Asia Can Withstand Europe Shocks: World Bank (Bloomberg)
Most Asian nations have room to use fiscal stimulus to protect their economies from an escalation in the European debt crisis that may have “substantial” spillovers in the region, the World Bank said. Developing East Asia, which excludes Japan, Hong Kong, Taiwan, South Korea, Singapore and India, will expand 7.8 percent in 2012 after growing 8.2 percent this year, the World Bank said in the semiannual East Asia and Pacific Economic Update report today. Asian policy makers have shifted their focus to shielding growth, rather than stemming inflation, as Europe’s debt woes and a struggling U.S. economy increase the risk of another global recession. Australia and Indonesia have cut interest rates this month, while the Philippines in October unveiled a fiscal stimulus package to spur the economy.
GLOBAL MARKETS-Asian shares fall on U.S., European debt fears
SINGAPORE, Nov 22 (Reuters) - Asian shares fell on Tuesday as fears about the ability of politicians on either side of the Atlantic to tackle huge debt burdens sapped investors' confidence in riskier assets.
"The S&P index has broken sharply lower and looks technically pretty dire, despite more OK data as the Chicago Fed index bounced slightly and the overhang of unsold homes dipped back to a lower but still high 8 months," said Kit Juckes, head of foreign exchange research at Societe General.
COMMODITIES-Debt fears kick metals and grains lower
NEW YORK, Nov 21 (Reuters) - Gold dropped more than 2 percent while copper tumbled nearly 3 percent and silver sank 4 percent on Monday, as mounting fears about debt in Europe and the United States hit the commodity complex.
"Every time there is a sudden sell-off in equity markets, people have to raise money where they can, and gold is the most liquid asset," said Adrian Day, president of Adrian Day Asset Management, which manages $160 million in assets.
Oil falls on global growth concerns, debt fears
NEW YORK, Nov 21 (Reuters) - Oil prices fell on Monday in volatile trading on fears that persistent debt problems in Europe and the United States and governments' inability to tackle them will stunt global economic growth and curb demand for petroleum.
"Concerns about U.S. debt have added to risk aversion," said Eugen Weinberg, head of global commodities research at Commerzbank in Frankfurt.
Natgas ends up 2.5 pct, cooler forecasts lift
NEW YORK, Nov 21 (Reuters) - U.S. natural gas futures rose 2.5 percent on Monday, as traders blamed updated weather forecasts calling for cooler temperatures in the coming weeks after a long stretch of mild, autumn weather curbed recent heating loads.
"The main feature of the natural gas market today was the downgrading of the forward weather forecast by several private weather forecasters who are now projecting some cold temperatures in about week or so," said Energy Management Institute's Dominick Chirichella.
Euro Coal-Prices fall $1/T with oil, equities
LONDON, Nov 21 (Reuters) - Prompt physical coal prices dropped by around $1.00 a tonne on Monday in line with a slide in oil and equities as fears of out-of-control government debt in the U.S. and Europe hit financial markets.
"Nobody wants to do anything, everybody is delaying making a decision in case it's the wrong one," one major European trader said.
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