[Newsletter 10/25/11] World holds breath as EU summit approaches

 

Market Update:

Stocks are down today on worries over the fate of Europe’s economy.

Wall Street opens down on euro zone concerns

(Reuters) – Stocks opened lower on Tuesday following comments from Germany’s Chancellor that the country is opposed to phrase in a final draft for the region’s summit.

Some weak corporate results, including from 3M Co (MMM.N) and Netflix Inc (NFLX.O), added to the cautious tone.

The Dow Jones industrial average .DJI was down 52.72 points, or 0.44 percent, at 11,860.90. The Standard & Poor’s 500 Index .SPX was down 8.54 points, or 0.68 percent, at 1,245.65. The Nasdaq Composite Index.IXIC was down 19.19 points, or 0.71 percent, at 2,680.25…Read the full article

 

Major Media Headlines:

  • The Obama administration announces a new plan to help underwater mortgage holders. (Reuters) – Media Digest
  • Amazon.com’s (NASADQ: AMZN) results could be hurt by the expense of the Kindle Fire. (Reuters) - Media Digest
  • More worries arise about an EU region recession. (WSJ) - Media Digest
  • Banks in Italy and Spain may take the largest hits in an EU rescue plan. (Bloomberg) - Media Digest
  • U.S. mortgage bonds hit a six-month low on Obama’s home refinance program plans. (FT) - Media Digest

 

 

Oil Today:

Oil continues to recover month-long lows as it hovers around $93-94/barrel.

Oil prices mixed on eve of European summit

World oil prices were mixed on Tuesday as traders awaited a midweek European summit on resolving the region’s debt crisis while upbeat Chinese economic data provided support, analysts said.

New York’s main contract, light sweet crude for December delivery, gained 97 cents to $92.24 per barrel.

Brent North Sea crude for December fell 21 cents to $111.24 in early afternoon deals.

Traders were on the sidelines ahead of Wednesday’s emergency European Union debt rescue summit, said Nick Trevethan, senior commodities strategist for ANZ Research in Singapore.

“There is a degree of fence-sitting ahead of the EU summit tomorrow. If they make progress, it will be highly positive for the market, though they have the tendency to disappoint somewhat,” he told AFP.

Market sentiment heading into the summit had been positive following a weekend meeting of EU leaders who seemed to put aside differences and make progress in finding a salve to the region’s debt woes.

However, persistent worries that Italy could need a bailout on the lines of debt straddled Greece as well as negotiations centered on a big debt write-off for Athens cast a shadow.

For the moment, crude markets were being supported by stellar manufacturing data from China, Trevethan stated.

“We have some decent data out of China, which helped lift sentiment not just in oil but in other commodities,” he said.

Manufacturing activity in China hit a five-month high in October, HSBC said Monday, easing fears of a hard landing in the world’s second-largest economy and greatest energy consumer…Read the full article

 

 


Weather Updates

Hurricane Rina. Weekly Weather and Energy Newsletter - 10/25/2011

National Hurricane Center

In the Gulf we have Hurricane Rina approaching Cancun, Mexico. Rina will then move northeast, potentially towards Florida. We will continue to update this storms progress via the Sun Coast Facebook Page.

Weather updates will be streamed on Sun Coast’s Facebook Page.

Contact Sun Coast Resources to find out how we can keep you going during and after the storm with 24/7 Emergency Fueling Services!

Email or call toll-free at 800-677-3835 *490! Get ready for the incoming storms!

National Weather Conditions

National Weather Hazards. Weekly Weather and Energy Newsletter - 10/25/2011

National Weather Service

Colorado is looking at severe winter weather this week. There are freeze warnings throughout the northwestern states and small patches of red flag warnings in Florida and California.

Click on the map to take a closer look at your area.

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