Asian shares rose nearly 2 percent while European shares looked set to open higher as a narrow election victory for Greece's pro-bailout parties over radical leftists eased concerns about the debt-laden country leaving the euro zone. U.S. stocks rallied on Friday to close a second straight week of gains on hopes of collective action from global central banks if Sunday's election in Greece triggers market turmoil.
The euro briefly hit a one-month high against the U.S. dollar after Greek parties supporting a bailout won a slim parliamentary majority, allaying fear of an immediate break-up of the currency bloc.
FOREX-Euro hits 1-month high then pares gains on Greek relief
TOKYO, June 18 (Reuters) - The euro briefly hit a one-month high against the U.S. dollar after Greek parties supporting a bailout won a slim parliamentary majority, allaying fear of an immediate break-up of the currency bloc.
While there is scepticism in the market over the euro zone's ability to take effective steps to deal with the debt crisis that is now threatening Spain and Italy, massive speculative bets built against the currency could mean a good chance of further short-covering.
COLUMN-China still key for commodities despite Greek relief
--Clyde Russell is a Reuters columnist. The opinions expressed are his own--
LAUNCESTON, Australia, June 18 (Reuters) - Commodities joined the general relief rally after Greeks voted narrowly to support pro-bailout parties, but any sustained gains will depend on risks abating over Chinese demand and Iranian crude supplies.
While it is undoubtedly positive for Europe and for risk assets that Greece is now far more likely to stay in the euro, it would be a big call to say that the weekend election does much to solve the continent's underlying problems.
Peru's economy grows at slowest pace in two years
LIMA, June 15 (Reuters) - Peru's economy, one of the fastest-growing in Latin America, expanded at its slowest rate in more than two years in April but the central bank said it does not see the need to lower interest rates for the time being.
The region's seventh-largest economy grew by 4.37 percent in April from a year earlier, official data showed on Friday.
U.S. corn rose following the election of a pro-bailout government in Greece, but off early highs as optimism waned slightly that the euro zone would avoid a fresh crisis.
US corn entering pollination as weather threatens
Corn plants in the southern and central areas of the United States are beginning to pollinate, or produce grain, a time when cool, wet weather is needed for the crop, but forecasts are calling for high temperatures and little widespread rain.
Informa raises U.S. corn, soy plantings estimates
Private analytical firm Informa Economics raised its estimate of U.S. 2012 corn plantings to 96.759 million acres (39.2 million hectares), from its previous forecast of 96.124 million, trade sources said Friday.
Zambia Sugar workers end strike with pay deal
A strike over wages at Zambia Sugar , a unit of South Africa's Illovo Sugar , has ended after the company awarded permanent workers a 15 percent pay rise, the sugar producer and a union said on Saturday.
OPEC expects lower oil output in July
OPEC members will reduce the group's output to adhere to its 30 million barrels per day (bpd) output ceiling and the effects should be seen in July, OPEC Secretary-General Abdullah al-Badri told a news briefing on Friday.
Russia oil firms face heavy fines for gas flaring
Russian oil companies are facing fines of hundreds of millions of dollars or more for polluting the atmosphere with excess amounts of flared gas, the newly appointed resources minister said on Saturday.
Oil futures rose to one-week highs after a victory for Greece's pro-bailout political parties revived risk appetite, but prices swiftly came off peaks as focus turned to Europe's other debt-hit economies like Spain and Italy.
Indonesia mining rules hitting ore exports -industry group
Indonesia's new mineral ore export regulations have halted operations at hundreds of small mining companies, costing the country's export industry up to $164 million a month in lost nickel and bauxite sales, a mining industry body said on Friday.
INTERVIEW-China's cooling growth to cap copper demand-Aurubis
Demand for copper from top consumer China is expected to remain soft as the country's growth cools, but strong fundamentals are likely to keep copper prices elevated, Europe's biggest copper producer Aurubis said.
HK bourse agrees to buy London Metal Exchange
The Hong Kong stock exchange agreed to pay 1.4 billion pounds ($2.2 billion) to buy the London Metal Exchange, a British institution and the world's biggest marketplace for industrial metals, underscoring the global shift in manufacturing to Asia.
Indonesia mining rules hitting ore exports -industry group
JAKARTA, June 15 (Reuters) - Indonesia's new mineral ore export regulations have halted operations at hundreds of small mining companies, costing the country's export industry up to $164 million a month in lost nickel and bauxite sales, a mining industry body said on Friday.
Indonesia in May asked all miners to submit plans to build local smelters or to process ore domestically by 2014, when a total ban on raw mineral exports kicks in, or otherwise face an immediate ban on raw ore exports. It also imposed a 20 percent tax on ore exports.
China provinces mull power subsidy to aluminium smelters
HONG KONG, June 15 (Reuters) - China's top aluminium producing province of Henan may subsidise electricity used by loss-making smelters in a bid to spur local growth, a tactic other provinces could adopt, helping to keep production strong and limiting imports.
Electricity makes up 40 percent of production costs and the bulk of aluminium smelters in China, the world's top producer and consumer of aluminium, use around 14,000 kilowatts to produce each tonne of the metal.
Japan Q3 aluminium premiums at record high around $200-$210-sources
TOKYO, June 18 (Reuters) - Japanese aluminium buyers, the world's biggest importers of the metal, locked up third-quarter supply deals mostly at a physical premium of $200-$210 per tonne, a record high, after global smelters cut output, four sources directly involved in the talks said.
The premiums for July-September, which act as a benchmark for Asia, represent a jump of up to 70 percent from the $121-122 paid over the London Metal Exchange cash price in the current quarter, the steepest-ever quarter-on-quarter rise.
European copper premiums seen at $60-$70 this year -traders
BRUSSELS, June 15 (Reuters) - Copper premiums in Europe are likely to stabilise at around $60-$70 a tonne for the rest of the year, as China is expected to import less material and as supply tightness eases, trading sources said.
In March, European copper premiums more than doubled from levels in early 2012, to above $90 a tonne, as consumers scrambled for material in a market tightened by a lack of available supply from producers.
China's cooling growth to cap copper demand-Aurubis
BRUSSELS, June 15 (Reuters) - Demand for copper from top consumer China is expected to remain soft as the country's growth cools, but strong fundamentals are likely to keep copper prices elevated, Europe's biggest copper producer Aurubis said.
Volker Pawlitzki, Vice President for commercial recycling at Aurubis said softer growth rates in China were to be expected, and the country's demand for raw materials such as copper is unlikely to be as strong as in previous years.
JP Morgan looks to trade physical iron ore, coal
LONDON, June 15 (Reuters) - JP Morgan is looking to trade physical iron ore and coking coal and expand its activity in physical steel, an executive at the bank said this week, following other major financial players that have moved into these markets.
The U.S. bank has been an active trader of steel and iron ore derivatives since late 2008, mainly on its customers' behalf. It could soon join a trend that has included Deutsche Bank and Macquarie Bank Limited .
Tokyo Steel cuts July prices, demand remains weak
TOKYO, June 18 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steel maker, said on Monday it would cut prices of its product for delivery in July by up to 9 percent to reflect sluggish demand.
It will cut prices of H-shaped beams, its major product, by 9 percent, or 8,000 yen, to 65,000 yen per tonne.
Copper rose to touch a near three-week high after pro-bailout parties in Greece won a slim parliamentary majority to avert an immediate euro zone crisis, but traders expect the relief rally to be short-lived as debt concern lingers.
Gold fell for the first time in seven sessions as the risk of a Greek exit from the euro zone subsided after parties backing a bailout for the country won an election, denting the metal's safe-haven appeal.
METALS-Copper touched near 3-week high on Greek vote
SHANGHAI, June 18 (Reuters) - Copper rose to touch a near three-week high after pro-bailout parties in Greece won a slim parliamentary majority to avert an immediate euro zone crisis, but traders expect the relief rally to be short-lived as debt concern lingers.
The euro jumped to a one-month high and Asian shares also rose on Monday as the election results buoyed appetite for riskier assets. A victory for the leftists would have led to a Greek exit from the euro zone, plunging the single currency bloc into chaos.
PRECIOUS-Gold snaps 6-day winning streak after Greek vote
SINGAPORE, June 18 (Reuters) - Gold fell for the first time in seven sessions as the risk of a Greek exit from the euro zone subsided after parties backing a bailout for the country won an election, denting the metal's safe-haven appeal.
The initial vote results drew expressions of relief from the Group of Seven industrialised economies, who said it was in "all our interests" for Greece to stay in the euro while respecting its international bailout commitments.
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