SINGAPORE, May 7 (Reuters) - Oil hit multi-month lows and other commodities slid on Monday as French and Greek elections led to more uncertainty for an economically fragile region and fuelled a resurgence of bearish sentiment for risk assets that emerged after last week's U.S. jobs data. Analysts say more investors may bail out of risky assets if trade and output data in China due later this week confirm a slowdown in the world's No. 2 economy. "We're getting a perfect storm for bearish growth sentiment," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.
Sunday, May 6, 2012
Oil leads fall as French, Greek polls compound woes
SINGAPORE, May 7 (Reuters) - Oil hit multi-month lows and other commodities slid on Monday as French and Greek elections led to more uncertainty for an economically fragile region and fuelled a resurgence of bearish sentiment for risk assets that emerged after last week's U.S. jobs data. Analysts say more investors may bail out of risky assets if trade and output data in China due later this week confirm a slowdown in the world's No. 2 economy. "We're getting a perfect storm for bearish growth sentiment," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.
Early planting, lots of acres could mean record corn crop
Across the Corn Belt, the planting season is off to a roaring start. And with farmers expected to put in more acres of corn than they have since the Great Depression, this fall’s harvest could be one for the record books. Farmers like Bill Couser, who grows crops and raises cattle near Nevada in central Iowa, say it’s too early to predict whether this year’s harvest will set a record, but it’s looking pretty good right now.
Asia Stocks Post Biggest Drop in 6 Months as Euro Weakens
Asian stocks tumbled the most since November and the euro weakened to a three-month low after French Socialist Francois Hollande was elected President and U.S. employers added fewer jobs than forecast. Treasuries and the yen advanced, while commodities slid. The MSCI Asia Pacific Index (MXAP) sank 2.4 percent as of 1:30 p.m. in Tokyo. Standard & Poor’s 500 Index futures fell 1 percent. The euro lost 0.8 percent to $1.2979, while the yen rose against all of its major peers. Ten-year Treasury yields declined five basis points to 1.83 percent, while bond risk in Asia increased. The S&P GSCI Index of commodities dropped to the lowest level in four months and oil slumped as much as 3.2 percent in New York.
How to Invest in Bonds in 2012
Bond investors, pick your poison.Interest rates are pitifully low for old standbys like Treasurys and highly rated corporate bonds. But the risk factor increases so rapidly the more one tries to reach for higher returns that it is hard these days to know how to allocate fixed-income dollars.
Short honeymoon for Hollande after French election win
PARIS, May 7 (Reuters) - A victorious Francois Hollande faces a short honeymoon after his election as France's first left-wing president in 17 years, with financial markets eager for clear signals on his policies and how hard he plans to push back against German-led austerity. The moderate Socialist beat conservative Nicolas Sarkozy with 51.7 percent of Sunday's runoff vote after a bruising campaign dominated by the same anger over economic crisis that has felled 10 other European leaders since late 2009.
Stock futures hit after European elections
(Reuters) - Stock index futures fell after Greek voters trounced ruling parties in elections on Sunday, a result that put the country's future in the euro zone at risk, and as Socialist candidate Francois Hollande won the French presidency. S&P 500 futures were down 12.3 points at 1,350.20 at 7:35 p.m. EDT (2335 GMT), suggesting a fall of about 1 percent when the U.S. stock market opens on Monday.
End of Merkozy Leaves Franco-German Gulf as Greek Voters Rebel
Voters in Greece and France challenged austerity as Europe’s sole prescription for the financial crisis, adding pressure on German Chancellor Angela Merkel to broaden her focus from debt reduction to save the 17-nation bloc. Greek elections left the two biggest parties short of the clear majority to keep bailout efforts there on track. In France, Socialist Francois Hollande defeated President Nicolas Sarkozy, Merkel’s preferred partner for enforcing fiscal rigor.
Greek Election Gridlock Raises Risk for Bailout, Euro Future
Greece’s political leaders struggled to find the support needed to form a coalition government after voters flocked to anti-bailout parties, calling into question the country’s ability to impose the measures needed to guarantee its future in the euro. New Democracy won 20 percent of the total vote with more than 50 percent of the ballots from yesterday’s elections counted at 12:30 a.m., according to the Interior Ministry website. Socialist Pasok, which partnered with New Democracy in securing a second rescue package for the country, trailed in third place with 42 seats. Official projections predicted the two would fall one short of the 151 seats needed to win a majority.
Oil Falls to Four-Month Low on European Votes, U.S. Jobs
Oil fell to the lowest level in more than four months after European elections stoked speculation austerity efforts may be derailed and weaker-than-expected jobs data underscored concern the U.S. economy may falter. Futures slumped as much as 3.2 percent to the lowest intraday price since December 20, extending a 4 percent drop on May 4 after the Labor Department said U.S. payrolls rose by the least in six months. Euro-region services and manufacturing output contracted in April, separate data showed. Crude also slid after France elected Socialist Francois Hollande as president and Greek voters flocked to anti-bailout parties.
Euro Drops to 3-Month Low After Greek, French Elections
The euro fell to a three-month low after Socialist Francois Hollande was elected president of France and as Greek voters flocked to anti-bailout parties, stoking concern austerity efforts in Europe may be derailed. The 17-nation currency slid for a sixth day, its longest series of losses since September 2011, after German Chancellor Angela Merkel’s party had its worst election result in more than half a century in the state of Schleswig-Holstein. The yen and the dollar rose versus most of their major peers as Asian stocks extended a global rout, boosting demand for haven currencies.
European elections add to selling pressure
(Reuters) - After Wall Street's worst week of the year, U.S. stocks are facing more selling after elections in Europe swept aside leaders that had pursued strict budgetary reforms in the euro zone largely favored by investors.
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