European shares edge up ahead of key U.S. jobs data

LONDON: European shares edged up on Friday ahead of a key U.S. labour report that may show whether the world’s biggest economy is headed for a recession, and after two days of sharp gains on optimism for bank recapitalisation.

U.S. employment likely grew only modestly in September, with hiring too weak to pull down a lofty jobless rate and dispel recession fears. The data is due at 1230 GMT.

“Anything (in the U.S. data) that looks negative could reverse the relief rally, though it’s likely to be an inconclusive number,” Bill Blain, strategist at NewEdge Group in London, said, adding he was sceptical about the main driver of the rally.

“There is no plan to recapitalise the banks. All there is, is chitter-chatter. The equity markets are phenomenally stupid. The market is hearing what it wants to hear.”

European governments are simultaneously contemplating making banks take a bigger writedown on Greek debt, taxing their financial transactions and boosting their capital base.

At 1102 GMT, the FTSEurofirst 300 index of top European shares was up 0.1 percent at 941.79 points, having hit a five-week closing high on Thursday. It is down more than 16 percent in 2011.

Although euro zone banks retained some of the gains made this week after sharp bounces from weakness, two UK banks fell after Moody’s downgraded their credit ratings. Royal Bank of Scotland and Lloyds Banking Group fell 3.5 and 3.6 percent respectively

Trading volume on RBS was about 74 percent of the 30-day average by midday.

“I was surprised to see the UK banks getting hit by Moody’s — they took the hit early and to me look a lot better (than euro zone banks). I’d buy RBS before I buy any European bank at the moment,” Blain said.

TRADING RANGE

“European equities are in another unnatural trading range,” Citigroup strategists said in a note, adding a break to the downside “requires disorderly euro area debt default, banking collapse in Europe or global recession”.

They said upside would require “a lot of hard work from policymakers and politicians and an orderly end-game to this stage of the euro area sovereign debt crisis”.

Citi said it backed the latter scenario.

The European benchmark gained 6 percent in the previous two sessions and is on track for a second consecutive weekly gain.

It went as high as 947.52 earlier in the session and moved above its 50-day moving average for the first time since late July, breaking above the neckline of an inverse head and shoulders chart pattern shaped over the past five weeks, sending a strong bullish signal to chartists.

“European stock indexes as well as shares in a number of sectors such as banking, insurance, oil, utilities and telecoms, seem to be stabilising. This is the result of extremely low valuation,” Cholet Dupont strategist Vincent Guenzi said.

The sharp losses suffered by European stocks over the past two and a half months have knocked valuation ratios to levels not seen since the heat of the financial crisis in early 2009. AGENCIES

Sindh buys 70,000 tons of sugar from TCP

Staff Report

KARACHI: The Government of Sindh has purchased 70,000 tons of sugar from the Trading Corporation of Pakistan (TCP), Trend Pk reported on Saturday.

The provincial government has granted magistrate powers to district coordination officers (DCOs) to halt black marketing and illegal hoarding which are leading to a sharp hike in sugar prices.

Chief Minister Syed Qaim Ali Shah held a video conference with DCOs, instructing them to ensure enforcement of law across the province.

He further directed them to crack down on hoarders and profiteers, and seize hoarded sugar. Trend Pk

Punjab gets 100,000 tons of sugar from TCP

Staff Report

LAHORE: The Punjab government has claimed that sugar will now be available across province at the rate of Rs. 72 per kilogram.

This claim came after Chief Minister Shahbaz Sharif ordered a crackdown on hoarders and profiteers.

Meanwhile, Punjab received its first consignment of 100, 000 tons of sugar from the Trading Corporation of Pakistan (TCP).

The sugar will be dispatched to different areas of Punjab through private dealers.

The provincial government is hoping that sugar price will come down to Rs. 72 per kilogram with extra supply. Trend Pk

Sindh govt. fixes sugar price at Rs 61 per kg

Staff Report

KARACHI: Sindh government on Wednesday has fixed retail price of sugar at Rs 61 per kilogram.

A meeting on sugar price was held at Sindh Chief Minister House chaired by Sindh CM Syed Qaim Ali Shah.

The meeting decided that the government will purchase sugar from the Trading Corporation of Pakistan at Rs 56 per kilogram while it would be available in the open market at Rs 61 per kg for the common people.

