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Oct 18

COMMODITIES-Gold, copper slide on worries over China, Europe


* Brent oil weaker, U.S. crude edges higher after U.S. data* Chinese economic growth slows, more concern over Euro debt (Recasts, adds quotes, updates prices, previous KUALA LUMPUR)LONDON, Oct 18 (Reuters) - Copper and gold slid on Tuesday after China’s growth slowed and worries deepened over the euro debt crisis, but better than expected U.S. data helped markets pare losses.Most commodity markets extended Monday’s losses, hurt by a stronger dollar and delays in finding a solution to the euro zone crisis that heightened concerns that the global economy will slip into a recession.Gold was set for its largest one-day fall in two weeks and copper shed nearly 4 percent at one point while losses in Brent crude oil were more muted.Better-than-expected September U.S. producer prices, which rose at the fastest pace in five months, trimmed the dollar’s gains and helped U.S. crude to break into positive territory.Other news was largely negative.Data showed that China’s economic expansion eased slightly in the third quarter to its slowest pace since the second quarter of 2009.”Fundamentally, demand from China will not collapse but growth will be slower,” said Yao Wei, a Hong Kong-based economist at Societe Generale.Germany warned on Monday a summit of European Union leaders next Sunday would not produce a miracle cure for the euro zone’s sovereign debt crisis, quashing expectations of a breakthrough.”The comment from Germany put metals on the defensive, and overnight the market was disappointed by the Chinese numbers. Although they weren’t far away from forecasts, it hasn’t helped,” BNP Paribas analyst Stephen Briggs said.Sentiment was further dented when Moody’s Investor Services warned France’s top-notch credit rating could be at risk if the cost of bailing out banks stretches its budget too much.Adding to the jitters were results from the biggest U.S. investment bank Goldman Sachs, which reported a quarterly loss for the second time in its history as a public company.GOLD TO BOUNCE?Gold slid as much as 2.7 percent to a low of $1,626.19 per ounce, but traders and analysts said they expected the precious metal to reprise its role as a safe-haven investment and rally in price.The price hit a record $1,920.30 in early September.”People are nervous and … will take any excuse to sell, but having said that, investors are on the other side and bargain-hunters are on the other side so they will be jumping on the bandwagon again once the price finds a level,” said MKS Finance head of trading Afshin Nabavi.Gold is still set for a near-17 percent gain so far this year, driven by expectations for low interest rates in the U.S. and by investor demand for perceived safe havens in the face of turmoil in Europe and rising inflation in the emerging world.LME copper lost as much as 3.7 percent to a low of $7,215 a tonne, after dropping 0.7 percent in the previous session.Supply disruptions caused by strikes at two Freeport-McMoran Copper & Gold mines, including one of the world’s largest copper mines in Indonesia, helped keep a floor under copper prices, which had pared losses to around 2 percent in European afternoon trading.The red metal has shed almost a quarter of their value so far this year.OIL MIXEDThe oil market was mixed. Brent crude LCOc1 fell 0.4 percent to $109.70 a barrel, after falling to as low as $108.45 but U.S. crude CLc1 broke into positive territory, gaining 0.7 percent to $87 a barrel.Oil prices were supported by lower Angolan crude production expected in December.Angola will export around 1.69 million barrels a day of crude oil in December, trade sources said on Monday, down from 1.84 million barrels a day originally scheduled to load in November.In agricultural markets, soybean and corn futures were dragged down by renewed worries about the global economy chilling demand for grain as well as an active harvest of the U.S. crop.Cocoa futures fell to their lowest level in more than two years, tracking broad-based weakness other commodity markets.Arabica coffee futures also slid, while raw sugar futures edged lower, with the market consolidating after a steep rise during the last few days.

Posted 7 months ago

COMMODITIESGold, copper, slide, on, worries, over, China, Europe,

Oct 13

UPDATE 1-Japan calls for big scheme to help Europe banks at G20


TOKYO Oct 14 (Reuters) - Japan will urge its European partners at a Group of 20 summit this week to support the continent’s banks with a big-scale scheme, including the European Financial Stability Facility, Finance Minister Jun Azumi said on FridayG20 finance chiefs and central bank heads, who will meet in Paris, will be pressed to find a convincing solution to the deepening euro zone debt crisis, which has fanned fears of a global slide into recession.Speaking to reporters just before leaving for the weekend G20 meeting , Azumi said wanted to share Japan’s “bitter experience” of failing to contain its banking crisis in the 1990s by doing too little, too late.”The lesson we learned from our failure to deal with non- performing loans was that we had underestimated” the scope of such debts, Azumi said.”We had a bitter experience of causing a delay in resolving the problems by acting little by little.”Azumi repeated that he would consult with the United States as needed on how to help Europe tackle its debt crisis.But Azumi said he would first wait to see what kind of a crisis resolution plan European leaders could come up with at an Oct. 23 European Union summit.”It would be another matter whether Japan and the United States would provide money (to Europe’s rescue scheme). But we will respond while consulting with the U.S. as needed, after Europe comes up with its own solutions.”“We want to hear what the U.S. is thinking about Europe,” Azumi said, expressing a desire to meet U.S. Treasury Secretary Timothy Geithner at the G20 meeting.Brazilian Finance Minister Guido Mantega said this week he expected G20 nations to discuss extending further support to the International Monetary Fund to help manage the European debt crisis.But Azumi said he saw no need for such action now.”We must first hear from the IMF what roles it should play in the current situation. If it’s reasonable and the IMF cannot manage to finance it with its current funds, then I would consider,” Azumi said.”But at the moment, I wonder if there’s such need.”Azumi welcomed Slovakia’s ratification of new powers for the euro zone’s rescue fund on Thursday, the last country to do so, clearing the way for a bolder effort to arrest Europe’s sovereign debt crisis.”EU has taken a big step forward with ratification by the 17 countries. That has kept monetary union from losing its significance.”

Posted 7 months ago

UPDATE, 1Japan, calls, for, big, scheme, to, help, Europe, banks, at, G20,