Crude Oil Declines as Iran Advances in Deal to Revive Exports

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Crude dropped as Iran made progress on an accord to lift sanctions on its exports, threatening to add to the surplus in global markets.

Iran’s cooperation with inspectors is aiding the investigation of the nation’s past nuclear activities, the International Atomic Energy Agency told world powers in Vienna on Monday. Successful implementation of a July 14 deal would allow Iran to resume oil sales halted by sanctions. Declines eased in the last hour of trading as a government report tomorrow is forecast to show U.S. crude stockpiles slipped.

Iran’s vow to increase output “at any cost” to reclaim market share will potentially add to a global surplus that Goldman Sachs Group Inc. predicts may keep prices low for the next 15 years. Oil’s slump is taking its toll on shale drilling in the U.S., where production has fallen from the highest level in more than three decades.

West Texas Intermediate for October delivery, which expired Tuesday, fell 85 cents, or 1.8 percent, to settle at $45.83 a barrel on the New York Mercantile Exchange. Futures surged 4.5 percent Monday. The volume of all futures traded was 23 percent below the 100-day average. The more-active November contract slipped 60 cents to $46.36.

Brent for November settlement rose 16 cents to end the session at $49.08 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a $2.72 premium to WTI for the same month.

Source : Bloomberg

Gold dips as renewed rate rise bets lift dollar; commods slide

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Gold fell 1 percent on Tuesday, pressured as the dollar strengthened on renewed expectations that the Federal Reserve will raise U.S. interest rates for the first time in nearly a decade.

Weakness in other commodities also weighed on gold, which rallied last week after the Fed left rates at ultra-low levels, keeping a lid on the opportunity cost of holding non-yielding bullion. Gold failed to maintain those gains after a Fed official emphasized that a rise had only been postponed.

Spot gold was down 0.7 percent at $1,125.22 an ounce at 3:17 p.m. EDT (1917 GMT), while U.S. gold futures for December delivery settled down 0.7 percent at $1,124.80 an ounce.

Platinum slid the most among precious metals, down more than 3 percent to a 6-1/2-year low. Some traders cited news that the falsification of Volkswagen AG U.S. vehicle emission tests could affect 11 million of its cars worldwide. Platinum is used in diesel catalysts.

Platinum was down 3.4 percent at $932.75 an ounce, after falling to its lowest since January 2009 at $929.50.

Source : Reuters

Asia Futures Point to More Stock Losses Before China Factory PMI

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Asian stocks were poised to extend the global equity selloff, with index futures from Australia to the U.S. sliding as the anxiety that marked last month’s market turmoil returns.

Futures on Asian benchmarks slid at least 1 percent in recent trading, after commodity producers and car stocks drove the Standard & Poor’s 500 Index down 1.2 percent to an almost two-week low. Demand for the safest investments continued Wednesday, with Australian and New Zealand bonds tracking a rebound in Treasuries and the yen holding gains. Copper futures hovered near their lowest price this month with a private gauge projected to show a seventh straight month of contraction in China’s manufacturing sector.

Renewed concern over China’s faltering economy, the source of last month’s market ructions, sank commodities on Tuesday, with equity volatility spiking from the U.S. to Europe as the scandal over car emissions standards engulfing Volkswagen AG also frayed nerves. Markets have been swinging since the Federal Reserve stood pat on interest rates last week, as officials proclaiming the strength of the U.S. economy and prospects for a hike this year muddy the waters. Japanese markets remain closed for holidays Wednesday.

Source : Bloomberg

U.S. Stocks Retreat Amid Global Slump in Auto, Commodity Shares

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U.S. stocks fell, with raw-material shares dragged lower as commodities retreated, a selloff in biotechnology shares deepened and Volkswagen AG’s diesel-emissions cheating scandal continued to rattle global auto stocks.

The Standard & Poor’s 500 Index lost 1.2 percent to 1,942.62 at 4 p.m. in New York, trimming a decline in the final hour after falling as much as 1.9 percent. It’s the third drop in four days, sending the gauge to a two-week low. A gauge of volatility posted its biggest gain in a month.

Equities got a boost Monday after a quartet of Fed officials talked up prospects for higher interest rates in 2015, just days after the central bank jolted investors by citing global market turmoil and a slowdown in China as reasons for standing pat. Their remarks suggested continued improvement in the domestic economy may overshadow concerns about global conditions.

The central bank’s bid for greater transparency about its criteria for a rate increase has left markets twitching with every economic report amid an expanding Fed checklist and conflicting U.S. data. Fed Chair Yellen said last week that policy makers would scrutinize slowing growth in China and emerging markets for risks that could spill over to the U.S.

Meanwhile, the market remains unconvinced a liftoff will take place this year after the Fed’s decision and its dovish statement. Traders are pricing in a roughly 41 percent probability of a rate increase by the Federal Open Market Committee’s December meeting, compared with 64 percent on Sept. 16 before the policy decision.

Source : Bloomberg

U.S. Stocks Retreat Amid Global Slump in Auto, Commodity Shares

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U.S. stocks fell, with raw-material shares dragged lower as commodities retreated, a selloff in biotechnology shares deepened and Volkswagen AG’s diesel-emissions cheating scandal continued to rattle global auto stocks.

Fiat Chrysler Automobiles NV fell 6.2 percent, while Ford Motor Co. and General Motors Co. lost at least 2.8 percent. Dow Chemical Co. and Alcoa Inc. dropped more than 1.3 percent amid sliding commodity prices. The Nasdaq Biotechnology Index sank 2.9 percent after losing 4.4 percent Monday. Apple Inc., Google Inc. and Facebook Inc. declined at least 1.9 percent.

The Standard & Poor’s 500 Index lost 1.4 percent to 1,939.39 at 12:22 p.m. in New York, after rising 0.5 percent yesterday. The Dow Jones Industrial Average slid 216.33 points, or 1.3 percent, to 16,293.86. The Nasdaq Composite Index slumped 1.8 percent. A gauge of volatility was headed for its biggest gain in a month.

Source : Bloomberg