20120118 1825 FCPO EOD Daily Chart Study.

FCPO closed : 3180, changed : +16 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned upward, buying returned.
Support : 3150, 3100, 3070, 3050 level.
Resistance : 3200, 3250, 3270, 3300 level.
Comment :
FCPO closed recorded small gain with slower volume changed hand.  Soy oil price currently trading little lower after overinght closed recorded gains of nearly 1% while crude oil price trading higher.
Price traded mostly in negative zone through out the day before last hour buying activities pushed price higher to closed at the high of the day probably due to some short covering ahead of long Chinese New Year holiday.
Chart reading remained suggesting a correction range bound upside biased market development testing resistance near middle Bollinger band level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20120118 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1516.5, changed : -5.5 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : falling lower, seller testing market.
Support : 1515, 1505, 1500, 1494 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded loss with thinner volume transacted doing half point discount compare to cash market that also closed slightly lower. Overnight U.S. market closed recorded small gain and today Asia markets ended mixed while European markets currently trading lower.
Global markets reacted differently with news from World Bank gutting global growth forecast, Greece near getting debt deal with private creditors, better U.S. and Germany economy data and declined China foregin direct investment.
Technical reading remained suggesting a correction range bound upside biased market development with immediate support near middle Bollinger band.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120118 1710 Regional Markets EOD Daily Chart Study.

 DJIA chart reading :  correction range bound upside biased.

  Hang Seng chart reading : upside biased with possible pullback.

KLCI chart reading : correction range bound upside biased.

20120118 1627 Palm Oil Related News.

Palm Oil Declines as Rains May Help Drought-Hit Soybean Crops
2012-01-18 06:21:24.336 GMT

By Ranjeetha Pakiam
    Jan. 18 (Bloomberg) -- Palm oil dropped on speculation that
forecasts for rain in South America may limit damage to soybean
crops from dry weather, improving prospects for global cooking-
oil supplies.
    The April-delivery contract fell as much as 0.6 percent to
3,146 ringgit ($1,008) a metric ton on the Malaysia Derivatives
Exchange and ended the morning at 3,158 ringgit.
    There were “generally favorable” soil moisture conditions
for soybeans in Brazil, except for the state of Rio Grande do
Sul where more rain would benefit crops, Telvent DTN Inc. said
in a report yesterday. The next chance for significant rainfall
in Argentina will be later this week, the forecaster said.
    “Weather concerns still linger,” Ker Chung Yang, an
analyst at Phillip Futures Pte., said by phone from Singapore.
Palm oil will trade between 3,100 ringgit and 3,200 ringgit
today, he said. Trading may decline next week because of the
Lunar New Year holidays starting on Jan. 23 and some “profit-
taking” will be seen before the long weekend, Ker said.
    “In the last two or three days, good amounts of showers
are there, but they’re further predicting the showers to stop
and dry weather conditions to come back in the next 10 to 15
days,” Vimala Reddy, an analyst at Karvy Comtrade Ltd., said by
phone from the Indian city of Hyderabad. “How far that will
happen will have to be closely watched.”
    March-delivery soybean oil, a substitute for palm oil, fell
0.4 percent to 50.56 cents a pound on the Chicago Board of Trade.
Soybeans for delivery in the same month fell 0.6 percent to
$11.77 a bushel.
    Palm oil for delivery in September lost as much as 0.4
percent to 7,952 yuan ($1,259) a ton on the Dalian Commodity
Exchange, while soybean oil for delivery in the same month
dropped as much as 0.3 percent to 8,926 yuan a ton.

20120118 1625 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares steady, eyes on Portugal debt sale, Greece
TOKYO, Jan 18 (Reuters) - Asian shares and the euro steadied after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in   a debt sale and Greece resuming talks on its debt restructuring.
"After yesterday's rally, investors now shift their focus to talks on Greece, with a lot being unresolved," said Frances Cheung, senior strategist for Asia ex-Japan at Credit Agricole CIB in Hong Kong.

FOREX-Euro maintains buoyancy but faces resistance
TOKYO, Jan 18 (Reuters) - The euro drifted higher in Asia, kept aloft by short-covering after recent lows, but faced resistance ahead of a Portuguese debt auction later in the session.
"The euro's move up is a short-term correction to recent excessive pessimism, but its medium-term continuation is questionable," said Kimihiko Tomita, head of foreign exchange for State Street Global Markets in Tokyo.

Corn rises for 2nd day, soy dips on LatAm rain f'cast
SINGAPORE, Jan 18 (Reuters) - U.S. corn rose for a second straight session, with support from improved risk sentiment and tight global supplies, while soy slid on forecasts of rain in parts of the drought-hit South American grain belt.
"The weather is looking a little bit wetter over the next five days, especially over some of the most stressed areas in Argentina and southern Brazil," said Victor Thianpiriya, an agricultural commodity strategist at ANZ.

India allows rice exports beyond two million tonnes-govt
NEW DELHI, Jan 17 (Reuters) - India has allowed overseas sale of common rice beyond two million tonnes, officials said on Tuesday, removing a previous cap announced by Food Minister K. V. Thomas in September 2011.
"Our stocks are comfortable on a bumper harvest. So, we can continue with exports of rice and wheat," Thomas said on Tuesday. Ministry officials confirmed this removed the limit of two million tonnes.

Argentina's drought to keep punishing corn, soy
BUENOS AIRES, Jan 17 (Reuters) - Argentine corn and soy farms will suffer from hot weather and scant rains for the rest of this week, forecasters said on Tuesday, increasing worries that crop losses will eat into global supplies.
Argentina, which supplies about 20 percent of the world's corn exports and 12 percent of its soybeans, has been pounded for weeks by an unrelenting Southern Hemisphere summer sun.

Heavy rains relieve Brazil's parched No. 2 soy state
SAO PAULO, Jan 17 (Reuters) - For the next 10 days heavy rains will lash Parana, Brazil's No. 2 soybean growing state, soaking crops badly in need of moisture after a long drought, forecasters predicted Tuesday, but no rain was headed for dry Rio Grande do Sul.
Parana, a southern state, bore the brunt of a prolonged dry spell in what is usually a wet summer season due to the La Nina weather anomaly, which the U.S. Climate Prediction Center has said could last until May.