Sindh CM Shah has directed all the District Coordination Officers (DCOs) to take action against sugar hoarders. Trend Pk

Sindh govt. fixes sugar price at Rs 61 per kg

Staff Report

KARACHI: Sindh government on Wednesday has fixed retail price of sugar at Rs 61 per kilogram.

A meeting on sugar price was held at Sindh Chief Minister House chaired by Sindh CM Syed Qaim Ali Shah.

The meeting decided that the government will purchase sugar from the Trading Corporation of Pakistan at Rs 56 per kilogram while it would be available in the open market at Rs 61 per kg for the common people.

Sindh CM Shah has directed all the District Coordination Officers (DCOs) to take action against sugar hoarders. Trend Pk

US firm awarded urea import contract: TCP

KARACHI: A tender for the import of 100,000 tonnes urea was awarded to Transammonia INC, USA, said an official statement of the Trading Corporation of Pakistan (TCP) on Friday.

TCP’s tender for the import of urea opened on Thursday. Eight bidders participated in the tender and quoted prices ranged between $287.89 to $308.89 per ton CF.

The bid of Transammonia INC, USA for the supply of 100,000 tons at US$287.89 per ton was found to be the lowest and in conformity to all technical specifications and terms and conditions, said TCP.

“The rates received in this tender are in consonance with the prevailing international market prices of urea.”

With this tender TCP has finalised contracts for the total additional import of 0.4 million tons assigned to it by the ECC of the cabinet to meet the requirement of farmers during kharif 2010.

Oil hovers at $76 after China trade data

TOKYO/SINGAPORE: U.S. crude oil futures hovered at around $76 a barrel on Monday as China”s bigger-than-expected trade surplus in June eased worries about a slowdown for the global economic recovery and oil demand.

Chinese exports in June rose 43.9 percent from a year earlier, while crude imports in the world”s second-largest energy user rose by a quarter to hit a record high above 22million tonnes.

Crude for August delivery was trading down 13 cents at $75.96 a barrel by 0445 GMT, after closing last week with again of more than 5 percent — its biggest jump since the week to May 28.

Crude hit an intraday high of $76.48 on Friday, the highest since June 30.

“Because oil closed higher than expected last week, we are seeing some short-covering in Asia,” said Ken Hasegawa, a commodity derivatives sales manager at broker Newedge in Tokyo.

“Amid a lack of major news in particular, I have to attribute the rise to China data.”

U.S. crude remains below a 19-month peak above $87 reached in early May, having rebounded sharply from a trough below $65on May 20.

London Brent crude was trading 17 cents lower at $75.25 a barrel.

Stock markets in Asia edged higher, after the best week in a year for U.S. equities. The driver this week will be quarterly earnings, which kick off on Monday with the results of aluminum producer Alcoa.

U.S. June retail sales data due on Wednesday will be pivotal to gauge the country”s economic recovery, Stephen Schork, president of energy advisory firm the Schork Group, said in a note.

“If we are to see serious gains from the bulls this week, we will need to see strength in equities, strong retail sales figures and a weaker dollar would not hurt,” he said.

The yen eased on Monday after election results showed political uncertainty lay ahead for Japan after a poor showing for the ruling party in upper house elections.

Weather forecasters reported no new signs of foul weather brewing that could hit the Gulf of Mexico, after Tropical Depression No.2 hit Mexico”s coast near the border with Texas on Thursday, missing energy production platforms.

BP puts oil leak bill at 3.5 billion dollars

LONDON: The continuing oil leak caused by the April explosion of a Gulf of Mexico oil rig has cost BP 3.5 billion dollars (2.78 billion euro), the British petrol giant said Monday.

“The cost of the response to date amounts to approximately 3.5 billion dollars, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs,” it said in a statement.

Pak rupee touches lows versus dollar

KARACHI: Pak rupee today tumbled with steep plunge versus dollar, as it touched lows despite the national foreign exchange reserves burgeoned to phenomenal height in national history, Geo News reported Monday.

According to Forex market dealers, the market opened with positive demand for dollar, pushing it up by 9 paisa against rupee on the very first day of the trading week.

Thus, the dollar was witnessed to be trading at Rs85.77 during today’s trade.

According to economists, the persistent devaluation of the currency of the country will aggravate the inflation. The situation can be countered by enhancing the gross production to boost foreign exchange reserves.

TCP awards another sugar contract

KARACHI: The Trading Corporation of Pakistan (TCP) has awarded tender for import of 100,000 metric tons sugar to the lowest bidder at $ 558 per metric ton CF.

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TCP awards another sugar contract

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