Asian equities finish lower while Coffee Arabica futures rally further

Thursday, June 12, 2014

Japan’s machinery orders fell by 9.1% m/m in April, slightly less than analysts’ expectations of a 11.9% decline. The JPY extended declines trading around 102.00 against the USD. Asian equity markets posted fresh losses due to limited risk appetite. The Nikkei index retreated by almost 100 points, down 0.65%, while the Hang Seng extended declines by 0.38%. 

The US equity markets came under renewed pressure yesterday as investors were prompted into some profit taking following the US Federal Budget releases. The Dow Jones index retreated sharply more than 100 points (-0.6%), but the S&P 500 and Nasdaq managed to end the session fairly flat. The USD index consolidated around the 80.7 area.

In the UK, house prices rose more than expected in May but are likely to rise less over the next 12 months due to ongoing concerns about the housing market as well as tighter lending conditions, according to the UK RICS housing survey results. The survey reported that UK’s main house price balance rose to +57 in May from a revised +55 in April, beating analysts’ expectations.

UK RICS housing survey over 10 years

UKRXPBAL Index (RICS England & W 2014-06-12 08-39-02

This morning, Euronext cash regulated markets trading will be delayed until 8:00 BST due to a technical glitch, while market opening auction will begin at 8:30 BST.

Softs: The US Department of Agriculture (USDA) raised its sugar supply forecast yesterday for the current and upcoming seasons with Mexican imports seen surging, suggesting the trade dispute with Mexico will not possibly disrupt inflows. Hover, NY Sugar prices remained under pressure yesterday after hitting a low at $17.55 to end the session at $17.62 following the recent downtrend in the market. Coffee rallied yesterday, with Arabica front month futures posting its highest gain in nearly a month, due to renewed concerns that drought in Brazil could hurt coffee output.

Coffee Arabica Front Month Futures 

KC1 Comdty (Generic 1st 'KC' Fut 2014-06-12 08-37-37

 

NY Sugar Front Month

SBV4 Comdty (SUGAR #11 (WORLD) O 2014-06-12 08-36-34

Energy: Brent front month futures climbed strongly above $110 per barrel in early trading this morning amid concerns that violence in Iraq could disrupt crude oil supplies in the region. In addition, an unexpected decline in US crude oil stocks provided further support to oil prices.

Brent Front Month Futures

CON4 Comdty (BRENT CRUDE FUTR  J 2014-06-12 08-38-22

Events for today:

 

0001

UK

May

RICS House Prices

0700

DE

May

Wholesale Price

1000

EZ

Apr

Industrial Production

1330

US

May

Import/Export Prices

1330

US

May

Retail Sales

1330

US

w/e

Jobless Claims

1500

US

Apr

Business Inventories

1530

US

w/e

EIA Nat Gas

 

All times UK Local Time

 

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