China's soybean imports to rise again- Oil World
HAMBURG, Jan 17 (Reuters) - China, the world's largest soybean buyer, is likely to raise soybean imports up to July 2012 after recent falls but large port inventories could hinder purchasing in the immediate future, Hamburg-based oilseeds analysts Oil World said on Tuesday.
The United States, Brazil and Argentina together exported 19.3 million tonnes of soybeans to China in Sept./Dec. 2011, up 1.1 million tonnes or 6 percent on the year, Oil World estimates.

Brent rises above $112 on weak dollar, demand growth hopes
SINGAPORE, Jan 18 (Reuters) - Brent crude rose above $112 as the dollar weakened and a slew of positive economic indicators, from China to the United States, eased demand concerns triggered by the debt crisis in Europe.
"Oil markets are still rallying on positive data, particularly from China, and expectations of more easing by the country to ensure steady growth," said Natalie Robertson, an analyst at ANZ. "Eyes are also on Europe as talks of a Greek default return. That's a factor weighing on markets.

Stainless steel production up 3.1 pct in Q3 2011-ISSF
LONDON, Jan 17 (Reuters) - Global crude stainless steel production grew 3.1 percent in the third quarter of 2011 compared with the same period one year earlier, recovering after a weak second quarter, a report from the stainless steel industry body showed on Tuesday.
This suggests 2011 production is likely to hit a new record high although the pace of growth has slowed significantly from the previous year.

China sets 5-year demand, output plans on base metals - report
SHANGHAI, Jan 17 (Reuters) - China will step up efforts to reduce overcapacity and energy consumption in its nonferrous metals industry and is aiming to keep its annual output of 10 major metals at 46 million tonnes by 2015, from 31.21 million tonnes in 2010, an industry website reported on Tuesday.
Based on the latest five-year development plan between 2011 and 2015 for the industry, China has forecast its total copper production to grow on average 7.3 percent per year to reach 6.5 million tonnes by 2015, compared with an actual output of 5.18 million tonnes in 2011, according to government plans posted on a website owned by the China Non-ferrous Metals Industry Association.

Copper steady before debt sales by euro zone nations
KUALA LUMPUR, Jan 18 (Reuters) - Copper was steady , after surging to its highest in more than two months in the previous session, as euro zone funding worries eroded investor confidence following upbeat economic data in China, Germany and the United States.
Three-month copper on the London Metal Exchange  was at $8,227.50 a tonne, up 0.34 percent, by 0105 GMT. Prices have climbed 2.5 percent this week.

China sets 5-year demand, output plans on base metals - report
SHANGHAI, Jan 17 (Reuters) - China will step up efforts to reduce overcapacity and energy consumption in its nonferrous metals industry and is aiming to keep its annual output of 10 major metals at 46 million tonnes by 2015, from 31.21 million tonnes in 2010, an industry website reported on Tuesday.
Based on the latest five-year development plan between 2011 and 2015 for the industry, China has forecast its total copper production to grow on average 7.3 percent per year to reach 6.5 million tonnes by 2015, compared with an actual output of 5.18 million tonnes in 2011, according to government plans posted on a website owned by the China Non-ferrous Metals Industry Association.

Gold off one-month high; euro zone eyed
SINGAPORE, Jan 18 (Reuters) - Gold traded steady , off the one-month high hit in the previous session on improved global economic outlook, while investors shifted focus once again to the troubles of euro zone.
"There's considerable anxiety over Greece," said Nick Trevethan, Senior Commodity Strategist at ANZ in Singapore. "Together with the looming Chinese holiday, you've probably got a recipe for risk reduction."

METALS-Copper rises as investors focus on longer-term Chinese demand
KUALA LUMPUR, Jan 18 (Reuters) - Copper inched up after surging to its highest in more than two months in the previous session, as investors waved off a slowdown in China's housing sector, betting that demand for commodities will rebound later this year.
"China's housing sector is facing challenges right now but this industry will still contribute to greater commodity consumption this year," said Judy Zhu, a commodities analyst at Standard Chartered in Shanghai, who forecasts LME copper averaging $9,000 in the third quarter.

PRECIOUS-Gold off one-month high; euro zone eyed
SINGAPORE, Jan 18 (Reuters) - Gold traded steady off the one-month high hit in the previous session on improved global economic outlook, while investors shifted focus once again to the troubles of euro zone.
"There's considerable anxiety over Greece," said Nick Trevethan, Senior Commodity Strategist at ANZ in Singapore. "Together with the looming Chinese holiday, you've probably got a recipe for risk reduction."

20120118 1101 Global Market & Commodities Related News.

World Bank Cuts Global Growth Outlook
The World Bank cut its global growth forecast by the most in three years, saying that a recession in the euro region threatens to exacerbate a slowdown in emerging markets such as India and Mexico. The Washington-based institution said the world economy this year will grow 2.5 percent, down from a June estimate of 3.6 percent. The World Bank sees the euro area contracting 0.3 percent in 2012, compared with a previous estimate of 1.8 percent growth. The U.S. outlook was cut to an expansion of 2.2 percent from 2.9 percent. “Even achieving these much weaker outturns is very uncertain,” the World Bank said in its Global Economic Prospects report released today. “The downturn in Europe and weaker growth in developing countries raises the risk that the two developments reinforce one another, resulting in an even weaker outcome.”

