DJI - NEW YORK, Feb 14 (Reuters) - Global
equity markets fell and the euro slid against the dollar on Thursday after data
showed the euro zone slipped deeper into recession in late 2012 than had been
expected, but deal-making helped Wall Street close near break-even.
U.S. weekly jobless data and a $23.2
billion bid in cash by Warren Buffett's Berkshire Hathaway and private equity firm 3G Capital for ketchup and baby food maker H.J. Heinz helped turn sentiment about Europe and trim equity losses.
The euro tumbled to a three-week low
against the dollar and plunged against the yen after data on gross domestic
product in the euro zone painted a dismal picture of the regional economy.
U.S. equities have struggled to
break above current levels where they have hovered for almost two weeks. The
benchmark S&P 500 is up more than 6 percent so far this year.
"While I'm not bearish, I don't
see many upside motivations at these levels," said Donald Selkin, chief
market strategist at National Securities in New York, who cited the low level
of the VIX as a sign the market was overbought.
"We need to digest some of our
gains to go higher, but people are so eager to buy on the dips that we're not
even seeing dips anymore. People are just chasing the market higher," said
Selkin, who helps oversee about $3 billion in assets.
The Dow Jones industrial average closed down 9.52 points, or 0.07 percent, at 13,973.39. The Standard & Poor's
500 Index rose 1.05 points, or 0.07 percent, at
1,521.38. The Nasdaq Composite Index added 1.78 points, or 0.06 percent, at 3,198.66.
"The only reason a company buys
another company is because they see an upside. Even though we are at multiyear
highs, this kind of activity shows that there is more room for a rally, feeding
optimism to the market," said Randy Frederick, director of trading and
derivatives at Charles Schwab.
Economic output in the euro zone
fell by 0.6 percent in the fourth quarter, EU statistics office Eurostat said,
while Germany contracted by 0.6 percent, marking its worst performance since
the global financial crisis was raging in 2009.
The downturn marked the currency
bloc's first full year in which no quarter produced growth, extending back to
1995. For the year as a whole, GDP fell by 0.5 percent.
Germany is expected to rebound but
the figures suggest the bloc as a whole could remain in recession in the first
quarter of this year, despite a recent jump in market sentiment as fears that
the currency bloc could fall apart have faded.
"The market has weakened
because of the GDP numbers," said Barclays commodities analyst Miswin
Mahesh. "It's been a macro sell-off this morning with the GDP numbers
coming out, rather than any fundamental move in itself. Most asset classes have
sold."
"The jobless claims numbers
were solid, and with the European market closing, the news out of Europe is
pretty much done for the day," Frederick said.
"A lot of companies, fearing
about the systemic risk, have been delaying investments for a long time,"
said Gilles Guibout, head of euro zone equities at AXA Investment Managers,
which has 554 billion euros ($739 billion) under management.
NYMEX - TOKYO, Feb 14 (Reuters) - U.S. crude
futures edged up to stay above $97 a barrel on Thursday, paring a 0.5 percent
decline a day earlier, helped by hopes for oil demand growth after a Reuters
poll showed that the euro zone is slowly starting to emerge from recession.
CBOT Soybean- Soybean futures on the Chicago Board of Trade fell on signs
of slowing U.S. export demand and improving crop weather in
South America, traders said.
· Beneficial rains expected over much of Argentina this week and this weekend should help relieve stressed crops, but more rain will be needed to ensure satisfactory crop output, the Commodity Weather Group said.
· In Brazil, rains in the next two weeks should help soybean crops in southern areas, while a drier pattern for the northwest soy areas next week should boost harvest progress
· USDA reported export sales of U.S. soybeans in the latest week at 235,900 tonnes (old and new crop years combined), including net cancellations of 109,100 tonnes for 2012/13 and sales of 345,000 tonnes for 2013/14. Trade expectations were for 700,000 to 1.1 million tonnes.
· USDA reported weekly export sales of soymeal at 132,400 tonnes and soyoil sales at 16,600 tonnes, both below a range of trade expectations.
