Asian shares slid, spawning declines in other risk assets, as deepening political turmoil in the euro zone fuelled concerns about global growth and a huge loss from JPMorgan added to jittery sentiment. U.S. stock index futures fell sharply on Thursday evening as JPMorgan Chase & Co stunned investors with news that its chief investment officer had incurred "significant mark-to-market losses" that it said could "easily get worse."
China Industrial Output, Inflation Boost Easing Odds
China’s industrial production grew the least since 2009 in April, retail sales rose less than estimated and inflation was below target, boosting speculation Premier Wen Jiabao will take steps to stimulate the economy. Output increased 9.3 percent from a year earlier, lower than all 32 estimates in a Bloomberg News survey and the biggest negative surprise in two years, data compiled by Bloomberg show. Consumer prices rose 3.4 percent from a year earlier, the National Bureau of Statistics said today, staying below the annual goal for the third month. The data show China’s slowdown is deepening after Wen’s campaign to rein in property and consumer prices reduced economic growth last quarter to the least in almost three years. India’s March industrial production unexpectedly contracted and Japan’s central bank pledged to provide emergency liquidity if needed as Europe’s debt woes sap global confidence.
“This set of data will definitely force the government’s hand to ease,” said Yao Wei, China economist for Societe Generale SA in Hong Kong. A cut in the reserve ratio may happen “any minute now,” and “more fiscal easing is also highly likely,” Yao said. China’s retail sales in April gained 14.1 percent from a year earlier, compared with estimates of 15.1 percent and March’s 15.2 percent increase. Fixed-asset investment excluding rural households rose 20.2 percent in the first four months of the year, the lowest for the period since 2001, compared with forecasts for a 20.5 percent gain.
The euro hit a 3-1/2-month low as news of JPMorgan's trading losses from a failed hedging strategy spooked investors and lent support to the safe haven dollar, with stop-loss selling adding to the euro's drop.
FOREX-Euro steady near 3-1/2 mth low; Aussie eyes China data
SINGAPORE, May 11 (Reuters) - The euro held steady near a recent 3-1/2 month low on Friday, with the single currency still seen vulnerable due to ongoing political deadlock in Greece that has left investors fretting about the risk of the country exiting the euro zone.
"The issue is no longer whether Greece will default or not, but whether or not it will leave (the euro zone)," said Daisuke Karakama, market economist for Mizuho Corporate Bank in Tokyo.
Chicago corn languished near a 14-month low , after the U.S. government predicted stocks of the grain would climb this autumn to their highest in seven years, while wheat was little changed following a firm close in the last session.
China to issue 1 mln T of cotton import quotas -traders
China, the world's top cotton consumer, will soon issue about 1 million tonnes of extra cotton import quotas to help textile mills buy cheaper overseas cotton to cut costs, traders said on Friday.
On verge of 22-hour grain trading, an era passes
The ka-chunk, ka-chunk of punch clocks echoed across the silent trading floor at the Chicago Board of Trade, as a tiny group of traders gathered at the soybean oil pit for a ritual as routine as the seasons -- the U.S. government's monthly crop report.
Rebel union workers strike at Argentine grains port
A group of port workers launched a pay strike on Thursday at Argentina's biggest grains hub, Rosario, even though labor leaders suspended the measure for 48 hours to keep negotiating, a union official said.
Brazil coffee crop seen at record 50.45 mln bags-govt
Brazil's will produce a record 50.45 million 60-kg bags of coffee in the 2012/2013 season as producers in the world's largest coffee exporter planted more trees in response to strong prices, the agriculture ministry said on Thursday.
Brazil raises soy crop view after aggressive cuts
The soybean forecast from Brazil's agriculture ministry on Thursday bounced back by more than a million tonnes, after the government overshot in April when it slashed more than 3 million tonnes from an earlier estimate of the drought parched crop.
Brazil's early 2012/13 sugar output down 34 pct
Early sugar output from Brazil's main center-south cane belt fell 34 percent from a year ago, as the region struggled to recover from the first drop in output in a decade last season, the sugar milling industry association Unica said Thursday.