China’s Foreign Direct Investment Drops
Foreign direct investment in China fell for the second straight month in December as global financial turmoil dimmed companies’ appetite for spending. Investment from overseas fell 12.73 percent to $12.24 billion last month from a year earlier, the Ministry of Commerce said in a statement in Beijing today. For the full year, spending rose 9.72 percent to a record $116 billion, the data showed. Investment fell 9.8 percent in November, the first decline since 2009. China announced amendments to policies to attract foreign funds last month, changes that may weigh on spending in some industries this year. Europe’s debt crisis and anticipated weaker growth in the U.S. this year may also limit investment, with central bank Governor Zhou Xiaochuan warning this month a global downturn could lead to “large” capital withdrawals from the country.
“Foreign investment faces challenges and won’t grow very fast this year,” said Shen Jianguang, chief Greater China economist at Mizuho Securities Asia Ltd. in Hong Kong. “Some industries are facing overcapacity” and it will “take time for investment to pick up” in services and renewable energy industries that the government wants to encourage, he said.


GLOBAL MARKETS-Shares steady, eyes Portugal debt sale, Greece
TOKYO, Jan 18 (Reuters) - Asian shares and the euro steadied on Wednesday after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in   a debt sale and Greece resumes talks on its debt restructuring.
"More evidence of a soft landing in China should help underpin the recent resilience of market sentiment, despite the ongoing European situation," said analysts at Barclays Capital in a research note.

COMMODITIES-End volatile week down on Europe worries
NEW YORK, Jan 13 (Reuters) - Commodities slid on Friday, ending a volatile week where oil and grains initially surged on supply concerns and a weak dollar, before tumbling on the currency's rebound and renewed worries over Europe.
"While it should be anticlimatic, the realization will also be sobering. In particular, the flight to the dollar will be accelerated, pushing crude oil prices lower," said John Kilduff, partner at Again Capital LLC in New York.

Oil up on economic data, but Europe worry limits rise
NEW YORK, Jan 17 (Reuters) - Brent crude prices edged higher on Tuesday on lift from the weaker dollar and better-than-expected data from China, Germany and the United States, but concerns about Europe's economy after last week's credit downgrades limited gains .  
"Most of it is WTI playing catch-up from the holiday," added John Kilduff, a partner at hedge fund Again Capital in New York. "Brent looks to be reflecting the euro zone concerns. The China GDP was good, but exports were down and that highlights the slowdown in Europe."

POLL-US crude stocks seen rising for fourth week
Jan 17 (Reuters) -  U.S. commercial crude oil stockpiles likely rose last week for the fourth straight week on strong imports, a preliminary Reuters poll showed on Tuesday.  
On average, domestic crude oil inventories were forecast up 2.8 million barrels, according to the poll of six analysts, who all predicted builds for the week to Jan. 13.

Beyond oil a gloomier 2012 economy seen in coal, freight
LONDON, Jan 17 (Reuters) - Oil prices may still be riding high but for a more accurate picture of the state of the global economy in 2012, look at recent developments in the non-oil energy, freight and metals sectors.
Coal and power benchmark futures prices have fallen to their lowest levels since late 2010, while the Baltic Dry Freight Index, a barometer of demand for shipping, is languishing at a three-year low.

Iraq to lift oil exports 400,000 bpd through March
LONDON, Jan 17 (Reuters) - Iraq aims to boost oil exports by up to 400,000 barrels per day over the next two months as it opens the taps at a new Gulf outlet, a senior Iraqi oil industry source said on Tuesday, signalling the world's biggest capacity expansion this year.
Now in year three of a bold oil development programme, Baghdad finally may be able to export all the extra oil extracted from its supergiant fields by foreign oil companies.

NYMEX 12-month natural gas strip hits 10-year low
NEW YORK, Jan 17 (Reuters) - The average of the first 12 months of natural gas futures contracts on the New York Mercantile Exchange slid to its lowest in nearly 10 years on Tuesday, as mild winter weather and record supplies continued to weigh on the complex.
The 12-month futures strip fell 17.4 cents, or 5.7 percent, to $2.859 per million British thermal units, the first settle below $3 since early March 2002. 

Euro Coal-S.Africa prices rise $3/T
LONDON, Jan 17 (Reuters) - Prompt South African coal prices rallied by around $3 a tonne on Tuesday as players covered short positions, but this strength was unlikely to last unless China resumes heavy buying in February, traders and utilities said.
"ARA is a little softer, but there's a bit of a temporary squeeze on February South African cargoes," one European trader said.

20120118 0952 Global Economic Related News.

Singapore: Exports unexpectedly rose on pharmaceutical shipments
Singapore’s exports unexpectedly rose in December as pharmaceutical shipments surged, countering a drop in sales of electronics goods. Non-oil domestic exports climbed 9% y-o-y, after a revised 1.4% increase in November, the island’s trade promotion agency said. The advance in overseas sales may be short-lived as Europe’s sovereign-debt crisis curbs demand for Asian goods, with purchasing managers’ indexes in export-dependent economies including Singapore and Taiwan signaling manufacturing is still contracting. Non-oil exports from Singapore may increase 3% to 5% this year, the trade promotion board said in November (Bloomberg)

China: Slowing growth boosts scope for policy easing
China’s economy expanded at the slowest pace in 10 quarters as Europe’s debt crisis curbed export demand and the property market weakened, sustaining pressure on Premier Wen Jiabao to ease monetary policy. GDP rose 8.9% in the fourth quarter y-o-y, the statistics bureau said. Asian stocks rose on speculation policy makers will ease lending curbs and increase fiscal spending to bolster the world’s second-biggest economy. Liang Wengen, China’s richest man and chairman of Sany Heavy Industry Co, told Wen this month that construction-machinery demand is weak and called for more infrastructure investment. (Bloomberg)

EU: Rescue fund sells bills ‘smoothly’ after S&P’s downgrade
The European Financial Stability Facility issued six-month debt for the first time, selling EUR1.5bn (USD1.9 bn) of securities a day after the euro region’s temporary bailout fund lost its top credit rating. The EFSF sold the 182-day bills at an average yield of 0.27%, it said. Investors bid for 3.1x the amount of bills sold, little changed from the 3.2 bid-to-cover ratio at a 13 Dec offering of three-month bills. The facility’s longer-dated bonds underperformed their euro-area peers after the Standard & Poor’s downgrade to AA+ from AAA. (Bloomberg)