· The Buenos Aires Grains Exchange left its outlook for Argentina's 2012/13 soybean harvest at 50 million tonnes, unchanged from its initial estimate a week ago but below USDA's current forecast for 53 million.
· Trade awaits monthly U.S. soybean crush data due Friday from the National Oilseed Processors Association. The average estimate for NOPA's January crush among analysts surveyed by Reuters was 159.5 million bushels.
FCPO - KUALA LUMPUR, Feb 14 (Reuters) -
Malaysian palm oil futures edged down to a two-week low on Thursday, as data
showed stockpiles in the world's No.2 producer remained high and on improving
weather in key soy-growing regions in South America.
Better South American weather would
contribute to an expected bumper crop in Brazil, poised to overtake the United
States as the No.1 soybean grower, adding pressure to the soybean market
tracked by palm oil.
January's palm oil end-stocks eased
off record levels and fell to 2.58 million tonnes, according to industry
regulator data, but the smaller-than-expected decline triggered some selling
pressure in the market.
"While good export news
continues to come in, nervousness about the large South American crop (and its
effect on prices), as well as the U.S. soybean market facing a seasonal slowdown
are pressuring the futures market," said a trader with a local commodities
brokerage in Malaysia.
"The end-stocks are still the
elephant in the room. Traders could be taking the end-stocks seriously and are
looking for opportunities to sell," the trader added.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange had edged down 0.3 percent to close
at 2,497 ringgit ($811) per tonne. Prices went as low as 2,490 ringgit, the
lowest level since Jan. 30.
Total traded volumes stood at 20,263
lots of 25 tonnes each, slightly lower than the average of 25,000 tonnes.
Cargo surveyor data showed
Malaysia's exports of palm oil products rose as much as 25 percent in the first
10 days of February on stronger demand from major buyers India, China, the
United States and Europe.
Traders will be looking out for Feb.
1-15 export data on Friday to further gauge demand trend of the tropical oil.
Analysts say seasonally slowing
production could see stockpiles in February easing another 4 percent on the
month to 2.48 million tonnes, but inventory levels are unlikely to dip below
the 2-million-tonne mark in the first quarter of 2013.
"This should keep crude palm
oil prices below 3,000 ringgit per tonne in the first quarter of 2013,"
said Kenanga Research analyst Alan Lim in Kuala Lumpur.
India's vegetable oil imports soared
27.4 percent from a month earlier to hit an all-time high in January on record
purchases of cheap palm oil from southeast Asia, a trade body said on Thursday,
despite a hike in import duties mid-month.
Oil prices rose on Thursday as fresh
tensions over Iran's nuclear programme revived global supply concerns,
offsetting weaker-than-expected growth data from France and Germany.
In competing vegetable oil markets,
U.S. soyoil for March delivery dropped 0.3 percent in late Asian trade. The Dalian Commodity Exchange is
closed for the Lunar New Year holidays and will resume trading on Monday.
Regional Equities - BANGKOK, Feb 14 (Reuters) -
Southeast Asian stock markets ended mixed on Thursday, with the Philippines
coming off an intraday record as reports of a landslide hit mining shares and
Indonesia closing at a record high, led by PT Bumi Resources Tbk
The Philippine main index ended 0.22 percent down at 6,513.41, hitting a peak of 6,542.51 at one point,
with shares in Semirara Mining Corp dropping 8 percent following reports of a landslide at its coal mine in central
Philippines.
Manila saw broad buying interest in
large caps, with Manila Electric Co and Ayala Corp among the gainers. The Philippines set a
record close for the fourth time this month on Wednesday as foreigners led
buyers.
Manila saw net foreign buying of
$160 million this month to Wednesday, trailing Indonesia's month-to-date net
foreign buying of $488 million and Malaysia's $195 million.
Jakarta's Composite Index rose 0.4 percent to 4,588.67, breaching Wednesday's 4,571.57 record finish.
Coal exporter Bumi surged 26.4 percent after it requested a takeover panel to
expedite inquiry into the creation of parent coal miner Bumi
The Thai stock market has lagged its
peers, seeing net foreign selling of $373 million this month. The benchmark SET
index climbed 0.8 percent to a fresh 18-year
closing high of 1,526.74.
