20120830 1616 Global Markets & Commodities Related News.

GLOBAL MARKETS: Asian shares hit a one-month low on growth concerns while major currencies trod water as investors waited to see whether U.S. Federal Reserve Chairman Ben Bernanke will give any hint about further U.S. stimulus in a speech to fellow central bankers on Friday. European shares continued to drift lower, with investors reticent about lifting their exposure to riskier assets given uncertainty over the next moves by the U.S. Federal Reserve and the outlook for the global economy. U.S. stocks edged higher on Wednesday in the lightest trading of the year as investors waited for a key speech by Federal Reserve Chairman Ben Bernanke on Friday. (Reuters)

U.S. Q2 growth revised up, Fed still seen in play (Reuters)
The U.S. economy fared slightly better than initially thought in the second quarter, but the pace of growth remained too slow to shut the door on further monetary easing from the Federal Reserve.

China's official PMI seen hitting 9-month low in August (Reuters)
China's official manufacturing managers' index (PMI) may have eased to a 9-month low of 50 in August, supporting the case for  fresh easing measures by the central bank as the world's second-largest economy struggles against stiff global headwinds.

FOREX: The euro edged higher versus the dollar, finding support ahead of a speech by U.S. Federal Reserve Chairman Ben Bernanke on Friday, but the Australian dollar hit a one-month low on concerns about the outlook for China.  (Reuters)

FOREX-Euro edges higher; Aussie touches 1-month low
SINGAPORE, Aug 30 (Reuters) - The euro clawed higher versus the dollar, finding support ahead of a speech by U.S. Federal Reserve Chairman Ben Bernanke on Friday, but the Australian dollar hit a one-month low on ongoing concerns about the outlook for China.
"If he were to say something tremendous, the dollar is likely to come under strong selling pressure," Okagawa said, adding that such uncertainty made it difficult to buy the dollar aggressively at this point.

U.S. grain sector on high alert for aflatoxin in drought-hit corn (Reuters)
The grain industry, makers of milk products and crop insurers are on high alert for a naturally occurring toxin in corn that could present another challenge to farmers already hit by the worst drought in 56 years.

GRAINS: U.S. wheat fell as traders locked in profits following its biggest daily climb since mid-July in the previous session, although concerns that Russia is poised to implement export curbs continued to support prices.  (Reuters)

U.S. natgas storage projected up 61 bcf in weekly EIAs (Reuters)
U.S. natural gas inventories, on average, were forecast to have gained 61 billion cubic feet last week, according to a Reuters poll of industry traders and analysts on Wednesday.

OIL: U.S. crude futures fell towards $95 a barrel after oil facilities in the Gulf of Mexico were largely spared storm damage while a surprise build in crude stockpiles and a possible release of strategic oil stocks weighed on prices. (Reuters)

Japan nickel imports from Indonesia rise as delayed cargoes arrive
TOKYO, Aug 30 (Reuters) - Japan's nickel imports from Indonesia surged in July from the year before due to the arrival of cargoes delayed after Jakarta imposed new mining regulations and because figures for 2011 were decimated by the deadly earthquake and tsunami that hit in March that year.
An industry body in Tokyo said that nickel trade between the two countries was "returning to normal" after shipments slated for May and June were postponed as details of Indonesia's new mining rules, announced in May, became clear.

China's Baosteel expecting "most difficult" third quarter
BEIJING, Aug 29 (Reuters) - Baoshan Iron and Steel , China's biggest listed steelmaker, expects the third quarter to be the "most difficult" of the year, but the company should avoid any losses over the period, executives said on Wednesday.
The company, also known as Baosteel, earned profits of 2.38 billion yuan ($374.63 million) in the first half of the year, down 53 percent from a year earlier, its performance hit by sluggish demand and persistent overproduction in the Chinese steel sector, the world's biggest.

Global iron ore demand may drop in H2 2012 from H1 - Baosteel (Reuters)
Global demand for iron ore will not grow and could even drop in the second half of 2012 compared with the first six months, with supply also rising, a senior official at China's Baoshan Iron and Steel Co Ltd said on Thursday.

COLUMN-Bearish iron ore fundamentals conflict with positive technicals
--Clyde Russell is a Reuters market analyst. The views expressed are his own.--
LAUNCESTON, Australia, Aug 30 (Reuters) - Sentiment toward iron ore is probably at its most bearish since the 2008 global recession, in contrast to technical indicators which are sending some signals that a bullish turning point may be near.
Spot iron ore in Asia fell to $90.30 a tonne on Wednesday, the lowest since November 2009, and it's hard to find any optimistic traders given mounting evidence of slowing demand in China, the world's largest consumer.

Global iron ore demand may drop in H2 2012 from H1 - Baosteel
SUZHOU, China, Aug 30 (Reuters) - Global demand for iron ore will not grow and could even drop in the second half of 2012 compared with the first six months, with supply also rising, a senior official at China's Baoshan Iron and Steel Co Ltd said on Thursday.
Global seaborne supply of iron ore would rise by more than 50 million tonnes in the second half from the first half, Zhang Dianbo, head of purchasing at Baosteel , China's biggest listed steelmaker, told an industry conference.

BASE METALS: Copper rallied after China's Premier Wen Jiabao said he was confident the crisis-stricken euro zone can survive its nagging debt crisis, which lifted the euro and forced shorts to cover.  (Reuters)

PRECIOUS METALS: Gold was trapped in a tight range ahead of a speech from U.S. Federal Reserve Chairman Ben Bernanke this week, which could stoke expectations for a third round of quantitative easing to stimulate the economy.  (Reuters)

METALS-LME copper falls as China stimulus hopes fade; c.bankers eyed
SHANGHAI, Aug 30 (Reuters) - London copper fell for a fourth session on doubts that top consumer China would launch any significant economic stimulus measures soon, while nervousness ahead of a meeting of central bankers in the United States also curbed risk appetite.
"Some people believe China won't be rolling out any big stimulus measures before this year's political leadership transition is complete," said a Shanghai-based trader. "That means we may only see clear policy direction around June next year when the new leaders have fully settled down."

PRECIOUS-Gold stuck in tight range before Fed speech
SINGAPORE, Aug 30 (Reuters) - Gold was trapped in a tight range ahead of a speech from Federal Reserve Chairman Ben Bernanke on Friday that could stoke expectations for a third round of quantitative easing to stimulate the U.S. economy.
"Sentiment is a bit mixed. People are pretty cautious," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.