EU: IMF to explore options to boost lending resources, Lagarde says
The IMF’s staff will look into options to increase the fund’s lending power, MD Christine Lagarde said, following a discussion among the institution’s board of directors. Officials from the Group of 20 nations have been considering increasing IMF resources, currently at about USD385bn, as a way to support a world economy threatened by the European debt crisis. Euro-region nations have pledged to channel EUR150bn (USD191bn) to the IMF, while the US has said it has no plans to make bilateral loans to the Washington-based institution. (Bloomberg)

UK: Inflation slows as stores discount amid recession talk
UK inflation slowed in December to its weakest pace in six months as stores discounted clothing to boost sales and petrol prices fell, easing pressure on consumers amid concern the economy may already be back in recession. Consumer prices rose an annual 4.2% compared with 4.8% in November and a peak of 5.2% in September, the Office for National Statistics said. It was the biggest drop in the inflation rate since April 2009, the depth of the last recession. Prices rose 0.4% on the month. The Bank of England forecasts inflation will slow sharply this year, providing relief to consumers as the European sovereign debt crisis and rising unemployment weigh on the recovery. (Bloomberg)

20120118 0951 Malaysia Corporate Related News.

TM in talks with 20 developers for HSBB deal
Telekom Malaysia (TM) is in negotiation with 20 property developers to deliver its high-speed broadband (HSBB) infrastructure services to new property projects, riding on the slew of real estate projects in the pipeline. TM SME executive VP Azizi A Hadi said TM was focusing on urban centres such as the Klang Valley, Penang, Johor to grow the take-up of its HSBB offerings for residential, commercial and office buildings. Last year, TM signed 11 agreements with property developers nationwide for the provision of HSBB services in new projects. (Financial Daily)

Bina Puri bags RM864m Pakistan highway contract
Bina Puri Holdings has secured its much awaited Pakistan highway concession contract. The project, worth INR24.93bn (RM864m), is for the construction of the Karachi-Hyderabad Motorway in Pakistan, after which it will hold the concession for 28 years. Bina Puri said its wholly-owned subsidiary, Bina Puri Pakistan Ltd, signed a concession agreement with National Highway Authority of Pakistan on Monday for the construction of the 136km motorway. The conversion of the existing four-lane Karachi-Hyderabad superhighway into a six-lane motorway will be on a build-operate-transfer basis. (Financial Daily)

Axiata in talks to acquire Goldman-backed Tikona
Axiata Group, Malaysia’s largest mobile-phone operator by market value, is in talks to buy a stake in India’s Tikona Digital Networks, said three people with knowledge of the matter. Axiata is holding discussions with Mumbai-based Tikona’s owners – Goldman Sachs Group, Oak Investment Partners and Everstone Capital Advisors – said two of the people, who declined to be identified because the talks are private. The three firms together control 71% of Tikona, according to the Indian company. A deal may involve Tikona selling new shares to Axiata, one person said. (Malaysian Reserve)

Prestariang clinches RM14m govt ICT contract
Prestariang’s unit Prestariang Systems SB has been awarded an RM14m contract for its 1Citizen Programme, which offers the globally-recognized IC Citizen certification. The ICT service provider said it accepted a letter of award from the Ministry of Information, Communication and Culture (KPKK) and expects to roll out the programme from 1 Jan 2012 to 31 Dec 2013. (Malaysian Reserve)

AmBank collaborates with ANZ in regional expansion
AmBank (AMMB) and Australia and New Zealand Banking Group (ANZ) yesterday signed a business principles agreement to work with each other and with their respective subsidiaries in areas of banking business across 27 countries, including Australia, China, Indonesia, Singapore and Vietnam. AMMB group MD Cheah Tek Kuang said the move will enable the bank to leverage the synergies of a regional distribution platform and respective areas of expertise. (Malaysian Reserve)

MBSB shrugs off takeover talk
Malaysian Building Society (MBSB)’s chief shrugged off talk that it may be a takeover target, saying it was an issue best left to its key shareholder. MBSB is a non-bank financial institution which is 65.5% owned by EPF. The market has often speculated that the EPF, which also owns 44.8% in banking group RHB Capital, may eventually look to merge MBSB with RHBCap or other banking rivals. (BT)

Petronas awards 2 deepwater blocks
Petronas awarded two deepwater exploration blocks on Sabah’s offshore to partnerships between JX Nippon, INPEX Corp and Petronas Carigali SB under separate production sharing contracts (PSC). It said in the statement that the PSC for deepwater block R was awarded to the partnership of JX Nippon Oil & Gas Exploration Ltd, which acts as the operator (37.5%), INPEX Offshore South West Sabah Ltd (37.5%) and Petronas Carigali SB (25%). (StarBiz)

High rise building under construction near KL Sentral catches fire
A building under construction near KL Sentral caught fire about 4am today, resulting in roads leading to KL Sentral and Jalan Brickfields being closed to all traffic. The fire started on the top few floors of the building and the inferno could be seen from a few kilometres away. A Fire and Rescue Department spokesman said the fire started on the 29th floor of the building. "Ten fire engines and 72 personnel were rushed to the scene after we received a distress call at 3.55am," he said. As at 7.30am, the fire-fighters were still fighting the blaze. (StarBiz)

20120118 0946 Global Market Related News.

Most Asian Stocks Fall on Greek Default Concern; Automakers Lead Decline (Source: Bloomberg)
Most Asian stocks fell, paring yesterday’s gain, after Fitch Ratings said Greece is likely to default on its debt and Morgan Stanley cut target prices for some Japanese carmakers. Nintendo Co. (7974), a Japanese maker of video-game players that gets 42 percent of its sale in Europe, slid 1.3 percent. Mazda Motor Corp. (7261), a Japanese automaker, paced losses among automakers after Morgan Stanley cut the company’s target price to 170 yen from 190 yen. Toyoda Gosei Co., a Japanese maker of resin and rubber parts for automobiles, fell the most on the MSCI Asia Pacific Index after it was downgraded to “underperform” from “neutral” by Mizuho Securities. BHP Billiton Ltd. (BHP) rose 0.3 percent after the world’s largest mining company said iron-ore production rose to a record. The MSCI Asia Pacific Index dropped 0.1 percent to 117.68 as of 10:05 a.m. in Tokyo. The measure added 1.9 percent yesterday, the most since Dec. 21.

