NYMEX - SINGAPORE, Feb 18 (Reuters) - U.S.
crude futures were steady on Monday after falling more than 1 percent in the
previous session following an unexpected dip in U.S. industrial production. Trading volumes are likely to be
lean with U.S. investors away for a public holiday.
FUNDAMENTALS
- U.S. crude for March delivery was off 12 cents at $95.74 a barrel by 0118 GMT. The contract dropped 1.5 percent on Friday.
- Brent crude edged up 22 cents to $117.88 a barrel, after posting its first weekly loss in five last week.
- U.S. industrial production unexpectedly fell in January, weighed down by weak manufacturing and mining, according to a report on Friday that was another sign of slow economic activity at the start of the year.
- Financial leaders from the world's 20 biggest economies may have promised not to devalue their currencies to help exports, but the pledge will do little to keep exchange rates stable.
- Saudi crude exports fell for the third month running in December, but the fall in shipments was less dramatic than a drop in oil production, official data showed.
- Syria's opposition coalition is ready to negotiate President Bashar al-Assad's exit with any member of his government who has not participated in his military crackdown on the uprising, coalition members said.
- U.S. manufacturing also got off to a tepid start as motor vehicle output tumbled in January, but a rebound in factory activity in New York state this month suggested any setback would be temporary.
FCPO - SINGAPORE, Feb 18 (Reuters) -
Malaysian palm oil futures gained on Monday, snapping three straight sessions
of losses, as investors expect strong export demand seen in the first half of
the month to reduce stocks.
Cargo surveyor data showed Malaysian
palm oil exports rose as much as 18 percent for Feb. 1-15 from a month ago,
raising hopes that stocks may ease from a record high of 2.58 million tonnes
hit in January.
"Exports were quite strong for
the first 15 days and production may come down again, so the market is
supported because of that," said a trader with a foreign commodities
brokerage in Kuala Lumpur.
"We may also see higher exports
of crude palm oil for this month before the 4.5 percent tax in March," the
trader said.
Malaysia, the world's No.2 palm oil
producer, said it will set its crude palm oil export tax for March at 4.5
percent, up from February's zero percent.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange had gained 1.3 percent to 2,539
ringgit ($820) per tonne by the day's close.
Total traded volumes stood at 46,985
lots of 25 tonnes each, almost double the average of 25,000 tonnes.
Technicals show mixed signals for
Malaysian palm oil as it is not clear how high the current rebound could go,
said Reuters market analyst Wang Tao.
While the higher export tax may hurt
Malaysia's crude palm oil export demand, the local processing industry may
benefit from a relatively cheaper feedstock, analysts said.
"We are neutral on the news as
it will be short-term negative for Malaysia crude palm oil demand but long-term
positive for Malaysia processed palm oil demand," Alan Lim Seong Chun,
research analyst with Malaysia's Kenanga Investment Bank, said in a note to
clients.
Brent crude rose slightly toward
$118 a barrel on Monday, underpinned by expectations of improving global growth
despite some weak U.S. data dampening prices at the end of last week. Tensions
in the Middle East also lent support.
In competing vegetable oil markets,
the most active September soybean oil contract on the Dalian Commodity Exchange inched down 1.2 percent in late Asian trade.
Markets in China resumed trading on Monday after a week-long Lunar New Year
break.
Regional Equities - BANGKOK, Feb 18 (Reuters) -
Southeast Asian stock markets closed mostly higher on Monday, with the
Philippines scaling a fresh peak as strong earnings lifted shopping mall
developer SM Prime Holdings Inc .
Thai index was bolstered by robust fourth-quarter economic numbers.
The Philippine index was up 0.67 percent at 6565.23, surpassing its last week's 6,527.99 record
close. Shares in SM Prime, which exceeded its 2012 profit growth target for a
second straight year, closed at a record high of 18.88 peso, up 3.2 percent.
Bangkok's SET index ended up 0.12 percent at 1,523.29.
The market saw selective buying in
consumer names such as CP All Pcl after stronger-than-expected fourth-quarter GDP numbers which also stemmed from
better-than-expected gains in private consumption.
Singapore edged up 0.15 percent at 3,288.14, led by a 1.5 percent gain in Olam
International Ltd
Indonesia ended nearly flat at 4,612.05, with coal miner Bumi Resources Tbk among outperformers.
Vietnamese stocks ended nearly unchanged at 493.95 in low volumes as most traders are yet
to return from a holiday.
Malaysian shares bucked the regional trend to fall 0.43 percent with financial shares such as
RHB Capital Bhd falling 1.4 percent.
Local retail investors and domestic
institutions sold shares worth a net 23.65 million ringgit ($7.64 million) and
9.91 million ringgit ($3.20 million) respectively, countering foreign net buying
on the day, the Malaysian bourse said.
FOREX - LONDON, Feb 18 (Reuters) - The euro
dipped against the dollar on Monday as European Central Bank president Mario
Draghi said the euro's appreciation added downside risks to inflation and
reiterated there were risks to the euro zone economic outlook.
Its drop was limited, however, with
traders still inclined to buy the currency on dips, especially against a
broadly weaker yen. The Japanese currency resumed broad falls after Japan
signalled it would push ahead with aggressive monetary easing, having escaped
criticism from G20 countries at the weekend.
But trading volumes were thin, with
U.S. markets closed for President's Day.
"Draghi's comments prompted a
bit of a dip in the euro but that just provided better levels to buy the
currency," said Jeremy Stretch, head of currency strategy at CIBC.
"There is still enough
justification to buy the euro on dips, helped in part by the gains in euro/yen
after the G20 seemingly gave the green light for countries to continue measures
which weaken their currencies."
Speaking before the European
Parliament, Draghi said the euro's exchange rate was not a policy target but
was important for growth and stability, adding that appreciation of the euro
"is a risk".
The euro has been under selling
pressure in the wake of data recently revealing a deeper-than-forecast euro
zone recession and on concerns about the outcome of an election in Italy at the
weekend.
