Oil Surges the Most in Two Weeks After U.S. Inventories Decline

---

Oil rose the most this month after a government report showed U.S. crude inventories declined as refineries bolstered operating rates.

Stockpiles slipped 2.1 million barrels last week, according to the Energy Information Administration. Refineries increased operating rates for the first time since July, and supplies of gasoline and distillate fuels surged. Stocks of oil exploration and production companies rallied, while those of refiners fell.

Oil has fluctuated since slumping below $40 a barrel last month as concern that China’s growth was slowing fueled volatility in markets

West Texas Intermediate for October delivery rose $2.56, or 5.7 percent, to settle at $47.15 a barrel on the New York Mercantile Exchange. It was the highest close and biggest one-day gain since Aug. 31. Volume was 42 percent above the 100-day average at 2:55 p.m.

Brent for November settlement climbed $2, or 4.2 percent, to end the session at $49.75 a barrel on the London-based ICE Futures Europe exchange.

Source: Bloomberg

Gold Futures Rise as U.S. Consumer-Price Drop Eases Rate Concern

---

Gold futures gained the most in more than three weeks as signs of tame U.S. inflation eased concern that the Federal Reserve will raise interest rates this week.

Prices paid by American households declined in August as cheaper gasoline helped keep increases below the objective of Fed policy makers, a government report showed Wednesday. Gold, historically sought as a store of value as consumer prices rise, is instead benefiting from doubts on how soon inflation will return to the Fed’s 2 percent target.

Central bankers conclude a two-day meeting on Thursday, and Fed-fund futures show a 28 percent chance of a 25 basis point increase, down from 32 percent on Tuesday. The probability is 62 percent by December, based on data compiled by Bloomberg. Higher rates curb the allure of gold by making it less competitive against assets that pay a yield, like bonds.

Gold futures for December delivery climbed 1.5 percent to settle at $1,119 an ounce at 1:42 p.m. on the Comex in New York. That marked the biggest gain since Aug. 20. Trading was 14 percent below the 100-day average, according to data compiled by Bloomberg.

Silver futures for December delivery jumped 3.9 percent to $14.885 an ounce on the Comex, the biggest gain in four months. On the New York Mercantile Exchange, platinum futures for October delivery added 1.8 percent to $975.70 an ounce, while palladium futures for December delivery climbed 1.9 percent to $611.95.

Source: Bloomberg

Japanese Stocks Rise Second Day on Higher Oil Prices Before Fed

---

Japanese stocks rose for a second day as energy explorers rallied on higher crude oil prices, and as investors await a Federal Reserve decision on U.S. interest rates.

The Topix index added 1 percent to 1,486.72 as of 9:02 a.m. in Tokyo, with all but one of its 33 industry groups rising. The Nikkei 225 Stock Average increased 1.1 percent to 18,379.16. The Fed announces its interest rate review Thursday.

E-mini futures on the Standard & Poor’s 500 Index slipped 0.2 percent after the underlying equity measure rose 0.9 percent on Wednesday, closing at its highest level in four weeks.

Speculation has increased that the Fed will delay a rate increase as China ignited concern that its slowdown could weigh on global growth. While investors remain confident the central bank will raise borrowing costs this year, traders are pricing in a 28 percent chance of action on Thursday, down from 50 percent before China’s currency devaluation last month. Odds of a move at the December meeting are about 64 percent.

Source : Bloomberg

U.S. Stocks Rise as Energy Shares, Molson Rally While Fed Meets

---

U.S. stocks closed at their highest level in almost four weeks, with equities spurred on by a rally in energy shares and deal activity among beer brewers while Federal Reserve policy makers debated whether to raise interest rates.

The Standard & Poor’s 500 Index rose 0.9 percent to 1,995.12 at 4 p.m. in New York, its highest since Aug. 20, after the gauge rallied 1.3 percent yesterday.

Data today showed prices paid by American households declined in August as cheaper gasoline helped keep inflation below the objective of Fed policy makers. The consumer-price index dropped 0.1 percent, the first decline since January. The so-called core measure, which strips out often-volatile fuel and food costs, rose 0.1 percent for a second month.

Source: Bloomberg

U.S. Stocks Advance Amid Gains in Energy, Molson as Fed Meets

---

U.S. stocks rose amid deal activity among beer brewers and a rally in energy shares, as Federal Reserve policy makers hold a two-day meeting to decide whether to lift interest rates for the first time since 2006.

Molson Coors Brewing Co. jumped 13 percent to a record after Anheuser-Busch InBev NV said it intends to make a bid for Molson’s joint-venture partner SABMiller Plc. Chevron Corp. and Exxon Mobil Corp. advanced more than 1.9 percent as oil climbed for a second day. Hewlett-Packard Co. gained 5.1 percent amid its plans to cut about 30,000 jobs. FedEx Corp. lost 3.9 percent after cutting its 2016 profit forecast.

The Standard & Poor’s 500 Index rose 0.7 percent to 1,991.94 at 12:24 p.m. in New York, after surging 1.3 percent Tuesday. The Dow Jones Industrial Average added 98.45 points, or 0.6 percent, to 16,698.30. The Nasdaq Composite Index gained 0.4 percent. Trading in S&P 500 companies was 12 percent below the 30-day average for this time of day.

Data today showed prices paid by American households declined in August as cheaper gasoline helped keep inflation below the objective of Fed policy makers. The consumer-price index dropped 0.1 percent, the first decline since January. The so-called core measure, which strips out often-volatile fuel and food costs, rose 0.1 percent for a second month.

Source : Bloomberg