Dow Average Rises to Highest Level Since July (Source: Bloomberg)
U.S. stocks advanced, sending the Dow Jones Industrial Average to the highest level since July, after reports bolstered optimism in the American and German economies and Spain’s borrowing costs decreased at an auction. Equities pared gains as financial shares slumped, with Citigroup Inc. (C) losing 8.2 percent amid an unexpected drop in earnings. Wells Fargo & Co. (WFC), the largest U.S. bank by market value, gained 0.7 percent amid record profit. Sears Holdings Corp. (SHLD) surged 9.5 percent, the most in the Standard & Poor’s 500 Index, on speculation that the company may seek to go private. Carnival Corp. tumbled 14 percent after the Costa Concordia cruise ship ran aground off the coast of Italy on Jan. 13. The S&P 500 increased 0.4 percent to 1,293.67 at 4 p.m. New York time, paring an earlier gain of as much as 1.1 percent. The Dow rose 60.01 points, or 0.5 percent, to 12,482.07.

U.S. Market Shrinks Amid Heavy Buybacks (Source: Bloomberg)
Stocks are getting scarcer in the U.S. for the first time since the bull market began as companies cut share sales to the lowest level since 2006 and buy back equity at the fastest pace in four years. Amgen Inc. (AMGN), Hewlett-Packard Co. (HPQ) and 1,971 other U.S. companies repurchased $397 billion of stock last year, while they issued $169 billion of new equity, data compiled by Birinyi Associates Inc. and Bloomberg show. The combination reduced the Standard & Poor’s 500 Index divisor, a measure of outstanding shares, by 0.6 percent last quarter, the first drop since March 2009. Shrinking supply supports prices and shows valuations are so low that executives would rather buy back shares than spend the cash to expand, according to Columbia Management Investment Advisers LLC and USAA Investment Management Co. Bears say dwindling growth prospects will limit gains and deter investors who pulled money from stock funds for eight straight months through December, the longest stretch in at least two decades.

Emerging Stocks Rise to Two-Month High as China Data Fuels Policy Optimism (Source: Bloomberg)
Emerging-market stocks rose, driving the benchmark index to a two-month high, after China’s gross domestic product expanded more than estimated and reports showed strength in the U.S. and German economies. The MSCI Emerging Markets Index (MXEF) gained 2.2 percent to 972.35 at the close in New York, the highest since Nov. 14. The Shanghai Composite Index (SHCOMP) advanced 4.2 percent, the most since October 2009. Benchmark gauges in Russia, Poland and India rose more than 1 percent, as South Africa’s index hit a record high. The Bovespa gained for a second day in Sao Paulo. China’s economy expanded 8.9 percent in the three months ended Dec. 31 from a year earlier, the statistics bureau said. Economists in a Bloomberg survey had forecast an 8.7 percent gain. Manufacturing in the New York region expanded in January at the fastest pace in nine months, and German investor confidence increased the most on record.

Euro firm along with commodity currencies on China
LONDON, Jan 17 (Reuters) - The euro rose for the first time in three trading sessions, while commodity currencies advanced as data showing China's economy grew more than expected in the fourth quarter gave risk sentiment a shot in the arm.
"I don't think the euro's gains can last and this short squeeze that we have seen post- the Chinese data will continue," said Ankita Dudhani, G10 currency strategist at RBS.

Chinese growth hopes lift stocks, euro
LONDON, Jan 17 (Reuters) - A slightly brighter picture for global economic growth countered concerns over Europe's debt crisis, lifting shares and the euro, but German data, Greek default fears and a looming debt sale by Spain were set to test sentiment.
"The slowdown is quite modest, and the overall situation of the Chinese economy is stable," said Hua Zhongwei, analyst with Huachuang Securities in Beijing.

European Stocks Rise on China Growth Outlook; Rio Tinto Climbs (Source: Bloomberg)
European stocks climbed, with the Stoxx Europe 600 Index extending a five-month high, amid speculation that China’s slowest economic growth in more than two years will lead to easier monetary policy. Daimler AG (DAI) led carmakers higher, rallying 3.8 percent. Rio Tinto Group advanced 2.9 percent after the world’s third-largest mining company said fourth-quarter iron ore production rose to a record, driven by expansion at its mines and ports in Australia’s Pilbara region. The Stoxx 600 added 0.9 percent to 253.27 at the close, rallying to its highest level since Aug. 2. The gauge closed above its 200-day moving average yesterday for the first time since July.

S&P 500 Rally May Begin to Stall as Bears Disappear: Technical Analysis (Source: Bloomberg)
The stock-market rally has driven short interest to a nine-month low and bearish sentiment close to a six-year low, a sign that few investors may be left to propel further gains, Strategas Research Partners said. Short interest, or total number of shares sold short, fell to 168.8 billion on the New York Stock Exchange and the Nasdaq Stock Market at the end of December, as the Standard & Poor’s 500 Index capped the best quarterly return since September 2009, according to data compiled by Bloomberg. The proportion of respondents in the American Association of Individual Investors survey who expect the market to decline over the next six months reached 17.2 percent this month, down from 50 percent in August. Some analysts watch sentiment as a contrary indicator given that optimistic investors have already purchased shares, leaving less money to help drive prices higher.
The S&P 500 has jumped 18 percent from its October low as European leaders took steps to contain the region’s sovereign debt crisis and data showed the U.S. economy is improving.

