Dollar Makes Broad Gains

Dollar Makes Broad Gains - WSJ.com
The dollar gained against most major currencies as investors sought out safe havens while waiting for details from a two-day European summit geared toward resolving the region's financial crisis.
European Union leaders spent Thursday in Brussels seeking an agreement on how to help Spain and Italy deal with high borrowing costs.  Expectations were low heading into the summit, especially after previous gatherings had failed to produce breakthroughs. However, German Finance Minister Wolfgang Schäuble said in an ...

Oil Futures Drop Again on Renewed Fears About Euro Zone

Oil Futures Drop Again on Renewed Fears About Euro Zone - WSJ.com
U.S. oil futures tumbled sharply Thursday on renewed fears that this week's euro-zone summit would again fall short of resolving the crisis.  Nymex oil futures settled at $77.69 a barrel, down $2.52, or 3.1%.  The fall came as European leaders converged on Brussels for another summit to try to resolve that region's sovereign debt crisis. Germany's Finance Minister signaled somewhat greater willingness than before to endorse debt mutualization. At the same time, yields on Spanish and Italian bonds have risen in recent days.

Gold down over 1 pct on US healthcare ruling, Europe

PRECIOUS-Gold down over 1 pct on US healthcare ruling, Europe | Reuters

Gold fell more than 1 percent on Thursday, hit by worries of an economic slowdown after a U.S. Supreme Court ruling upheld a landmark healthcare law and by fading hopes that a European Union summit will resolve that region's debt crisis. Bullion investors were frustrated as it is unlikely that additional stimulus will come out of the summit beginning Thursday in Brussels, as European finance officials were working on urgent measures to ease market pressure on Spain and Italy, which are too big to bail out. Earlier in the session, gold extended losses as crude oil and U.S. equities tumbled after the Supreme Court upheld President Barack Obama's healthcare law, which assesses a financial penalty to individuals who do not obtain health insurance.

ICE sugar tumbles from 7-wk high, but premium soars

SOFTS-ICE sugar tumbles from 7-wk high, but premium soars | Agricultural Commodities | Reuters
Raw sugar futures on ICE hit a seven-week high and then tumbled on Thursday, as the market's volatility reached its highest in more than eight months as economic concerns pressured the market, while the premium of the soon-to-expire July contract vaulted. Coffee futures dropped more modestly on a combination of pressure from risk aversion among investors as a European summit began and on improved harvest weather in top grower Brazil. U.S. cocoa was little changed as it consolidated after a recent rally while Liffe cocoa bucked the day's trend and extended its gains with a lift from currency. July raw sugar futures on ICE dropped 0.21 cent, or 1 percent, to finish at 21.21 cents a lb, trading widely from 21.04 cents to 21.96 cents. October fell 0.42 cent, or 2 percent, to settle at 20.53 cents per lb, after hitting a seven-week high at 21.39 cents then tumbling to 20.21 cents.

Asian Currencies Gain on U.S. Data, China Stimulus Speculation

Asian Currencies Gain on U.S. Data, China Stimulus Speculation - Businessweek
Most Asian currencies gained after reports showed U.S. home sales and durable-goods orders topped economists’ estimates and on speculation China will take steps to spur its economy.   India’s rupee snapped a two-day loss and South Korea’s won climbed for a third day as the MSCI Asia-Pacific Index of regional shares rose the most in a week. Gains were limited before European Union leaders start a two-day meeting in Brussels. Banks including Citigroup Inc., Nomura Holdings Inc. and ING Groep NV are predicting the People’s Bank of China will cut banks’ reserve requirements again this year.  “With the good data out of the U.S. and gains in stocks, risk sentiment is quite stable now,” said Kozo Hasegawa, a Bangkok-based trader at Sumitomo Mitsui Banking Corp. “The currencies are likely to be quite range-bound before the results of the European summit come out.”

Copper ends down as EU summit anxiety weighs

Copper ends down as EU summit anxiety weighs | Reuters

Copper fell for the first time in four days on Thursday, on track for its worst quarterly performance since Q3 2011, as global growth prospects dimmed largely on the back of Europe's spiraling debt crisis.
Volumes slowed as pessimistic investors took to the sidelines in front of a European Union summit many fear will not succeed in easing the region's debt crisis that has eaten into metals demand and affected the global economy.

