DJI - NEW YORK, March 20 (Reuters) - U.S.
stocks climbed on Wednesday, with the S&P 500 snapping a three-day losing
streak as the Federal Reserve reassured investors that it would keep supporting
the economy.
The housing sector's stocks ranked
among the best performers after Lennar Corp reported a first-quarter profit well above analysts' expectations as lower
interest rates and rising rents increased home sales.
The Dow hit an intraday record high
but fell short of closing at another record. The view that the Fed will keep
interest rates at record lows for years has helped drive the rally in stocks
this year, along with signs of a strengthening U.S. recovery.
In its statement, the Fed said it
would stick to its $85 billion monthly bond-buying stimulus, citing still high
unemployment levels, but said it would take into account the possible risks of
its policies.
The statement, and comments by Fed
Chairman Ben Bernanke, came as the market grapples with banking woes in Cyprus,
the most recent flare-up in the euro-zone debt crisis.
"It is amazing what a Fed on
your side really brings for this market... It really can wipe out a lot of
uncertainty and a lot of bad news," said Burt White, managing director and
chief investment officer of LPL Financial in Boston.
Cypriot leaders held crisis talks on
Wednesday to avoid a financial meltdown a day after the country's parliament
rejected a tax on bank deposits, which had been proposed over the weekend by
European Union officials.
Investors worry that a collapse of
the banking system in Cyprus will tighten credit across Europe and become
another hurdle in the region's bumpy road out of economic crisis.
The Dow Jones industrial average gained 55.91 points, or 0.39 percent, to end at 14,511.73, after rising as high
as 14,546.82, an intraday record.
The Standard & Poor's 500 Index rose 10.37 points, or 0.67 percent, to finish at 1,558.71. The Nasdaq Composite
Index climbed 25.09 points, or 0.78 percent, to
close at 3,254.19.
"You might have thought the
markets would do horribly after the Cyprus parliament vote, but I think that
was a good step forward," said Cam Albright, director of asset allocation
for Wilmington Trust Investment Advisors in Wilmington, Delaware.
Brent and Crude Oil - NEW YORK, March 20 (Reuters) - Brent
crude oil rose above $108 a barrel on Wednesday, recovering from a three-month
low, after the U.S. Federal Reserve signalled it would continue its stimulus
programs and on optimism that European policymakers can keep a debt crisis in
Cyprus from spreading.
The Federal Reserve wrapped up a
two-day meeting on Wednesday by pressing forward with its aggressive efforts to
stimulate the U.S. economy, saying it would take into account risks posed by
its policies but also how much progress it was making lowering unemployment.
Cyprus was seeking a new loan from
Russia to avert a financial meltdown, after the island's parliament rejected
the terms of a European Union bailout, raising the risk of default and a bank
crash.
Brent crude for May rose $1.27 to settle at $108.72 a barrel. It had dropped nearly 2 percent to a
three-month low on Tuesday. U.S. crude for April rose 80 cents to $92.96 per barrel.
"Clearly, market players
anticipate that an alternative solution will be found for Cyprus," said
Carsten Fritsch, analyst at Commerzbank. "Nonetheless, the uncertainty
surrounding this issue is likely to continue to keep oil prices in check in the
short run."
Oil prices also rose on Wednesday in
the hours after the U.S. Energy Information Administration said crude stocks
fell by 1.3 million barrels last week, rather than the 2.0 million-barrel increase
analysts had expected. The report showed a drop in U.S. crude imports.
"We saw a drawdown in crude,
which was a little surprise and would be supportive (for oil prices),"
said Phil Flynn, analyst at Price Futures Group in Chicago.
The EIA report also showed declines
in U.S. gasoline and distillate fuel stocks, although these were smaller than
analysts expected.
On the price charts, Brent faces its
first upward resistance point at $108.50, said Olivier Jakob, oil analyst at
Petromatrix. Support levels to watch on Wednesday are $107.50 and then 107.00,
he said.
The uncertainty about Cyprus's
finances has revived concern about the stability of the euro zone and of the
downside risks to global economic growth.
The U.S. dollar weakened by 0.3
percent on Wednesday against a basket of foreign currencies A weaker dollar tends to support the price of oil and other dollar-denominated
commodities.
CBOT Soybean - March 20 (Reuters) - Soybean futures on the Chicago Board of Trade ended higher, halting a six-session decline on technical buying and
concerns about tight U.S. supplies, traders said.