Manufacturing in New York Fed Region Expands at Faster Pace Than Estimated (Source: Bloomberg)
Manufacturing in the New York region expanded in January at the fastest pace in nine months, reflecting improving orders, sales and employment. The Federal Reserve Bank of New York’s general economic index rose to 13.5, the highest level since April, from a revised 8.2 in December. That gauge exceeded the median forecast of 56 economists surveyed by Bloomberg News, which projected an increase to 11. Readings higher than zero signal expansion among companies in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. Factories may keep driving the economic expansion as they maintain production to meet household and business demand. At the same time, the financial crisis in Europe and a weaker euro may slow purchases of American-made goods.

China’s Slowest GDP Growth in 2 1/2-Years Boosts Scope for Easing: Economy (Source: Bloomberg)
China’s economy expanded at the slowest pace in 10 quarters as Europe’s debt crisis curbed export demand and the property market weakened, sustaining pressure on Premier Wen Jiabao to ease monetary policy. Gross domestic product rose 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said in Beijing today. Growth exceeded the 8.7 percent median of 26 estimates in a Bloomberg survey, staying above the 8 percent that signals a “soft landing” for China, according to SinoPac Financial Holdings Co., which correctly predicted the GDP number. Asian stocks rose on speculation policy makers will ease lending curbs and increase fiscal spending to bolster the world’s second-biggest economy. Liang Wengen, China’s richest man and chairman of Sany Heavy Industry Co., told Wen this month that construction-machinery demand is weak and called for more infrastructure investment.

China’s Quarterly Growth Far From ‘Hard Landing,’ Goldman’s O’Neill Says (Source: Bloomberg)
Jim O’Neill, the economist who coined the term BRIC a decade ago, said China’s fourth-quarter growth rate, while the slowest in more than two years, was stronger than many analysts had forecast and was a “blow” to those predicting a “hard landing” for the nation’s economy. China’s economy grew 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said yesterday in Beijing. That exceeded the 8.7 percent median estimate of 26 economists surveyed by Bloomberg News and is above the 8 percent that signals a “soft landing” for China, according to SinoPac Financial Holdings Co. O’Neill, chairman of Goldman Sachs Asset Management, said in an interview on Bloomberg Television’s “InsideTrack” with Erik Schatzker that if China grew at an annual rate of 7.5 percent this decade, as he forecast, it would contribute more to world growth in dollar terms than the U.S. and Europe combined.

Japanese Stocks Decline as Shipping Lines, Steelmakers Drop; Tepco Gains (Source: Bloomberg)
Japanese stocks edged lower after Fitch Ratings said Greece is insolvent. Shippers led declines on the Topix Index after cargo rates fell to a three-year low amid concern the debt crisis will weigh on demand. Nippon Yusen K.K. (9101), Japan’s biggest shipping line by sales, dropped 2.3 percent. JFE Holdings Inc. led declines among large steelmakers after the country’s biggest utility said it will raise power rates by almost a fifth. Tokyo Electric Power Co. advanced 1.5 percent. The Nikkei 225 Stock Average slipped 0.1 percent to 8,456.43 as of 9:32 a.m. in Tokyo. The broader Topix lost 0.3 percent to 729.73.

Singapore Exports Unexpectedly Rose on Boost from Pharmaceutical Shipments (Source: Bloomberg)
Singapore’s exports unexpectedly rose in December as pharmaceutical shipments surged, countering a drop in sales of electronics goods. Non-oil domestic exports climbed 9 percent from a year earlier, after a revised 1.4 percent increase in November, the island’s trade promotion agency said in a statement today. The median of 14 estimates in a Bloomberg News survey was for a 1.2 percent decline. The advance in overseas sales may be short-lived as Europe’s sovereign-debt crisis curbs demand for Asian goods, with purchasing managers’ indexes in export-dependent economies including Singapore and Taiwan signaling manufacturing is still contracting. Non-oil exports from Singapore may increase 3 percent to 5 percent this year, the trade promotion board said in November.

BOK Signals No Cut in South Korea Rates as Domestic Demand Counters Europe (Source: Bloomberg)
Bank of Korea Governor Kim Choong Soo said that South Korea’s interest rates are still below policy makers’ desired level and that discrepancy cannot be left for long. “We still think our monetary policy is accommodative --by that what I mean is that in the market there still exists a little excess liquidity,” Kim, 64, said in an interview at his office in Seoul today. “Our basic policy direction is to normalize our interest rates compatible with our demand pressures and pressures for inflation.” The BOK, which kept its benchmark rate at 3.25 percent unchanged four days ago, will need to proceed “cautiously” given instability in external economies, the governor said. At the same time, he predicted growth in South Korea, Asia’s fourth-largest economy, will be little changed this year compared with 2011 as domestic demand offsets an export slowdown.

Canada Retains Benchmark Rate at 1% Amid ‘More Modest’ Economic Recovery (Source: Bloomberg)
The Bank of Canada kept its main interest rate unchanged for an 11th consecutive meeting and said economic growth will be “more modest” amid a weaker outlook for the U.S. and Europe. The Ottawa-based central bank left the target for overnight loans between commercial banks at 1 percent, where it has been since September 2010, as forecast by all 26 economists surveyed by Bloomberg News. The rate pause is the longest since the central bank adopted the overnight target as its policy rate in 1994, and longer than the “conditional commitment” to hold it at 0.25 percent that lasted from April 2009 to June 2010. European governments are struggling to manage a fiscal crisis and U.S. growth will also be hampered by the need to pare debts, the Bank of Canada said today.

Inflation Slows to Six-Month Low of 4.2% as Fuel, Clothing Prices Abate (Source: Bloomberg)
U.K. inflation slowed in December to its weakest pace in six months as stores discounted clothing to boost sales and petrol prices fell, easing pressure on consumers amid concern the economy may already be back in recession. Consumer prices rose an annual 4.2 percent compared with 4.8 percent in November and a peak of 5.2 percent in September, the Office for National Statistics said today in London. It was the biggest drop in the inflation rate since April 2009, the depth of the last recession. Prices rose 0.4 percent on the month. The Bank of England forecasts inflation will slow sharply this year, providing relief to consumers as the European sovereign debt crisis and rising unemployment weigh on the recovery. Ernst & Young said yesterday a second recession may already be under way. The Bank of England will expand its 275 billion-pound ($423 billion) bond-buying program next month, economists at Citigroup Inc. and Nomura International predict.