Corn eases first time in week on rain forecast

GRAINS-Corn eases first time in week on rain forecast | Reuters
U.S. corn fell for the first time in a week on Thursday as midday forecasts showed the chance of desperately needed rain in the parched U.S. Midwest growing region while book-squaring ahead of a key government crop report also pressured soybeans and wheat. The U.S. Agriculture Department will release its quarterly grain stocks and annual acreage estimates early on Friday and investors at the Chicago Board of Trade evened positions ahead of the reports that typically rile markets.

ICE sugar tumbles from 7-wk high, but premium soars

SOFTS-ICE sugar tumbles from 7-wk high, but premium soars | Agricultural Commodities | Reuters
Raw sugar futures on ICE hit a seven-week high and then tumbled o n T hursday, as the market's volatility reached its highest in more than eight months as economic concerns pressured the market, while the premium of the soon-to-expire July contract vaulted. Coffee futures dropped more modestly on a combination of pressure from risk aversion among investors as a European summit began and on improved harvest weather in top grower Brazil. U.S. cocoa was little changed as it consolidated after a recent rally while Liffe cocoa bucked the day's trend and extended its gains with a lift from currency.

Corn rises for 5th day on parched US crops

GRAINS-Corn rises for 5th day on parched US crops | Reuters
U.S. corn rose for the fifth straight session Thursday, extending its biggest rally since 2010, as drought deepened in the prime growing region the Midwest, baking the crop at its most critical stage of development. "Most of the weather forecasts keep the south pretty dry and the north pretty wet. The north being wet is OK but we need the rain down south and it doesn't look like we're going to get it," The Price Group grains analysts Jack Scoville said of the Midwest. Chicago Board of Trade December corn futures, the most-active contract at the exchange and the first to reflect the new-crop harvest, was up 6 cents at $6.39 a bushel. The contract has increased more than 15 percent this week, notching a nine-month high on Wednesday, but pared gains at midday as weather models showed a slightly better chance for rain while soybean and wheat futures drifted into the red.

Bonds up on safety bid during EU summit

Bonds up on safety bid during EU summit | Reuters

U.S. Treasuries prices rose on Thursday as a bid for safe havens proved a mainstay with European Union leaders beginning a summit divided over how to resolve the euro zone's debt crisis.  European finance officials worked on urgent steps to ease financial market pressure on Spain and Italy - Rome's benchmark 10-year borrowing costs hit a six-month high of 6.19 percent at auction on Thursday. But investors fear the summit will not produce remedies strong enough to calm investors' anxiety about the future of the euro.  The EU meeting begins with leaders clearly split. Spain and Italy say emergency steps are needed, but Germany has nixed the notion that the euro zone may soon issue common bonds.

Futures fall on summit skepticism, banks eyed

US STOCKS-Futures fall on summit skepticism, banks eyed | Reuters
U.S. stock index futures fell in thin, choppy trading on Thursday as investors were skeptical that the latest European Union summit would agree upon concrete measures to tackle the region's debt crisis.  Financial shares were in focus, with JPMorgan losing ground on a report that recent trading losses could reach $9 billion and Barclays stock down 12 percent in the aftermath of a probe into the manipulation of interbank lending rates.  EU leaders go into a meeting on Thursday more openly divided than at any time since the euro crisis began, with Germany's Chancellor Angela Merkel showing no sign of relenting in her refusal to back other countries' debts.

Oil Prices Hit Session Lows Amid Broader Selloff

OIL FUTURES: Oil Prices Hit Session Lows Amid Broader Selloff - WSJ.com
Oil futures tumbled Thursday along with broader markets amid dimming hopes for a summit of European leaders and worries over broader economic growth.  Light, sweet crude for August delivery fell $1.60, or 2%, to $78.61 a barrel on the New York Mercantile Exchange, after rising to as high as $80.84 a barrel earlier in the session.  Brent crude on ICE Futures Europe fell $1.33, or 1.4%, to $92.17 a barrel.