20120823 1601 Global Markets & Commodities Related.

GLOBAL MARKETS: Asian shares rose to a two-week high after Federal Reserve minutes raised hopes for fresh monetary stimulus, but a survey suggesting that China's manufacturing sector is contracting capped the gains. European stock index futures pointed to a higher open after steep declines in the previous session, with minutes from the latest Federal Reserve meeting raising expectations of another round of stimulus to help the economy. The S&P 500 erased earlier losses to close flat on Wednesday after minutes from the latest Federal Reserve meeting indicated the central bank might be ready for another round of stimulus. (Reuters)

FOREX-Dollar hits 2-month low on Fed easing optimism
TOKYO, Aug 23 (Reuters) - The dollar hit a two-month low against a basket of currencies after minutes of the U.S. Federal Reserve meeting surprised traders by suggesting it is willing to deliver more stimulus "fairly soon".
"The minutes were quite dovish, leading you to think that there will be some form of easing next month unless upcoming payroll data is surprisingly strong," said Ayako Sera, senior economist at Sumitomo Mitsui Trust Bank, referring to the U.S. employment report due on Sept. 7.

FOREX: The dollar hit a two-month low against a basket of currencies after minutes of the U.S. Federal Reserve meeting surprised traders by suggesting it is willing to deliver more stimulus "fairly soon".(Reuters)

Fed looks set to ease fairly soon barring swift rebound(Reuters)
The Federal Reserve is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably, minutes from the U.S. central bank's latest meeting suggested.

China HSBC Flash PMI at 9-mth low, new export orders sink(Reuters)
China's factory activity in August shrank at its fastest pace in nine months as new export orders slumped and inventories rose, a signal that a persistent slowdown in economic growth has extended deeper into the third quarter.

China factory sector shrinks most in 9 mths-survey
BEIJING, Aug 23 (Reuters) - China's factories contracted in August the most in nine months according to a survey showing falling export orders and rising inventories, signs that more policy action is probably needed to stop a slowdown in economic growth now in a seventh quarter.
The HSBC Flash China manufacturing purchasing managers index (PMI) fell to 47.8 in August, its lowest level since November, down from both the 49.5 July flash and the 49.3 final reading.

GRAINS: Chicago soybeans hit a contract high, rising for a fourth session out of five, after a group of experts painted a bleak supply picture for the crop that has been scorched by the worst drought across the U.S. Midwest in 56 years. (Reuters)

Illinois corn, soy farms suffer yield loss on drought -tour(Reuters)
Soybean yields in Illinois, the No. 2 growing state for the crop, have been hit by a blistering drought in the region, while corn yields there are at their lowest since 1995, a group of experts looking at the condition of crops in the United States said on Wednesday.

Australia declares resources boom has peaked(Reuters)
Australia declared the top of the resources boom, which had cushioned the country against the global financial crisis, a day after the world's biggest miner BHP Billiton shelved two major expansion plans worth at least $40 billion.

U.S. crude stocks fall sharply, oil products mixed-EIA(Reuters)
U.S. crude oil stockpiles fell sharply last week amid a drop in crude imports, while inventories of refined products were mixed as plant utilization fell, government data showed on Wednesday.

OIL: Brent crude rose more than a dollar, approaching $116 per barrel on renewed hopes for another round of monetary stimulus by the U.S. Federal Reserve, helping investors look past weak manufacturing data from China. (Reuters)

COLUMN-China's metals imports reflect supply as well
---Andy Home is a Reuters columnist. The opinions expressed are his own.---
LONDON, Aug 22 (Reuters) - Once again the strength of China's metallic imports has surprised many commentators.
Construction sector clampdown? Manufacturing slowdown? The drags on the Dragon, as it is affectionately known in the metals markets, are multiple.

Rio's CEO says long-term commodities outlook unchanged
PERTH, Aug 23 (Reuters) - The positive long-term outlook for global commodity prices has not changed, global miner Rio Tinto's chief executive said on Thursday, shortly after Australia's resources minister announced the peak of the country's resources boom.
"The long term picture for me hasn't changed," Tom Albanese told a resources industry gathering in Perth, adding "I would have never have said there was a boom in the first place."

BASE METALS: London copper rallied to a one-month high, after the U.S. Federal Reserve signalled further stimulus might be on the agenda, but shrinking factory growth numbers out of top metals consumer China kept a lid on gains.(Reuters)

PRECIOUS METALS: Gold rose above $1,660 an ounce for the first time since early May, after minutes from the latest U.S. Federal Reserve meeting fuelled hopes for the swift launch of another round of quantitative easing. (Reuters)

METALS-Copper tails back from one-month high after China PMI
SINGAPORE, Aug 23 (Reuters) - London copper rallied to a one-month high, after the U.S. Federal Reserve signalled further stimulus might be on the agenda, but shrinking factory growth numbers out of top metals consumer China kept a lid on gains.
"The Fed said they would act unless they see substantial and sustainable strengthening. Clearly you're not seeing that which says the Fed has to do something," said Hong Kong-based commodities analyst James Luke of China International Capital Corporation.
"But it's been a pretty muted price response, which I think reflects ongoing China industrial weakening and doubts over the efficacy of any new stimulus round."

PRECIOUS-Gold hits highest since early May on Fed stimulus hopes
SINGAPORE, Aug 23 (Reuters) - Gold and silver both rose to their highest levels in more than three months, shaking off months of lethargy after minutes from the latest U.S. Federal Reserve meeting fuelled hopes for the swift launch of more bond buying.
"The Fed's tone is totally different in the minutes from previous comments, and that helped gold break from the previous range and move into a higher price range ahead of the peak consumption season," said Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen.