Wednesday, November 30, 2011

Trader's Highlight

DOW JONES-NEW YORK, Nov 29 (Reuters) - The Dow and S&P 500 advanced for a second day on Tuesday as stronger-than-expected consumer confidence data and hopes for further progress on a solution to Europe's fiscal mess bolstered sentiment.

However, in a sign investors are still nervous about the European debt crisis, defensive sectors such as utilities and consumer staples were among the best performers. The Nasdaq composite index also closed lower.

The Dow Jones industrial average <.DJI> was up 32.62 points, or 0.28 percent, at 11,555.63. The Standard & Poor's 500 Index <.SPX> was up 2.64 points, or 0.22 percent, at 1,195.19. The Nasdaq composite index <.IXIC> was down 11.83 points, or 0.47 percent, at 2,515.51.

NYMEX-NEW YORK, Nov 29 (Reuters) - U.S. crude oil futures pared gains in post-settlement trading on Tuesday after industry data showed that domestic crude inventories rose 3.4 million barrels last week, against the forecast for a small stock drawdown.

The dollar fell against the euro, encouraging buying of riskier assets such as oil and copper, on speculation the European Central Bank could lend money to the International Monetary Fund which could then help Italy deal with its debt troubles.

On the New York Mercantile Exchange, U.S. crude for January settled at $99.79 a barrel, rising $1.58, or 1.61 percent, after trading between $97.23 to $100.15.

CBOT-SOYBEANS, Chicago Board of Trade soybean futures closed higher on bargain buying, a weak dollar, firm crude oil and gains in equities.

Traders said soybeans got a lift from increased optimism about the euro zone debt crisis but there was caution after Fitch Ratings warned that it may downgrade U.S. debt ratings.

FCPO-KUALA LUMPUR, Nov 29 (Reuters) - Malaysian palm oil futures slipped on Tuesday on concerns of slower demand, although prospects of erratic weather hurting production limited losses.

Traders shifted their focus from the euro zone debt crisis to prospects of weaker demand as refined palm oil products narrowed their discount to South American soyoil to $28 per tonne, the lowest in six months.

Benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange closed 0.2 percent lower at 3,062 ringgit ($958) per tonne. Prices fell as low as 3,054, just a whisker away from a two-week low hit on Friday.

Traders are expecting a slow week as industry players attend the Indonesian Palm Oil Conference and Price Outlook 2012 on the island of Bali. Industry analysts, including Dorab Mistry and James Fry, present their views on Friday.

REGIONAL EQUITIES-Nov 29 (Reuters) - Banking shares helped boost stock markets in Indonesia, Malaysia, and Thailand on Tuesday on hopes for euro zone recovery but others fell as investors cautiously waited to see strong steps taken in Europe.

Optimism over euro zone recovery hopes has been eroding with investors stayed in the sidelines as Europe's finance ministers try to agree on how to bolster the European Financial Stability Facility bailout fund in a bid to stem contagion in bond markets.

Malaysia, which was closed on Monday for a holiday, saw financials AMMB Holdings Bhd and CIMB Group Holdings Bhd , considered proxies of the broader market, jumping 5 percent and 4.6 percent respectively.

Tuesday, November 29, 2011

Trader's Highlight

DOW JONES-NEW YORK, Nov 28 (Reuters) - U.S. stocks rebounded from seven days of losses on Monday as investors used the latest effort from European leaders to resolve the region's debt crisis as an opportunity to cover short positions.

Trading was light, a sign skepticism remains high. Just 6.8 billion shares changed hands during the day on U.S. exchanges, below the daily average of 8 billion shares.

The Dow Jones industrial average <.DJI> was up 291.23 points, or 2.59 percent, at 11,523.01. The Standard & Poor's 500 Index <.SPX> was up 33.88 points, or 2.92 percent, at 1,192.55. The Nasdaq Composite Index <.IXIC> was up 85.83 points, or 3.52 percent, at 2,527.34.

NYMEX-NEW YORK, Nov 28 (Reuters) - U.S. crude oil futures rose on Monday as fresh optimism that Europe's debt crisis would be contained and robust U.S. Thanksgiving weekend retail sales augured well for economic gains that could lift oil demand.

Geopolitical tensions tied to Iran's nuclear program and the threat of further sanctions by western governments against Tehran underpinned the day's price surge.

On the New York Mercantile Exchange, crude for January delivery settled at $98.21 a barrel, gaining $1.44, or 1.49 percent, after trading between $97.13 to $100.74.

CBOT-SOYBEANS, Soybean futures on the Chicago Board of Trade rose about 1.5 percent by the closing bell, rebounding from last week's slide to a 13-month low as the dollar softened on optimism about the euro zone debt crisis, traders said.

The dollar fell on hopes of progress on the sovereign debt crisis ahead of a European Union summit next week. A weak dollar makes dollar-denominated grains more competitive globally.

Soybeans were seen as oversold and due for a bounce after the spot January contract dipped to $11.02-3/4 per bushel last week, the lowest spot price since October 2010.

FCPO-SINGAPORE, Nov 25 (Reuters) - Malaysian palm oil futures hit a fresh two-week low on Friday as weak global economic sentiment overshadowed slowing production caused by seasonal decline in yields and La-Nina driven rains.

Fears of a slowing global growth and a worsening euro debt crisis have seen palm oil futures notch five straight sessions of losses. An ongoing market correction played a part in the declines.

At closing, benchmark February palm oil futures on the Bursa Malaysia Derivatives Exchange dropped 1.2 percent to 3,069 ringgit ($964) per tonne. Prices fell as low as 3,050 ringgit, a level last seen on Nov. 10.

REGIONAL EQUITIES-Nov 28 (Reuters) - Major Southeast Asian markets gained on Monday in thin trade led by commodities as investors cautiously bought into risky assets on hopes euro zone leaders would unveil fresh measures to resolve their debt crisis.

However, analysts said most investors will be in a wait-and- see mood after the International Monetary Fund denied an Italian media report of it having talks with Italy about a bailout package worth up to 600 billion euro.

In Singapore, property firms helped boost the market with property developers CapitaLand and City Developments rising 4.1 percent and 5.8 percent respectively.

CapitaLand shares were boosted by a local newspaper report saying it may place its $5.3 billion projects in China into a real estate investment trust (REIT).