GLOBAL MARKETS-Asia shares fall steeply on worries over Spain banks, growth
TOKYO, May 18 (Reuters) - Asian shares fell steeply on Friday after more signs emerged of growing instability among Spanish banks and political turmoil in Greece, with the latest sluggish economic data from the United States adding to the list of risks for investors.
"The shrinking pool of available higher-rated assets suitable for central bank reserves suggests that the EUR's weighting in reserves is likely to be questioned," it said.
That would imply that the motivation to buy the euro for purposes of diversification is declining, leaving the single currency increasingly vulnerable, Morgan Stanley said.
COMMODITIES-Gold, wheat rally; Europe fears hit other markets
NEW YORK, May 17 (Reuters) - Gold on Thursday posted its biggest daily gain since January, recouping most of this week's losses, and wheat extended its rally as buyers returned to some commodity markets cheapened by worries over Europe and the world economy.
"If anything, things seem to be getting worse (in Europe), as the focus now seems to be reverting away from the political deadlock in Greece and towards the deteriorating rate situation in Spain," said INTL FC Stone analyst Ed Meir.
OIL-Oil skids on euro zone woes, weak economic data
NEW YORK, May 17 (Reuters) - Brent crude oil slumped more than 2 percent on Thursday to end at the lowest level since December, as investors avoided risky assets due to mounting fears that turmoil in Greece could spread to other stressed euro zone economies.
"The oil market, like other risky assets, is within the grips of uncertainty surrounding the euro zone," said Harry Tchilinguirian, BNP Paribas head of commodities strategy.
OPEC exports to fall in 4 weeks to June 2-analyst
LONDON, May 17 (Reuters) - Seaborne oil exports from OPEC, excluding Angola and Ecuador, will fall by 420,000 barrels per day (bpd) in the four weeks to June 2, an analyst who estimates future shipments said on Thursday.
Exports will reach 23.88 million bpd on average, up from 24.30 million bpd in the four weeks to May 5, UK consultancy Oil Movements said in its latest weekly estimate.
NATURAL GAS-US natgas retreats from 3-mth high, ends down
NEW YORK, May 17 (Reuters) - Front-month U.S. natural gas futures ended lower on Thursday, retreating from a three-month high hit overnight, under pressure from profit taking on recent gains and a government report showing a weekly inventory build above market expectations.
"I view today's downward move as nothing other than a correction of the market moving closer to its true value trading area. I still expect natural gas to trend higher over time, but ... we will need to see more significant production cuts to bring the market back to a more manageable balance," Energy Management Institute's Dominick Chirichella said in a report.
EURO COAL-Stable despite oil fall
LONDON, May 17 (Reuters) - European prompt physical coal prices were little changed on Thursday, hovering at around $88.00 a tonne, despite oil's fall to its lowest level since the start of the year, traders said.
"It's all dependent upon macros, and there's not that much hope of improvement in the Euro zone economies or that Asia will take all the surplus coal," one trader said.
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