Brent crude dropped below $112 a barrel, tracking losses in the euro amid a political deadlock in Greece that has renewed worries about the fate of the debt-laden euro zone and clouded the outlook for global oil demand.
OPEC exports to fall in 4 weeks to May 26 -analyst
Seaborne oil exports from OPEC, excluding Angola and Ecuador, will fall by 430,000 barrels per day (bpd) in the four weeks to May 26, an analyst who estimates future shipments said on Thursday.
LME meets to discuss bidders' proposals-sources
LONDON, May 10 (Reuters) - The London Metal Exchange (LME) was holding an emergency meeting with its board members on Thursday to discuss proposals from a short list of bidders vying to buy the 135-year-old exchange and could make recommendations to shareholders soon, sources familiar with the matter said.
The LME, the world's largest metals marketplace, received a second round of bidders' proposals on Monday, and said the board would consider them before giving shareholders more information.
COLUMN-Chinese copper imports still too strong
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, May 10 (Reuters) - China's copper imports dropped 19 percent in April, generating the all-too-predictable spate of headlines about slumping demand and excess stocks in the world's largest consumer of the red metal.
And true, at 375,258 tonnes aggregate imports of refined metal, alloy, anode and products were the lowest monthly print since August last year.
Copper prices eased a touch on Friday, reversing gains from the previous session ahead of the release of China industrial output data that is expected to shed light on the health of the economy as investors worry about slower growth.
Gold slipped more than half a percent, tracking equities lower, as investors failed to shake off worries about Europe's debt crisis and its impact on global economic growth.
China copper, ore imports slump as high stocks bite
SHANGHAI, May 10 (Reuters) - China's copper and iron ore imports slumped to multi-month lows in April as bulging stocks and muted demand prompted shippers to cut orders, while unexpectedly weak export numbers sparked doubt over whether the slowdown in the world's No.2 economy has bottomed out.
However, commodities investors appeared unfazed by the disappointing data, with some analysts saying the weak numbers could serve as a wake up call to Beijing to further ease monetary policy - which would boost prices in the second half.
China April iron ore imports falls 8 pct to six-mth low
SHANGHAI, May 10 (Reuters) - China's iron ore imports slid to a six-month low of 57.69 million tonnes in April, down 8 percent from a month earlier, as the world's top buyer of the commodity cut purchases due to falling steel prices and margins.
Total imports for the first four months stood at 244.6 million tonnes, up 6.5 percent from a year ago, preliminary data from China's customs showed on Thursday. Shipments hit 64.98 million tonnes in February, the highest since January 2011.
METALS-Copper eases as investors eye China data
SINGAPORE, May 11 (Reuters) - Copper prices eased a touch on Friday, reversing gains from the previous session ahead of the release of China industrial output data that is expected to shed light on the health of the economy as investors worry about slower growth.
"With China's economy slowing down and the investment-intensive growth mode being phased out, sentiment on copper is weakening," said Zhu Bin, an analyst at Nanhua Futures in the eastern Chinese city of Hangzhou.
PRECIOUS-Gold heads for worst weekly fall since March
SINGAPORE, May 11 (Reuters) - Gold slipped more than half a percent on Friday, tracking equities lower, as investors failed to shake off worries about Europe's debt crisis and its impact on global economic growth.
"We are still uncertain about what's happening out of the euro zone. For now, I think gold will trade largely like a risk asset and probably track equities as well. Support level is about $1,500," said Lynette Tan, an analyst with Phillip Futures in Singapore.
Baltic sea index drops on weak Chinese demand
May 10 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, fell on Thursday for a second day as weak Chinese demand weighed on rates for dry bulk vessels.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, fell 10 points or 0.87 percent to 1,146 points.
Asia Dry Bulk-Rates to hover near 3-wk lows on oversupply
SINGAPORE, May 10 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected to hover near three-week lows over the next week, pressured by an abundance of vessels and limited Chinese activity, ship brokers said on Thursday.
The rate for panamax vessels traveling via the transpacific route dropped to a three-week low of $9,795 a day on Wednesday from $11,581 last week as ample ship supplies outweighed an increase in demand for Indonesian exports.
No comments:
Post a Comment