20120816 1652 Global Markets & Commodities Related...

GLOBAL MARKETS: Asian shares inched higher but gains were limited as investors waited for more clues over the timing and extent of any further stimulus to tackle the euro zone's debt crisis and support global growth. European stock futures pointed to a higher open as expectations for further stimulus measures from central banks to aid global growth persisted after U.S. economic numbers came in mixed and China said its trade outlook had deteriorated. U.S. stocks spent another session in a tight range on Wednesday, with the S&P 500 ending a few points higher and extending a rally that seems to be happening in slow motion. (Reuters)

FOREX: The dollar surged to a one-month high against the yen, extending gains after this week's upbeat U.S. data gave a boost to Treasury yields and cooled expectations of monetary easing by the Federal Reserve. (Reuters)

FOREX-Dollar hits 1-month high vs yen, lifted by rising yields
SINGAPORE, Aug 16 (Reuters) - The dollar surged to a one-month high against the yen, extending gains after this week's upbeat U.S. data gave a boost to Treasury yields and cooled expectations of monetary easing by the Federal Reserve.
"We are seeing increasing signs of stabilisation in the U.S.," said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore.
"The U.S. improvement is in contrast to the persistent weakness elsewhere. So that's dollar positive because (interest) rate spreads move in favour of the dollar," he said, adding that the dollar may rise towards 80 yen in the short term.

Muted U.S. inflation supports more Fed easing(Reuters)
U.S. consumer prices were flat in July for a second straight month and the year-over-year increase was the smallest in more than 1-1/2 years, giving the Federal Reserve room to ease policy further to tackle high unemployment.

China's Wen says economy still under pressure(Reuters)
China's economy faces big headwinds though cooling inflation is giving the government more leeway to manoeuvre monetary policy, Premier Wen Jiabao was quoted by state media as saying on Wednesday.

China's soy imports to dwindle as price rally spooks buyers(Reuters)
China's unrelenting imports of soybean could hit a wall soon as oilseed processors in the world's top buyer cut purchases, with margins being eroded by a drought-driven rally in the United States and domestic price curbs urged by Beijing.

GRAINS: Chicago soybeans slid 0.8 percent, giving up some of the last session's strong gains on slowing demand from importers, stung by a rally in prices caused by the worst drought in the U.S. grain belt in more than half a century. (Reuters)

U.S. crude stocks fall sharply, oil products mixed-EIA(Reuters)
U.S. crude oil stockpiles fell more than expected last week despite a modest rise in crude imports, while inventories of refined products were mixed as plant utilization remained high, government data showed on Wednesday.

OIL: Brent crude held steady, staying near a three-month high above $116 on concerns about disruptions to supply from the Middle East and a steeper-than-expected drawdown in oil stocks in the world's top consumer, the United States. (Reuters)

Supply glut to keep China steel prices low - CISA(Reuters)
China's steel prices, hovering near record lows, are expected to remain weak in the next few months due to a supply glut that will offset an expected increase in demand, the China Iron & Steel Association (CISA) said on Thursday.

BHP warns of job cuts as coal markets slow
SYDNEY, Aug 16 (Reuters) - BHP Billiton said on Thursday jobs could go at its Australian coal mines as the company faces a deteriorating global market, the latest sign of global miners scaling back due to slowing industrial activity in China.
 BHP in a 50-50 partnership with Japan's Mitsubishi operates seven coal mines in Queensland's Bowen Basin yielding mostly metallurgical coal used in steel making. At peak output, the mines can supply up to a fifth of the world's traded coal.

Gold demand hits lowest in over 2 years in Q2 -WGC
LONDON, Aug 16 (Reuters) - Gold demand fell to its lowest level in more than two years in the second quarter, the World Gold Council said on Thursday, as a drop in buying in major consumers India and China outweighed a record quarter for central bank purchases.
Overall gold consumption fell 7 percent or nearly 76 tonnes to 990 tonnes in the three months to June, its lowest quarterly level since the first three months of 2010, the WGC said in its quarterly Gold Demand Trends report.

Alcoa to sell Texas plant assets, land
Aug 15 (Reuters) - Aluminum company Alcoa Inc said on Wednesday it will sell land and other assets at its Rockdale, Texas plant to the Lower Colorado River Authority, a non-profit public utility and conservation body.
Terms of the deal were not disclosed, but Alcoa said it will retain ownership of its smelter and aluminum powder operations in Rockdale.

Supply glut to keep China steel prices low - CISA
SHANGHAI, Aug 16 (Reuters) - China's steel prices, hovering near record lows, are expected to remain weak in the next few months due to a supply glut that will offset an expected increase in demand, the China Iron & Steel Association (CISA) said on Thursday.
CISA said low steel prices will also weigh down iron ore prices, which are currently trading around their lowest level in more than two and a half years.

Tight tin supplies could shield prices from gloomy economy
SINGAPORE, Aug 15 (Reuters) - Tin looks set to continue to outperform other base metals in coming months as tightening supplies help insulate the soldering material from the impact of a slowing Chinese economy, industry sources said on Monday.
China is the world's top producer and consumer of tin, used in electronics manufacture. Tin prices have fallen this year with other industrial commodities dependent on Chinese demand, but the dip has sparked a response from suppliers and consumers and tin has outperformed copper, the most liquid industrial metal, over the past three weeks.

BASE METALS: London copper climbed on hopes for more economic stimulus in the world's top two economies, the United States and China, which would support growth and boost global demand for metals. (Reuters)

PRECIOUS METALS: Gold hovered above $1,600 an ounce as investors continued to hope central banks would take further steps to boost the global economy, even as recent U.S. data suggested the Federal Reserve may not need to intervene for now. (Reuters)

METALS-LME copper rises on stimulus hopes
SHANGHAI, Aug 16 (Reuters) - London copper climbed on hopes for more economic stimulus in the world's top two economies, the United States and China, which would support growth and boost global demand for metals.
"New stimulus policies can give metal prices a short-term boost and some people are betting on that. But most investors prefer to stay on the sidelines which accounts for few fresh positions opened so far and small price movements," said a Shanghai-based trader.

PRECIOUS-Gold stays above $1,600, stimulus hopes persist
SINGAPORE, Aug 16 (Reuters) - Gold hovered above $1,600 an ounce as investors continued to hope central banks would take further steps to boost the global economy, even as recent U.S. data suggested the Federal Reserve may not need to intervene for now.
"(Further Fed quantitative easing has) become unlikely in the short term, as the string of negative economic surprises seem to have come to an end," Credit Suisse analysts wrote in a research note.
"What counts at the moment is the 'real' economy and while certainly far from booming, this does not appear weak enough for the Fed to act."