Arab Today, arab today prices of oil gold and grains fall on news of bin laden death
Last Updated : GMT 05:56:54
Arab Today, arab today
Arab Today, arab today

Risk premium on the underpinning commodities prices

Prices of oil, gold and grains fall on news of Bin Laden death

Arab Today, arab today

Arab Today, arab today Prices of oil, gold and grains fall on news of Bin Laden death

Traders work on the floor of the New York Stock Exchange
SINGAPORE ? Agencies

Traders work on the floor of the New York Stock Exchange Oil and gold fell on Monday, dipping by as much as two percent after news of Osama bin Laden\'s death stripped some of the risk premium that has been underpinning commodities prices. Silver tumbled as much as 13 per cent. Futures on the Standard & Poor\'s 500 Index rose 0.5 per cent, indicating US shares may extend a four-day rally when markets open later on Monday.
Those on the Euro Stox 50 Index advanced 0.8 per cent. The MSCI Asia Pacific added 0.7 per cent, set for the highest close since January 19. The yen fell against 15 of 16 major peers.
In Washington, US President Barack Obama said Al Qaida\'s elusive leader, whom authorities had sought in vain since his late-2001 disappearance in Afghanistan, was killed in Pakistan on Sunday and his body recovered.
The news could reduce the risk premium swelling prices because of war in Libya and unrest in the Middle East and North Africa, although Obama did urge vigilance against the risk of anti-American violence.
\"If Osama is taken out, you are going to see risk premium being wiped out from the market. It is going to bring down oil prices by $5 to $10 if people warrant that risk premium is important,\" said Jonathan Barratt, managing director of Commodity Broking Services, based in Sydney.
ICE Brent crude for June was down 98 cents at $124.91 a barrel, still just over $2 short of last month\'s 32-month high above $127, while US crude  slid $1.19 to $112.74 by 0508 GMT.
\"Oil markets are likely to be the most volatile given their higher sensitivity to the tug of war between lower risk overall and the possibility of isolated disturbances in some parts of the Middle East and central Asia,\" said Mohamed Al Erian, chief executive and co-chief investment officer of PIMCO, the world\'s largest bond fund manager.
Oil was already down before the news about Bin Laden, after Nato air strikes over the weekend killed one of Libyan leader Muammar Gaddafi\'s sons and after industry sources said that Saudi Arabia raised output in April.
Gaddafi\'s youngest son and three grandchildren were killed in a Nato air strike, the Libyan government said on Sunday. Britain said that while it was not targeting the leader, it was homing in on the regime\'s military machine.
Asian stocks earlier gained after Warren Buffett said Berkshire Hathaway Inc. would be \"delighted\" to invest in Japan and elsewhere in the region, as data showed South Korean exports rose to a record in April and Australian Treasurer Wayne Swan said next week\'s budget will forecast the creation of 500,000 jobs within two years.
\"This is a positive development in the campaign against terrorism,\" said Jonathan Ravelas, chief market strategist at Manila-based Banco de Oro Unibank Inc. in Manila. \"In the last 10 years, bin Laden\'s presence has been a serious threat to global stability. The flipside is this could be followed by retaliation activities from his supporters.\"
Spot gold prices fell a little over $5 to $1,540.39 an ounce immediately after the reports of Bin Laden\'s death, having earlier touched an all-time high of $1,575.79. By 0502 GMT, gold had recovered to $1,549.56.
Spot silver stood at $44.64 an ounce, down 6.6 percent on the day, while COMEX silver for July delivery traded at $44.41 an ounce versus $48.599 on Friday. Prices dipped as low as $42.80 for spot and $42.20 in futures markets.
\"Silver is an accident waiting to happen, and it seems like it has incurred \'bumper\' damage today,\" said David Thurtell, an analyst at Citigroup.
Markets across large parts of Asia and much of Europe were closed for May Day and Labour day holidays, reducing the number of market participants and making for volatile trade.
Chicago Board of Trade front-month May corn, which is linked to crude prices though its use in ethanol, fell 1.8 per cent to $7.40-1/2 a bushel, leading losses for wheat, down 1.01 per cent to 7.61-1/2 a bushel.
Further pressure on the corn market came from forecasts of improved weather in the US Midwest that brightened hopes for this year\'s delayed plantings.
The dollar had strengthened by nearly 0.3 per cent earlier on Monday following last week\'s slide, deterring investors from piling into commodities this week.
Last week\'s Federal Reserve reassurance that economic stimulus would continue had hammered the dollar to a three-year low, boosting US crude to above $114 on Friday, the highest since September 2008, and gold to a record earlier on Monday.
But markets\' swift fall in response to Monday\'s news of Bin Laden\'s death could turn out to be brief, one analyst said.
The US dollar rebounded from a three-year low against a basket of currencies on Monday as news of Bin Laden prompted short-covering in a heavily-sold greenback, though traders think any impact will be temporary.
The currency was due for a corrective rebound, dealers said, with players having sold the dollar against pretty much everything from the euro and commodity currencies to oil and precious metals for the past few weeks.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today prices of oil gold and grains fall on news of bin laden death Arab Today, arab today prices of oil gold and grains fall on news of bin laden death

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today prices of oil gold and grains fall on news of bin laden death Arab Today, arab today prices of oil gold and grains fall on news of bin laden death

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 3,250 people killed in Raqqa battle

GMT 03:49 2017 Wednesday ,18 October

3,250 people killed in Raqqa battle
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday