchanged in November from October.
Japan Q1 aluminium premiums may ease
TOKYO, Nov 10 (Reuters) - Term premiums on aluminium shipments to Japan for January-March will likely ease as domestic demand is slowing after devastating floods in Thailand caused many Japanese firms to curb output of consumer goods using parts made in Thailand, traders said.
Japan consumes around 2 million tonnes per year of aluminium, equivalent to about 5 percent of global demand.
Copper up; Italy, Greece on track to form unity govts
SHANGHAI, Nov 11 (Reuters) - Copper edged up after Italian and Greek politicians moved to form unity governments to champion the measures needed to tackle the euro zone debt crisis, but lingering worries over a global economic slowdown will keep investors cautious.
"We are seeing a technical adjustment today based on the improved sentiment as indicated in the lift in U.S. and European equities. The Italian and Greek political development was encouraging and I believe that world leaders will make sure there will be no defaults by those two countries in the short term," said China Futures Co analyst Yang Jun.
China copper imports strong but bulls beware!: Andy Home
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, Nov 10 (Reuters) - China's copper imports in October were the highest monthly total since May 2010 and confirm that the step-change in September was not a statistical blip.
At 383,507 tonnes aggregate imports of refined copper, copper alloy, copper anode and copper products were marginally up on September's figure and a lot higher than the subdued flows seen in the early part of this year, when China's copper sector was indestocking mode.
China's Oct copper imports edge up; Nov seen firm
HONG KONG, Nov 10 (Reuters) - China's imports of unwrought copper and semi-finished copper products edged up 0.8 percent in October due to steady demand from consumers and investors, and analysts expect shipments to remain firm in November as long as metal prices stay low.
Benchmark three-month London Metal Exchange copper prices have lost more than 25 percent since hitting a record high above $10,000 per tonne in February. Copper was trading around $7,400 per tonne by 0654 GMT, after shedding almost 14 percent over the two months ended October.
China Oct copper imports shine, iron ore suffers
SHANGHAI, Nov 10 (Reuters) - China's October commodities trade data shows the winners and losers from the country's cooling economy -- copper imports rose for the fifth straight month, but a slump in iron ore shipments highlights the risks for raw materials linked to real estate.
The government's resolve to clamp down on the property sector means the steel and cement industries, and associated raw materials such as iron ore and coking coal, will remain mired for at least the next quarter.
METALS-Copper up; Italy, Greece on track to form unity govts
SHANGHAI, Nov 11 (Reuters) - Copper edged up on Friday after Italian and Greek politicians moved to form unity governments to champion the measures needed to tackle the euro zone debt crisis, but lingering worries over a global economic slowdown will keep investors cautious.
Three-month copper on the London Metal Exchange inched up 1 percent to $7,550 a tonne by 0359 GMT, after falling to a two-week low and ending down 2 percent previously. It is headed for a fall of 4.1 percent on the week, its second such loss in a row.
PRECIOUS-Gold steady as Italy fear eases; Europe worries linger
SINGAPORE, Nov 11 (Reuters) - Gold prices traded steady on Friday, following encouraging signs that Italy was making an effort to ease its political turmoil and avert an economic disaster, while investors remain nervous about the unfolding euro zone debt crisis.
The uncertainty in solving the two-year-old debt crisis is likely to support safe haven interest in gold, but a widespread sell-off in response to disastrous news out of the euro zone could sink gold as investors are forced to liquidate their positions to cover losses elsewhere.
Gold steady as Italy fear eases; Europe worries linger
SINGAPORE, Nov 11 (Reuters) - Gold prices traded steady, following encouraging signs that Italy was making an effort to ease its political turmoil and avert an economic disaster, while investors remain nervous about the unfolding euro zone debt crisis.
"The whole situation in Europe still worries people -- Italy bonds, French bonds, euro zone exit," said a Singapore-based trader, adding the danger of liquidation could hit gold in the short term.
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