Oil Trades Near $60 a Barrel as U.S. Drillers Add Onshore Rigs

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Oil traded near $60 a barrel as explorers in the U.S. increased drilling activity for the first time since November.

Futures were little changed in New York after falling 1.7 percent on Friday. The number of onshore rigs climbed by three to 853, while total machines targeting oil slid by one, data from Baker Hughes Inc. showed. Venezuela is working with OPEC members to boost prices, President Nicolas Maduro said in a national address.

Oil’s rebound from a six-year low is faltering near $60 a barrel amid speculation that rising prices will encourage companies such as EOG Resources Inc. to add to supplies. Crude inventories in the U.S., the world’s biggest oil consumer, are close to the highest level in 85 years, according to the Energy Information Administration.

West Texas Intermediate for July delivery was at $59.81 a barrel in electronic trading on the New York Mercantile Exchange, up 9 cents, at 11:32 a.m. Sydney time. The contract declined $1 to $59.72 on Friday. Total volume was about 81 percent below the 100-day average. Prices, little changed in May, have gained 12 percent this year.

There will be no Nymex floor session Monday because of the Memorial Day holiday and transactions will be booked Tuesday for settlement purposes.

Brent for July settlement was 10 cents higher at $65.47 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $5.70 to WTI.

Source: Bloomberg

Gold Drops Toward $1,200 as Interest Rate Outlook Boosts Dollar

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Gold fell, extending the biggest weekly loss since April, as prospects for the first U.S. interest rate rise since 2006 helped to push the dollar to a one-month high. Silver, platinum and palladium declined.

Bullion for immediate delivery lost as much as 0.3 percent to $1,202.95 an ounce and traded at $1,203.45 at 8:54 a.m. in Singapore, Bloomberg generic pricing showed. The metal dropped 1.5 percent last week, the most since the period to April 24.

Federal Reserve Chair Janet Yellen still expects to raise rates this year if the economy meets her forecasts. Inflation is moving toward the Fed’s 2 percent target after a report on Friday showed core consumer prices climbed 0.3 percent in April, the biggest gain in two years. While a pickup in inflation can boost demand for bullion as a hedge, higher borrowing costs cut the allure of the metal, which generally only provides returns through price gains.

The Bloomberg Dollar Spot Index rose as much as 0.2 percent to 1,181.92 on Monday, the highest since April 27. The gauge rallied 2.6 percent last week, the most since September 2011.

Gold for August delivery traded at $1,203.80 an ounce on the Comex in New York from $1,204.90 on Friday. Most-active prices declined 1.7 percent last week. Silver for immediate delivery fell 0.3 percent to $17.0583, dropping for a second day.

Source: Bloomberg

Japan Exports Rise More Than Forecast as Shipments to U.S. Jump

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Japanese exports rose more than forecast in April, providing support for an economy that’s expanded for two straight quarters after a recession in 2014.

The value of overseas shipments rose 8 percent from a year earlier, the Ministry of Finance said on Monday, compared with a median estimate for a 6 percent increase. Imports slid 4.2 percent, leaving a 53.4 billion yen ($440 million) trade deficit. Japan’s exports exceeded imports in March for the first time in almost three years.

Building strength in large exporting companies has been one of the key strengths of Prime Minister Shinzo Abe’s economic policies as the yen’s decline boosts the competitiveness of Japanese products overseas. The International Monetary Fund said on May 22 that weaker-than-expected growth in China and the U.S. could trip Japan’s export-led recovery.

Shipments to the U.S. rose 21 percent, and those to China were up 2.4 percent from a year earlier.

Japan’s economy expanded 0.6 percent from the previous quarter in the three months through March, beating forecasts, with net exports subtracting 0.2 percentage point from growth.

The International Monetary Fund said Japan’s economy will grow about 1 percent in 2015 and 1.25 percent in 2016 due to recovery in exports and stronger domestic consumption in a statement.

Source: Bloomberg

Japanese Stocks Rise After Yen Slides on U.S. Inflation

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Japanese stocks rose for a seventh day after the yen weakened as a report showed U.S. inflation firmed and Federal Reserve Chair Janet Yellen said she expects to raise interest rates this year.

Toyota Motor Corp., which gets more than three-quarters of its sales overseas, was the biggest boost to the Topix index. Tokyo Electric Power Co. jumped 5.1 percent after a report the utility won an order to build a gas-fired power plant and desalination facility in Qatar. Takata Corp. slumped 3.8 percent after carmakers announced additional recalls in Japan and Australia of vehicles with the company’s air bags.

The Topix index added 0.7 percent to 1,658.95 at the break in Tokyo, extending last week’s gain of 2.5 percent. All but five of the measure’s 33 industry groups advanced. The Nikkei 225 Stock Average climbed 0.7 percent to 20,407.02, headed for the highest close since 2000. The yen fell 0.1 percent to 121.67 per dollar after dropping 0.4 percent on Friday.

Source: Bloomberg

Shanghai Composite Rallies to Seven-Year High as Smallcaps Drop

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The Shanghai Composite Index rallied for a fifth day to a seven-year high as investors sought financial companies and other underperformers this year, while rotating out of overvalued, small-company stocks.

The Shanghai Composite climbed 1.5 percent to 4,729.12 at 9:51 a.m. It advanced 8.1 percent last week, the biggest gain since the week ended Dec. 5, amid speculation the government may escalate measures to stimulate the economy. The CSI 300 Index rose 1.4 percent. Hong Kong’s market is closed Monday for a public holiday. The ChiNext slumped 3.3 percent, heading for the biggest drop since April 15.

The China Securities Regulatory Commission will target listed companies’ information disclosure and abnormal trading activities in an effort to clamp down on market manipulation, according to a statement posted on its microblog on Friday.

Source: Bloomberg