* Nearby contracts led the gains, with May and July soybeans rising to intraday highs toward the
closing bell.
·
Nearbys
supported by ongoing concerns about logistics problems
in Brazil that have slowed the movement of a likely record-large
soy harvest into marketing channels.
·
Firm U.S.
cash market lends support; soybean basis bids firmed at
several Midwest processing sites.
·
Gains in
deferred contracts were limited by private estimates
for increased U.S. soybean plantings in 2013. Crop forecaster
Lanworth projected 2013 seedings at a record-large 81.3
million acres.
·
May
soybeans gained against July on spreads for a
second session, after losing ground for the previous five sessions.
·
Lanworth
raised its soybean production forecasts for Argentina
to 50.5 million tonnes from 49.4 million, and Brazil to 81.1
million tonnes from 80.8 million.
·
Malaysian
palm oil futures rose to the highest level in more than
a week on higher export demand, although gains were curbed
after Cyprus's rejection of a proposed bailout plan led to worries of a default.
BMD CPO - SINGAPORE, March 20 (Reuters) -
Malaysian palm oil futures rose to the highest in more than a week on Wednesday
on higher export demand, although gains were curbed after Cyprus's rejection of
a proposed bailout plan led to worries of a default.
Cyprus's parliament voted against
assessing a levy on bank deposits as a condition for a European bailout on
Tuesday, throwing international efforts to save the latest casualty of the euro
zone debt crisis into disarray.
But palm prices were lifted by
Malaysian palm oil exports that rose 11 percent for the March 1-20 period to
927,665 tonnes, up from 835,612 tonnes a month ago, according to cargo surveyor
Intertek Testing Services.
Another cargo surveyor, Societe
Generale de Surveillance, reported a 14 percent increase for the same period.
"If exports continue at this
rate, we will see a figure of around 1.4-1.5 million tonnes for the full
month," said a trader with a foreign commodities brokerage in Malaysia.
"Stocks will come down even more and this trend may continue into
April."
The benchmark June contract on the Bursa Malaysia Derivatives Exchange gained 1.1 percent to 2,441 ringgit
($782) per tonne, below its intraday high at 2,448 ringgit, a level last seen a
week ago on March 11.
Total traded volume stood at 48,190
lots of 25 tonnes each, almost twice the usual 25,000 lots.
Refined palm olein exports nearly
doubled in the March 1-20 period, offsetting a decline in crude palm oil
shipments and leading to higher overall exports, cargo surveyor data showed.
Market participants are counting on
rising exports and seasonally slower production to pull down Malaysia's
inventory levels. Stocks reached a record 2.63 million tonnes in December but
have been gradually easing since then, dropping to 2.44 million tonnes by the
end of February.
In other markets, Brent crude rose
towards $108 a barrel on Wednesday, recovering from a three-month low, on hopes
the United States would continue with its stimulus programme and that Europe
would reach a last-minute deal to bail out Cyprus.
In other vegetable oil markets, U.S.
soyoil for May delivery gained 0.3 percent in late Asian trade. The
most-active September soybean oil contract on the Dalian Commodities Exchange lost 0.1 percent.
Regional Equities - March 20 (Reuters) - Main Southeast
Asian stocks ended weaker on Wednesday, led by Thailand on fears that the
financial crisis in Cyprus could spread to other European countries after a
bailout plan for the island nation fell into disarray.
However, losses were capped by late
buying on hopes Cyprus might avert a financial meltdown as its leaders held
talks to prevent a crisis after the country's parliament rejected the terms of
the European Union bailout.
Thailand fell for a third straight session, losing 1.6 percent to hit its lowest since
March 4. It has fallen 3.4 percent in the week. Banks lead the fall with a 4.2
percent drop in Kasikornbank PCL and 3.3 percent loss in Siam Commercial Bank PCL
The Philippines lost 0.1 percent, led by holding firms to a near seven-week low, falling for an
eighth straight session. It has lost 6.5 percent since hitting an all-time high
of 6,867.10 on March 11.
Singapore lost 0.6 percent to a two-week low, led by a 2.3 percent fall in Singapore
Telecommunications Ltd.
However, Malaysia gained 0.4 percent, while Vietnam jumped 1.4 percent to a one-month high on rate cut hopes and credit growth.
Indonesia edged up 0.2 percent to a one-week high.
