GLOBAL MARKETS-Stocks, euro subdued before summit, ECB decision
TOKYO, Dec 7 (Reuters) - Asian shares and the euro inched up on Wednesday on hopes that warnings of mass credit rating downgrades will push European leaders into coming up with a convincing framework for resolving the euro zone debt crisis at a crucial summit later this week.
"We see scope for some additional short covering between now and the weekend, barring an EU summit failure. One caveat being if the ECB surprises with more aggressive easing on Thursday than the 25-basis-point reduction in the refinancing rate that is generally expected," analysts at BNP Paribas said.
Asia Stocks Gain on Europe Optimism (Source: Bloomberg)
Japanese stock (MXAP) futures and Australian shares rose on speculation European leaders will step up efforts to fight the debt crisis and ward off the threat of credit- rating downgrades to 15 euro nations. American depositary receipts of Sumitomo Mitsui Financial Group Inc. (8316), Japan’s second-biggest publicly traded lender, rose 0.3 percent from the closing price in Tokyo yesterday. Those of Sony Corp. (6758), which depends on Europe for about 20 percent of its sales, climbed 0.2 percent. BHP Billiton Ltd. (BHP), Australia’s No. 1 oil producer, gained 1.2 percent after crude prices climbed to a three-week high yesterday. “There is an expectation in the market that Europe will advance measures to overcome the debt issues,” said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities Inc. “While there’s a sense of expectation in the market, investors still want to see the results of meetings this week of the European Union and European Central Bank.”
COMMODITIES-Up on thin volume; oil rises on euro summit hopes
NEW YORK, Dec 6 (Reuters) - Commodities ended mostly steady on Tuesday, with oil providing broad support on hopes that a European Union summit later this week would produce a more workable agreement for the region's debt crisis.
"The cost of not agreeing will be higher than agreeing," Thorbjoern Bak Jensen, an analyst at A/S Global Risk Management Ltd, said, referring to what the summit was likely to produce in terms of euro zone cooperation.
U.S. crude up slightly on big API stock draw
NEW YORK, Dec 6 (Reuters) - U.S. crude oil futures added to gains slightly in post-settlement trading on Tuesday after data from the American Petroleum Institute showed a 5 million barrel crude stocks draw last week, much more than forecast.
On the New York Mercantile Exchange, January crude was up 18 cents at $101.17 a barrel, with the move up stymied by the larger-than-expected build in product stocks. January crude was up 10 cents at $101.09 before the data was released.
NYMEX-Natural gas ends up, weather, supplies limit gains
NEW YORK, Dec 6 (Reuters) - U.S. natural gas futures ended higher on Tuesday for the first time in three sessions, backed by some technical buying after two straight losing sessions and reports of possible well freeze-offs in the Southwest.
"There's a little cold in the South, but we need sustained cold in the East to pull prices up, and I don't see it yet," a Pennsylvania trader said, adding if a broader-based cold wave doesn't show up soon, prices could sink sharply from here.
Euro Coal-Prices dip on stalling oil prices
LONDON, Dec 6 (Reuters) - Physical prompt coal prices fell by a marginal 25-50 U.S. cents on Tuesday as oil prices stalled, with tension in Iran balanced against a broader market fall after Standard and Poor's warned of possible euro zone downgrades.
"Coal is still tracking oil, the euro, equities, but everybody's squaring their books already, not a lot of appetite to do business right now," one European trader said.
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