Euro Rescue Fund Sells Bills ‘Smoothly’ After S&P Credit Rating Downgrade (Source: Bloomberg)
The European Financial Stability Facility issued six-month debt for the first time, selling 1.5 billion euros ($1.9 billion) of securities a day after the euro region’s temporary bailout fund lost its top credit rating. The EFSF sold the 182-day bills at an average yield of 0.2664 percent, it said in a statement. Investors bid for 3.1 times the amount of bills sold, little changed from the 3.2 bid- to-cover ratio at a Dec. 13 offering of three-month bills. The facility’s longer-dated bonds underperformed their euro-area peers after the Standard & Poor’s downgrade to AA+ from AAA. “The fact that the bill auction has gone so smoothly is encouraging,” said John Davies, a fixed-income strategist at WestLB AG in London. “The much bigger hurdle will be when, say, the EFSF comes to market with a five-year bond.”

20120118 0945 Global Commodities Related News.

Commodities Rise Most in Two Weeks Amid Speculation China May Ease Policy (Source: Bloomberg)
Commodities rose the most in two weeks amid speculation that China may ease monetary policy, boosting prospects for raw-material demand, after its economy expanded at the slowest pace in more than two years. The Standard & Poor’s GSCI Spot Index (SPGSCI) of 24 raw materials climbed 1.2 percent to settle at 659.56 at 3:43 p.m. New York time, the biggest gain since Jan. 3. A gauge of industrial metals rose to an 11-week high, leading the rally. Commodities have advanced 15 percent from a 10-month low on Oct. 4. Copper, crude oil and gold may rally this year as economic growth in China and the U.S. counter the impact of a European recession, Goldman Sachs Group Inc. said last week. “More and more market players believe that China will implement further monetary-easing measures,” Eugen Weinberg, the head of commodity research at Commerzbank AG in Frankfurt, said today in a report. “This is giving considerable buoyancy to metal prices.”

Soybeans, Corn Advance as China May Ease Policy After Slowdown in Growth (Source: Bloomberg)
Soybeans and corn advanced for the first time in a week on speculation that China will ease monetary policy after the economy expanded at its slowest pace in 10 quarters, potentially boosting demand for raw materials. China’s gross domestic product rose 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said today. Analysts surveyed by Bloomberg expected 8.7 percent growth. China may ease lending curbs and increase spending to bolster the world’s second-biggest economy, boosting demand for grains and oilseeds, said Gary Mead, an analyst at VM Group. “This must be a reaction to China’s GDP being about what people thought it would be,” Mead said by phone from London today. “China’s tight monetary policy might be eased and therefore Chinese demand will begin to rise.”

US corn, soy rebound as Argentine drought worsens
SINGAPORE, Jan 17 (Reuters) - U.S. corn and soybeans bounced back, rising around 1 percent from multi-week lows with support from renewed concerns over forecasts of dry weather in Argentina and Brazil in coming days.
"On the fundamental front, we believe there is more upside  as we are likely to see some bargain-hunting after last week's selloff," said Lynette Tan, an analyst with Phillip Futures in Singapore.

Drought damages 33 pct of Ukraine winter grain crops
KIEV, Jan 17 (Reuters) - About a third of Ukraine's winter grain crops are in poor condition as of mid-January due to a severe drought that hit the country during sowing, analyst UkrAgroConsult said on Tuesday.
Some 83.3 percent of the sown area had sprouted, the consultancy said in a report. That is down from more than 90 percent at the same date a year earlier.

Little rain this week for parched Argentine corn
BUENOS AIRES, Jan 16 (Reuters) - Argentina's drought will worsen this week, local meteorologists said Monday, dashing hopes that rain in the days ahead might be strong enough to revive parched corn and soy fields.
Weeks of unforgiving Southern Hemisphere summer sun have toasted grains fields in the world's No. 2 corn-exporting country, killing expectations that Argentina might replenish global corn supplies depleted by a lackluster U.S. harvest.  

Ukraine grain traders see exports at 2 mln T/mth
KIEV, Jan 16 (Reuters) -    Ukraine will export about 2 million tonnes of grain a month for the remainder of the current marketing season, local traders' union UZA said on Monday.
"This means (exports of) 20-21 million tonnes for the whole season," UZA head Volodymyr Klymenko told a news conference.

Black Sea July-Dec grain exports at 30.7 mln T
KIEV, Jan 16 (Reuters) - Leading grain producers of the Black Sea region - Russia, Ukraine and Kazakhstan - exported 30.7 million tonnes of grain in the first half of the 2011/12 season and could export 28.5 million more by the end, an industry analyst said on Monday.
Kiev-based ProAgro consultancy said in a report that the three top grain producers in the region had an exportable surplus of about 67 million tonnes this season.

Asian hunger for U.S. "noodle" wheat may bolster prices
SINGAPORE, Jan 17 (Reuters) - For the second straight year, Asia must rely on the United States and Canada for most of its top-quality wheat, as rains have cut the protein content in grain from traditional supplier Australia.
Asian nations are among the world's biggest buyers of the superior quality, protein-rich wheat that is used to make noodles, a staple food across the region. This hunger could support prices on the Minneapolis Grain Exchange , and widen spreads with the lower-grade soft wheat traded in Chicago.

Barry CEO sees better demand, stable cocoa prices
ZURICH, Jan 17 (Reuters) - Demand for chocolate is improving by the month, even in the more difficult markets of Southern Europe, the chief executive of chocolate-maker Barry Callebaut  said in an interview on Tuesday.
The chocolate industry is grappling with slowing consumer demand as consumers in debt-crisis shaken Europe and in North America tighten their belts.

ICE sugar, coffee edge up on softer dollar
LONDON, Jan 17 (Reuters) - Raw sugar and arabica coffee futures on ICE were slightly higher in early trade, boosted by a weaker dollar and increased risk appetite following better-than-expected Chinese economic growth data.  Raw sugar futures rose in early trade to the highest level in nearly two weeks.

