Tuesday, August 28, 2012

20120828 1636 Global Markets & Commodities Related News.

GLOBAL MARKETS: Asian stocks fell on investor caution ahead of a gathering of central bankers and economists in Wyoming later in the week which could shed some light on further stimulus plans. MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent to a three-week low, dragged down by the materials sector. European stock index futures pointed to a lower open as mounting worries over global growth overshadowed expectations of further stimulus measures from the U.S. Federal Reserve and the European Central Bank. Shares of Apple climbed to another record on Monday, keeping the Nasdaq index afloat in the lowest trading volume of the year, with investors looking ahead to a key speech by Federal Reserve Chairman Ben Bernanke on Friday. (Reuters)

FOREX: The euro sagged against the dollar while the yen gained broadly as market players trimmed their long positions in risk currencies ahead of a central bankers' meeting later in the week. (Reuters)

FOREX- Euro sags, yen gains as market trims risky FX positions
The euro sagged against the dollar while the yen gained broadly as market players trimmed their long positions in risk currencies ahead of a central bankers' meeting later in the week
"The euro had been bought on hopes after the ECB comments.  But unless the market sees action to back up its words soon, the rally will fizzle," said Minori Uchida, chief FX strategist at the Bank of Tokyo-Mitsubishi UFJ.

Mixed endorsements of more Fed easing (Reuters)
Two top Federal Reserve officials offered widely different endorsements of more U.S. policy easing on Monday, with one weighing the benefits and risks of more action and the other stressing the need to act now.

GRAINS:U.S. soybeans inched higher as concerns about tight supplies from the drought-striken Midwest lingered, while corn firmed amid concerns over potential damage from Tropical Storm Isaac. (Reuters)

U.S. corn harvest slows with rains; farmers maintain record pace (Reuters)
The U.S. corn harvest inched forward during the past week,  government data showed on Monday, as farmers gave crops more time to dry down to save them the cost of machine drying.

OIL: Brent oil futures were slightly lower, but steadied above $112 a barrel, supported by supply concerns after U.S. companies slashed crude production in the Gulf of Mexico as Tropical Storm Isaac threatened to strengthen into a hurricane.  (Reuters)

Oil companies, refiners brace for Louisiana-bound Isaac (Reuters)
Energy companies evacuated offshore oil rigs and shut down U.S. Gulf Coast refineries on Monday as Tropical Storm Isaac threatened to reach hurricane strength and batter the country's oil refining belt this week.

Venezuela refinery could restart Friday (Reuters)
Venezuela's biggest refinery could restart operations on Friday and fires still burning in three storage tanks will be extinguished within two days, the country's energy minister told Reuters, following the country's worst oil industry accident.
BASE METALS: London copper fell, with many investors closing long positions as they waited for a meeting of central bankers later this week for fresh clues on possible monetary stimulus from the U.S. Federal Reserve.

PRECIOUS METALS: Gold edged lower after rising to its highest in over four months in the previous session, as caution prevailed ahead of a central bankers' meeting this week. (Reuters)

Labour strife returns in S.Africa's platinum belt (Reuters)
Labour strife returned to South Africa's platinum sector on Monday, derailing London-based Lonmin's efforts to restart mining and fanning fears of a resurgence of the violence that has killed 44 people this month.

COLUMN-China iron, coal defaults not all they seem
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
LAUNCESTON, Australia, Aug 27 (Reuters) - One of the most bearish signals regarding China's commodity demand has been several reports of iron ore and coal cargoes being deferred or cancelled.
The reasoning is sound enough; if the Chinese are defaulting on imports of commodities it must be because demand is down and there is little need for volumes that had been bought when the outlook was stronger.

S.Africa's gold sector also hit with wage hike demands
JOHANNESBURG, Aug 27 (Reuters) - South Africa's gold mining companies have been hit by union demands for wage hikes but the industry has little room to budge as current collective agreements do not expire until the middle of next year, the country's chamber of mines said on Monday.
The country's platinum sector currently faces a wave of labour strife and violence that killed 44 people this month and shut ore output at mines run by Lonmin  , the world's third largest producer of the precious metal.

China's Baosteel sees steel prices staying under pressure
SHANGHAI, Aug 27 (Reuters) - Baoshan Iron & Steel , China's biggest listed steelmaker, expects steel prices to remain under pressure for the rest of this year as the industry shows no sign of curbing output and steps to stimulate the economy take time to kick in.
"Steel prices will unlikely increase much in the second half of this year due to the oversupply. Prices are expected to stay at low levels," the company said on Monday, as it posted a 53-percent drop in first-half profit, excluding one-off items.

China's daily steel output dips in mid-August -CISA data
SHANGHAI, Aug 27 (Reuters) - China's average daily crude steel output fell 2 percent to 1.93 million tonnes between August 11-20 compared with the first 10 days of the month, data from the China Iron & Steel Association showed on Monday, as sharply falling steel prices pushed mills to curb production.
Shanghai rebar futures  tumbled to as low as 3,492 yuan ($550) per tonne on Monday, their weakest since the contract was launched in 2009, dragging prices of steelmaking raw material iron ore down by 33 percent from this year's peak.

METALS-Copper drops as investors eye c.banks, close long positions
SHANGHAI, Aug 28 (Reuters) - London copper fell, with many investors closing long positions as they waited for a meeting of central bankers later this week for fresh clues on possible monetary stimulus from the U.S. Federal Reserve.
"LME prices are down as investors are playing it safe after coming back from a long weekend while waiting for clearer trading cues to emerge," said a Shanghai-based trader with an international firm.

• PRECIOUS-Gold inches down as investors await central banks meeting
SINGAPORE, Aug 28 (Reuters) - Gold edged lower after rising to its highest in over four months in the previous session, as caution prevailed ahead of a central bankers' meeting this week.
"If we get QE3, gold could rise to $1,680 or $1,700," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong. "But for now, it is still unclear what is going to happen.

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