China PMI link to commodity imports breaks down
--Clyde Russell is a Reuters market analyst. The views expressed are his own--
LAUNCESTON, Australia, June 21 (Reuters) - Is there still a point at looking China's Purchasing Managers' Indexes as gauges of commodity demand, given the apparent breakdown between the indicators and imports of oil, iron ore and copper?
The HSBC flash PMI did nothing to soothe investor nerves about a hard landing in China, falling to a seven-month low of 48.1 in June from May's final reading of 48.4.
GLOBAL MARKETS-Asia stocks fall as US data darkens global outlook
SINGAPORE, June 22 (Reuters) - Asian shares fell and the safe-haven dollar hovered near its highest in a week-and-a-half after weak manufacturing data from the United States, Europe and China heightened fears over the outlook for global growth.
A long-expected downgrade to the credit ratings of 15 of the world's biggest banks by ratings agency Moody's added to the gloom, which also weighed on commodities and currencies such as the Australian dollar that are linked to resource demand.
COMMODITIES-Slammed by economic data; biggest drop in 2012
NEW YORK, June 21 (Reuters) - Commodities crumbled for a second day in their biggest sell-off this year, with oil, corn and copper tumbling by 3 percent or more after new global economic data darkened the demand outlook for raw materials.
"It is a toxic combination of negative factors," said Eugen Weinberg, head of commodities research at Commerzbank.
Oil-Oil falls below $90 for first time since Dec 2010
NEW YORK, June 21 (Reuters) - Brent crude oil slid nearly 4 percent in heavy trading, dropping below $90 a barrel for the first time in 18 months as weak economic data from China, the United States and Europe pointed to prospects for slower oil demand.
"Supply is outstripping demand and whatever other data you see out there won't change that," said Dominick Chrichella, senior partner at the Energy Management Institute in New York.
NATURAL GAS-US natgas futures trim gains, still end up on stocks data
NEW YORK, June 21 (Reuters) - U.S. natural gas futures trimmed early gains but still ended higher after the government reported a weekly inventory build slightly below market expectations.
"Today's EIA report was bullish from the perspective that the injection was below the consensus level and bullish when compared to last year and the five-year average for the same week," Energy Management Institute's Dominick Chirichella said.
EURO COAL-Rupee record low may hit Indian buying
LONDON, June 21 (Reuters) - Prompt physical coal prices crept higher but the overall outlook remained grim as little fresh spot buying is expected to emerge before autumn, traders and utilities said.
"In contrast to the consensus, which is that prices will soon rebound, we expect the price of the European coal benchmark to fall from $86 to around $70 per tonne by the end of this year and remain weak at least through 2013," UK-based consultancy Capital Economics said in a research note.
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