Indonesia coffee exports up 14 pct in 2012 -industry
JAKARTA, Jan 17 (Reuters) - Coffee exports from Indonesia, the world's third largest producer, will climb 14.3 percent to 400,000 tonnes this year, the Indonesia Coffee Exporters and Industries Association (AEKI) said on Tuesday.
"It is difficult to predict our coffee exports in 2012 because weather conditions now have a big impact on the coffee harvest and output," said Suyanto Husein, AEKI chairman. "We expect we could export 400,000 tonnes of coffee in 2012."

Cameroon cocoa exports at end-Dec down 11 pct yr/yr
YAOUNDE, Jan 17 (Reuters) - Cameroon exported 131,989 tonnes of cocoa by the end of December since the season started in August, according to data from the National Cocoa and Coffee Board (NCCB) sent to Reuters on Tuesday.
That is down about 11 percent from the 148,973 tonnes exported by the world's No. 5 cocoa grower during the same period a year earlier, according to the figures.
The central African state exported 32,541 tonnes in December, down from 39,928 tonnes in December 2010, the NCCB said. It revised its November 2011 figure to 34,511 tonnes from 41,410 tonnes.

Colombia 2011 coffee output lowest in over 30 yrs
BOGOTA, Jan 16 (Reuters) - Colombia's coffee output dropped to 7.8 million 60-kg bags in 2011, down 12 percent versus 2010 and the worst year in more than three decades, the growers' federation said on Monday.
The world's top producer of high-quality Arabica beans posted a third consecutive year of lower-than-expected coffee production in 2011 as bad weather, fungus and a tree renovation program keep output below historic averages of 11 million 60-kg bags.

ICO raises estimate for 2011/12 global coffee crop
LONDON, Jan 16 (Reuters) - The International Coffee Organization on Monday raised its estimate of the global coffee crop in 2011/12 to 132.4 million 60 kg bags as Ethiopia overtook Colombia as the world's number three producer.
The crop was revised up from a previous forecast of 128.6 million, largely reflecting an improved outlook in Ethiopia. It remained, however, shy of the prior season's 134.2 million bags.

Strong harmattan winds damage Ivorian cocoa -farmers
ABIDJAN, Jan 16 (Reuters) - Strong harmattan winds and dry weather in most of Ivory Coast's cocoa growing regions, which have hurt development of the main crop, could also harm its mid crop, farmers in the top producing country said on Monday.
Ivorian farmers are currently harvesting the main seasonal cocoa crop, which runs from October to March. Some moisture and spells of sunshine around this period are necessary for a good size and quality of the crop and to ensure a strong start for the mid crop.

Crude Rises a Second Day in New York as Reports Boost Economic Optimism (Source: Bloomberg)
Oil gained a second day as signs of improvement in the U.S. and German economies boosted speculation demand may rise and Iran advised Saudi Arabia to be ``wise'' in its approach to supplying more crude if sanctions are placed on Iranian supplies. Futures rose as much as 0.6 percent after climbing 2 percent yesterday. A U.S. Federal Reserve report showed manufacturing in the New York region expanded at the fastest pace in nine months, while German investor confidence jumped the most on record. Iran’s Foreign Minister called on Saudi Arabia to be “wise and responsible in their approach” after the kingdom said it could make up any loss of output. Citigroup Inc. raised its forecast for Brent to $110 a barrel this year.
Crude for February delivery increased as much as 57 cents to $101.24 a barrel in electronic trading on the New York Mercantile Exchange. It was at $101.27 at 10:58 a.m. Sydney time. The contract yesterday advanced $2.01 to $100.71, the highest since Jan. 11. Floor trading was closed Jan. 16 for the Martin Luther King Jr. holiday and electronic trades were booked with yesterday’s for settlement purposes.

Oil up above $112 on China data, weak dollar
LONDON, Jan 17 (Reuters) - Oil prices rose above $112 supported by a weaker dollar and on expectations of steady demand growth after China, the world's second-largest oil consumer, posted stronger-than-expected economic growth.  
"There is general positive market sentiment today - it's not just oil which is up today, it is almost everything," said Carsten Fritsch, an oil analyst at Commerzbank in Frankfurt.

March Pacific crude exports to rise on higher output
SINGAPORE, Jan 17 (Reuters) - Sweet crude and condensate exports from Australia, Papua New Guinea and East Timor are likely
to rise in March from the previous month although a cyclone season in the region may disrupt supply, traders said on Tuesday.
A total of 22-23 cargoes will be available for loading in March, up from the 20 cargoes seen in the previous month as the
production period is longer while a cargo was rolled over, preliminary estimates show.

BALTIC EXCHANGE FALL EXTENDS, MARKET REMAINS DIM
Dec 23 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, slid on Friday to its lowest in about 14 weeks weighed down by low fixing activity in a quiet period.
The index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, dipped 49 points or 2.74 percent to 1738 points.

20120118 0944 Soy Oil & Palm Oil Related News.

Palm oil bounces on S. American weather concerns
SINGAPORE, Jan 17 (Reuters) - Malaysian crude palm oil futures bounced back, as concerns over dry weather forecast in Argentina and Brazil that could potentially tighten soyoil supplies offset investor fears about the euro zone debt crisis.
"It looks like the dry spell is back in South America, however weak technicals and still lagging exports are likely to limit the upside here," said a dealer with a foreign commodities brokerage in Malaysia.  

Brazil's Rio G. Do Sul braces for more dryness after rains
SAO PAULO, Jan 16 (Reuters) - Heavy rains over the weekend brought relief to southern Brazil's drought-hit grains regions, but dryness looks set to resume and blight key soy areas in Rio Grande do Sul until at least the end of the month, forecasters said on Monday.
Hot, dry weather stemming from the La Nina weather phenomenon has toasted soy and corn crops in Brazil, the world's second-largest soy producer, and boosted soy prices in Chicago.