Oil Holds Near $58 as U.S. Crude Stockpile Glut Seen Shrinking

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Oil held near $58 after falling a third time in four days before U.S. government data forecast to show the country’s crude supplies shrank for a sixth week.

Futures gained as much as 0.4 percent in New York. Crude inventories probably fell by 1.45 million barrels through the week ended June 5, according to a Bloomberg survey before an Energy Information Administration report Wednesday. OPEC, which maintained its production quota at a June 5 meeting, is unlikely to cut supply until the shale threat wanes, according to Hindustan Petroleum Corp.’s refineries director B.K. Namdeo.

Oil’s recovery from a six-year low has faltered near $60 a barrel amid speculation the global glut will persist as rising prices spur a rebound in U.S. output. The nation’s crude stockpiles are almost 100 million barrels above the five-year average for this time of the year, according to the EIA.

West Texas Intermediate for July delivery rose as much as 24 cents to $58.38 a barrel in electronic trading on the New York Mercantile Exchange and was at $58.32 at 10:14 a.m. Sydney time. The contract fell 1.7 percent to $58.14 on Monday. The volume of all futures traded was about 88 percent below the 100-day average. Prices have increased 9 percent this year.

Brent for July settlement was 14 cents higher at $62.83 a barrel on the London-based ICE Futures Europe exchange. The contract slid 62 cents, or 1 percent, to $62.69 a barrel on Monday. The European benchmark crude traded at a premium of $4.51 to WTI.

Source : Bloomberg

Gold Holds Gain From March Low as Dollar, Asian Demand Assessed

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Gold held an advance as investors weighed a drop in the dollar against speculation that Asian demand may be waning.

Bullion for immediate delivery traded at $1,173.99 an ounce at 8:23 a.m. in Singapore from $1,174.07 on Monday, when prices climbed 0.2 percent, according to Bloomberg generic pricing. The metal fell to $1,162.88 on Friday, the lowest since March 19, after the U.S. added more jobs than expected in May.

Gold fell 0.9 percent this year while the dollar climbed 4.5 percent as investors seek to gauge when the Federal Reserve will raise borrowing costs for the first time since 2006. Higher rates drive investors to favor assets that pay interest, curbing the allure of the metal. The Bloomberg Dollar Spot Index lost 1 percent on Monday as the euro climbed 1.6 percent.

Gold coin and minted-bar sales from Australia’s Perth Mint fell to a three-year low in May, the mint said on Friday. Sales of American Eagle gold coins at the U.S. Mint, the world’s largest, dropped 27 percent in May from April.

Gold for August delivery was at $1,173.20 an ounce on the Comex from $1,173.60 on Monday, when prices climbed 0.5 percent. Silver for immediate delivery was little changed at $15.9813 an ounce. Platinum traded at $1,104.45 an ounce from $1,102.46, while palladium was little changed at $745.32 an ounce.

Source : Bloomberg

Most Asian Stocks Retreat as Yen Gain Weighs on Japanese Shares

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Most Asian stocks fell as a rebound in the yen hurt Japanese shares and investors weighed the outlook for U.S. interest rates and Greece’s debt talks.

About three shares dropped for each that gained on the MSCI Asia Pacific Index, which traded little changed at 147.44 as of 9:01 a.m. in Tokyo. Japan’s Topix index slid 0.8 percent after the yen gained 0.9 percent against the dollar on Monday, when the Standard & Poor’s 500 Index fell to a two-month low. Strong jobs data Friday bolstered bets the Federal Reserve will raise interest rates this year. German Chancellor Angela Merkel demanded urgent action from the Greek government on Monday after it rejected the terms of an aid package again last week.

Creditors are growing increasingly exasperated with Greek Prime Minister Alexis Tsipras’s negotiating tactics. U.S. President Barack Obama voiced his concerns about the standoff over Greek financial aid at a summit of Group of Seven leaders. European Commission President Jean-Claude Juncker said Greece is not doing enough to ensure it can stay in the euro.

South Korea’s Kospi index slipped 0.1 percent today. New Zealand’s NZX 50 Index lost 0.3 percent. Australia’s S&P/ASX 200 Index fell 0.1 percent as trading resumes following a holiday on Monday. Markets in China and Hong Kong have yet to open.

Source : Bloomberg

Japanese Stocks Fall a Third Day on Stronger Yen, Greece Impasse

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Japanese stocks fell for a third day after the yen strengthened by the most in more than two months and as Greek negotiations continue in a bid to cement its euro-area membership.

The Topix index declined 0.7 percent to 1,649.86 as of 9:01 a.m. in Tokyo, with all but one of its 33 industry groups dropping. The Nikkei 225 Stock Average fell 0.8 percent to 20,298.84. The yen traded at 124.60 per dollar after rising 0.9 percent Monday. Japan reports on machinery tool orders and consumer confidence today, with Prime Minister Shinzo Abe to give a briefing at the Group of Seven nations summit in Germany.

E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent. The underlying measure slipped 0.7 percent on Monday to a two-month low as investors considered the timing of a U.S. interest-rate increase and the outlook for Greece’s debt talks.

Creditors are growing increasingly exasperated with Greek Prime Minister Alexis Tsipras’s negotiating tactics. U.S. President Barack Obama voiced his concerns about the standoff over Greek financial aid at a summit of G-7 leaders. European Commission President Jean-Claude Juncker said Greece is not doing enough to ensure it can stay in the euro.

Source : Bloomberg

U.S. Stocks Drop to April Low as Treasuries Rise, Dollar Slips

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U.S. stocks dropped to a two-month low as technology shares slipped, while Treasuries rose and the dollar fell. European equities slid with bonds in the region as Group of Seven leaders pushed for resolution to Greece’s debt crisis.

The Standard & Poor’s 500 Index lost 0.6 percent at 4 p.m. in New York, dropping through its average price for the past 100 days to the lowest since April 7. The Nasdaq 100 Index slid 1 percent, while the Dow Jones Industrial Average erased its gain for 2015. The Stoxx Europe 600 Index dropped 0.9 percent, capping its longest slide this year as Germany’s DAX Index entered a correction. Treasuries rebounded from the worst weekly slide since February.

Investors are assessing the timing of the Federal Reserve’s next policy move after bonds tumbled and the dollar rallied Friday following data that showed a pickup in hiring. The euro rose for the first time in three days as a selloff in European debt resumed, lifting yields and burnishing the appeal of the currency. The G-7 called for action on Greece amid talks between the nation and creditors Monday.

Source : Bloomberg