U.S. Stocks Rebound From 5-Day Drop on Data Before Fed Minutes

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The Standard & Poor™s 500 Index rose the most in three weeks, halting a five-day slump, as data showed the economy continues to strengthen before the release of minutes from the Federal Reserve™s latest meeting.

Stocks extended gains as lawmakers in Chancellor Angela Merkel™s coalition said Germany is leaving the door open to debt-relief talks with Greece™s next government, signaling a more flexible stance than her administration has taken publicly.

The Standard & Poor™s 500 Index added 1.1 percent to 2,024.03 at 12:14 p.m. in New York. The benchmark gauge plunged 4.2 percent in five days and fell 2.7 percent for the worst start to the year since 2008. The Dow Jones Industrial Average climbed 175.19 points, or 1 percent, to 17,546.83. Trading in S&P 500 companies was 14 percent above the 30-day average for this time of the day.

Minutes from the Dec. 16-17 Federal Open Market Committee at 2 p.m. Washington time may provide clues on the timing of an interest-rate increase. The Fed pledged to be patient in its approach to raising rates, while Chair Janet Yellen said after that meeting the central bank will probably hold rates near zero through at least the first quarter.

Source : Bloomberg

Crude Retreats After Government Data Shows U.S. Fuel Supply Gain

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West Texas Intermediate oil pared gains after a government report showed that U.S. fuel stockpiles surged. Brent earlier slipped below $50 a barrel for the first time since May 2009.

Inventories of distillate fuel, a category that includes heating oil and diesel, increased by a record 11.2 million barrels last week, the Energy Information Administration said. Gasoline stockpiles advanced 8.12 million barrels while crude supplies decreased 3.06 million.

Crude slumped by 48 percent last year, the most since the 2008 financial crisis, as the U.S. pumped at the fastest pace in more than three decades and the Organization of Petroleum Exporting Countries decided to maintain its output ceiling. The oversupply may take œmonths or years to be absorbed, United Arab Emirates Energy Minister Suhail Al Mazrouei said.

WTI for February delivery increased 40 cents, or 0.8 percent, to $48.33 a barrel at 11:08 a.m. on the New York Mercantile Exchange, paring an advance of as much as 2.9 percent. Futures earlier touched $46.83, the lowest level since April 2009. The volume of all futures traded was 58 percent above the 100-day average for the time of day.

Source: Bloomberg

Asian Futures Follow U.S. Stock Rebound Amid Economic Optimism

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Asian index futures climbed amid a rebound in U.S. stocks as data fueled optimism over the American economy and after Federal Reserve meeting minutes confirmed the outlook for interest rates. Australian bonds retreated.

Futures on gauges from Japan to Hong Kong advanced at least 0.3 percent as consumer and health-care stocks drove the Standard & Poor™s 500 Index higher for the first time in six days. The greenback held gains, trading near a nine-year high versus the euro after the Bloomberg Dollar Spot Index gained to its strongest level since at least 2005. Yields on 10-year Australian bonds rose from a record low after similar maturity Treasuries snapped a seven-day rally. West Texas Intermediate crude climbed 1.5 percent to $48.65 a barrel, up from a 5 1/2-year low.

Most Fed officials agreed their commitment to be œpatient on raising rates meant there would be no increase in near-zero borrowing costs before late April, according to minutes of the December meeting released yesterday. Some policy makers expressed concern over below-target inflation and the impact of slowing growth globally. Japan updates on inflation expectations today, after data yesterday showed consumer prices in the euro area fell in December for the first time since 2009.

Futures on Japan™s Nikkei 225 Stock Average added 1.7 percent to 17,140 on the Chicago Mercantile Exchange, while contracts traded in Osaka were up 1.1 percent to 17,140 by 3 a.m. local time.

Source: Bloomberg

Gold Drops as Fed Minutes Support Speculation on Rate Increase

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Gold prices fell after the Federal Reserve signaled it™s on course for the first interest-rate increase since 2006, boosting the dollar and eroding demand for the metal as an alternative asset.

A rout in oil prices and the dollar™s rally against major currencies in the past six months crimped demand for gold. In 2014, the precious metal posted a consecutive annual decline for the first time since 1998 as gains in the U.S. economy signaled prospects for higher interest rates amid muted inflation.

Gold for immediate delivery fell 0.3 percent to $1,214.78 an ounce at 2:50 p.m. in New York, according to Bloomberg generic prices. The metal gained 3.1 percent in the previous three sessions because of European economic concerns.

On the Comex in New York, gold futures for February delivery fell 0.7 percent to settle at $1,210.70 an ounce at 1:37 p.m.,before the Fed announcement. Aggregate trading was 22 percent below the 100-day average for for this time, according to data compiled by Bloomberg.

Source: Bloomberg

U.S. Stocks Rally Most in Three Weeks After Five-Day Selloff

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The Standard & Poor™s 500 Index rallied the most in three weeks, halting a five-day selloff, as data stoked optimism on the economy and Federal Reserve minutes did little to change investor expectations on interest rates.

The S&P 500 jumped 1.2 percent to 2,025.76 at 4 p.m. in New York, after plunging 4.2 percent over the previous five days. The Dow Jones Industrial Average climbed 211.02 points, or 1.2 percent, to 17,582.66. Trading in S&P 500 companies was 14 percent above the 30-day average for this time of the day.

Before today, U.S. equities were off to the worst start for any year since 2008, with the S&P 500 dropping 2.7 percent in the first three sessions of 2015. The losses trimmed the index™s return since the bull market began in March 2009 to 196 percent and followed an advance of 11.4 percent in 2014.

Stocks rallied at the market™s open as data on the labor market and the U.S. trade deficit bolstered confidence in the strength of the economy. Equities extended gains at midday as lawmakers in Chancellor Angela Merkel™s coalition said Germany is leaving the door open to debt-relief talks with Greece™s next government, signaling a more flexible stance than her administration has taken publicly.

Source: Bloomberg