Metals prices rose Thursday on signs that Greece's multi-billion dollar bond swap will go through.
The goal of the swap is to slash Greece's debt burden and help the country avoid a disastrous default. The results are scheduled to be released Friday.
Resolving Greece's debt crisis would calm long-running fears about the stability of Europe's shared currency, the euro. That, in turn, could encourage more economic growth and increase demand for industrial metals and other commodities.
Copper for May delivery rose 2.45 cents to finish at $3.7915 per pound, April platinum rose $29.40 to $1,656.70 an ounce and June palladium rose $14.10 to $699.45 an ounce.
Gold and silver also rose because investors are concerned about a dispute over Iran's nuclear program, R.J. O'Brien commodities broker Phil Streible said. The U.S., Europe and others fear that Iran may be building a nuclear weapon. Iran has denied it.
April gold rose $14.80 to finish at $1,698.70 an ounce and May silver increased 24.6 cents to $33.831 per ounce.
In other trading, grains fell ahead of a the U.S. Agriculture Department's revised report on global supply and demand estimates, which is scheduled to be released Friday.
Wheat for May delivery fell 4.5 cents to finish at $6.3475 per bushel and May corn declined 3.25 cents to $6.355 per bushel. Soybeans rose 11.75 cents to end at $13.385 per bushel.
The goal of the swap is to slash Greece's debt burden and help the country avoid a disastrous default. The results are scheduled to be released Friday.
Resolving Greece's debt crisis would calm long-running fears about the stability of Europe's shared currency, the euro. That, in turn, could encourage more economic growth and increase demand for industrial metals and other commodities.
Copper for May delivery rose 2.45 cents to finish at $3.7915 per pound, April platinum rose $29.40 to $1,656.70 an ounce and June palladium rose $14.10 to $699.45 an ounce.
Gold and silver also rose because investors are concerned about a dispute over Iran's nuclear program, R.J. O'Brien commodities broker Phil Streible said. The U.S., Europe and others fear that Iran may be building a nuclear weapon. Iran has denied it.
April gold rose $14.80 to finish at $1,698.70 an ounce and May silver increased 24.6 cents to $33.831 per ounce.
In other trading, grains fell ahead of a the U.S. Agriculture Department's revised report on global supply and demand estimates, which is scheduled to be released Friday.
Wheat for May delivery fell 4.5 cents to finish at $6.3475 per bushel and May corn declined 3.25 cents to $6.355 per bushel. Soybeans rose 11.75 cents to end at $13.385 per bushel.
Natural gas prices fell sharply after spring-like weather blanketed much of the country, raising expectations that demand will remain weak. At the same time, supplies have stayed well above year-ago levels. Natural gas fell 3 cents to finish at $2.27 per 1,000 cubic feet on the New York Mercantile Exchange.
Benchmark crude rose 42 cents to end at $106.58 per barrel, heating oil rose 5 cents to $3.27 per gallon and gasoline futures increased 3 cents to $3.31 per gallon.
Metals rise on hope for successful Greek bond swap, Jitters over Greek swap worries, Morning business round-up: Greece to get debt swap
Anxious markets across Asia and the Middle East declined yesterday as European equities traded flat amid worries about the outcome of the private debt swap in Greece heightened with its deadline expiring later today.
Greek private creditors have until tonight to participate or reject the bond exchange programme that forms part of the bailout that will enable Greece to avoid a default.
So far, a number of big bondholders, including European banks and pension funds, have signed up. However, a significant number of Greek pension funds and some foreign institutional investors have rejected the offer which comes with a 70 per cent write-down in the value of their holdings. The Greek government, which set a 75 per cent participation rate as a threshold for proceeding with the transaction, said it will use collective action clauses (CAC) to force bondholders to accept the swap if it receives sufficient consent from investors.
Markets fear that a failure to achieve the swap target could result in a disorderly default, triggering claims on credit default swaps (insurance against bond default) ultimately resulting in contagion spreading to southern Europe and limiting their ability to borrow in the market.
"As the deadline approaches for investor acceptance of the Greek PSI (Private Sector Initiative) on Thursday night it is almost inevitable that anxiety is returning to markets," said Tim Fox, chief economist at Emirates NBD.
The objective of the bond exchange is to reduce the €206 billion (Dh996.26 billion) of privately held Greek debt by 53.5 per cent.
Despite the growing worries over the success of a voluntary bond exchange, some analysts said the collective action clause and the immense political pressure on European institutions will see the programme scrape through ahead of the deadline.
"If participation is less than 66 per cent Greece will default directly, if between 66 per cent and 75 per cent it will lead to CAC-based enforcement, above 75 per cent will be spun as a "great success". To us, only below 66 per cent matters, and it is very unlikely, considering the political pressure and dependence on the ECB from the involved parties," said Steen Jakobsen, chief economist of Saxo Bank.
Benchmark crude rose 42 cents to end at $106.58 per barrel, heating oil rose 5 cents to $3.27 per gallon and gasoline futures increased 3 cents to $3.31 per gallon.
Metals rise on hope for successful Greek bond swap, Jitters over Greek swap worries, Morning business round-up: Greece to get debt swap
Anxious markets across Asia and the Middle East declined yesterday as European equities traded flat amid worries about the outcome of the private debt swap in Greece heightened with its deadline expiring later today.
Greek private creditors have until tonight to participate or reject the bond exchange programme that forms part of the bailout that will enable Greece to avoid a default.
So far, a number of big bondholders, including European banks and pension funds, have signed up. However, a significant number of Greek pension funds and some foreign institutional investors have rejected the offer which comes with a 70 per cent write-down in the value of their holdings. The Greek government, which set a 75 per cent participation rate as a threshold for proceeding with the transaction, said it will use collective action clauses (CAC) to force bondholders to accept the swap if it receives sufficient consent from investors.
Markets fear that a failure to achieve the swap target could result in a disorderly default, triggering claims on credit default swaps (insurance against bond default) ultimately resulting in contagion spreading to southern Europe and limiting their ability to borrow in the market.
"As the deadline approaches for investor acceptance of the Greek PSI (Private Sector Initiative) on Thursday night it is almost inevitable that anxiety is returning to markets," said Tim Fox, chief economist at Emirates NBD.
The objective of the bond exchange is to reduce the €206 billion (Dh996.26 billion) of privately held Greek debt by 53.5 per cent.
Despite the growing worries over the success of a voluntary bond exchange, some analysts said the collective action clause and the immense political pressure on European institutions will see the programme scrape through ahead of the deadline.
"If participation is less than 66 per cent Greece will default directly, if between 66 per cent and 75 per cent it will lead to CAC-based enforcement, above 75 per cent will be spun as a "great success". To us, only below 66 per cent matters, and it is very unlikely, considering the political pressure and dependence on the ECB from the involved parties," said Steen Jakobsen, chief economist of Saxo Bank.
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