Gold Rises Second Day on Haven Buying as Risk Aversion Resumes

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Gold climbed a second day as a global selloff in equities deepened, prompting a return to haven assets.

Bullion for immediate delivery rose 0.3 percent to $1,092.03 an ounce at 9:02 a.m. in Singapore, according to Bloomberg generic pricing. The metal fell 1.4 percent last week.

Gold investors have grappled with fluctuations in global equities this year, driven by weakness in China, and sinking crude prices. Markets have begun the week gripped by a fresh bout of risk aversion, with Australian and Japanese stocks and U.S. index futures lower, and Brent crude below $28 a barrel. The U.S. economy is weaker than expected though not likely headed for recession in 2016, Mohamed A. El-Erian, Allianz SE’s chief economic adviser, said on Fox News’s “Sunday Morning Futures.”

An index of the U.S. currency against 10 of its peers is advancing for a fourth week, the longest stretch since July. A stronger dollar typically damps gold’s appeal.

Source: Bloomberg

Dolar Jatuh ke Posisi Terendah Satu Tahun Terhadap Yen

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Dolar AS turun ke level terendah satu tahun terhadap yen pada hari Jumat karena investor mencari keamanan yang dirasakan dari mata uang Jepang di tengah kegaduhan dalam komoditas dan ekuitas pasar global.

Harga minyak mentah anjlok 5,7%, untuk menetap di $ 29,42 dan kehilangan 11,3% selama seminggu terakhir. Sementara itu, saham-saham AS turun ke level terendah sejak Agustus.

Data penjualan ritel dan manufaktur mengecewakan dari daerah New York menambahkan tekanan jual pada mata uang. Saraf investor berderak lebih lanjut, saham Cina mencapai wilayah bear-market pada hari Jumat.

Greenback turun 1% terhadap yen ke level 117,02 di akhir perdagangan New York dari 118,08 yen pada Kamis malam di New York. Dolar juga turun terhadap euro. Euro naik 0,55% ke $ 1,0921 di akhir perdagangan New York dari $ 1,0865 pada hari Kamis.(frk)

Sumber: MarketWatch

Asian Equities Rout Deepens With Japan Poised for Bear Market

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Asian stocks slumped, with Japanese shares poised for joining China in a bear market, as concern grew over the strength of the global economy amid the continuing collapse in oil prices.

The MSCI Asia Pacific Index lost 1.4 percent to 118.45 as of 9:17 a.m. in Tokyo, extending this year’s slide to 10 percent. Japan’s Nikkei 225 Stock Average declined 2.8 percent, set for a drop of 20 percent from a June peak. Australia’s S&P/ASX 200 Index retreated 1 percent, bringing its decline from an April high to 19 percent. A bear market is typically defined as a drop of more than 20 percent.

Brent oil is below $30 a barrel for the first time in 12 years as global growth worries roil equity, bond and currency markets. Investors awaited 2015 gross domestic product estimates from China on Tuesday as it struggles to boost a slowing economy and money managers debate how many times the Federal Reserve will raise interest rates this year.

Traders have been whipsawed in 2016, with equities around the world off to their worst start to a year on record as oil plummeted to levels last seen more than a decade ago and China struggled to maintain control over its markets.

The Shanghai Composite Index entered a bear market last week, for the second time in seven months, erasing gains from state support efforts amid persistent investor concern over volatility. China’s stock-market watchdog has acknowledged ineptitude and loopholes within its regulatory system after a review of the turmoil that has rocked local markets since June.

The MSCI Asia Pacific Index has been in a bear market since August, as global equities plummeted after China devalued the yuan. The gauge is trading at the lowest level since 2012. Singapore has had one of the worst performances among global markets over the past year, with the Straits Times Index down more than 25 percent from a peak.

Source: Bloomberg

Japanese Stocks Slide Toward Bear Market as Global Rout Deepens

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Japanese stocks tumbled toward a bear market as a global selloff deepened amid a collapse in commodity prices that has pushed oil to a 12-year low.

The Topix dropped 2.5 percent to 1,367.79 as of 9:24 a.m. in Tokyo, taking its loss since a high on Aug. 10 to 19 percent. The Nikkei 225 Stock Average fell 2.5 percent to 16,711.30, declining 20 percent since its high on June 24. The yen traded at 116.95 per dollar, after rising 0.9 percent on Friday.

All 33 industry groups on the Topix sank, led by brokerages, shippers and iron and steel producers. Heavy machinery maker IHI Corp. tumbled 6.2 percent to be among the biggest declines on the Nikkei 225. SoftBank Group Corp. slumped 6.1 percent after subsidiary Sprint Corp. plunged 10 percent in New York on Friday. Central Japan Railway Co. was the only stock to rise on the Nikkei 225, adding 0.1 percent.

E-mini futures on the Standard & Poor’s 500 Index lost 0.4 percent after the underlying gauge slid 2.2 percent on Friday. U.S. markets are closed Monday for a holiday.

Source: Bloomberg

U.S. Stocks Slump to Lowest Since August After Retail Sales Data

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U.S. stocks dropped, with the Standard & Poor’s 500 Index falling to its lowest level since Aug. 25, as the rout in oil persisted and data showing falling retail sales rekindled concern about the health of the economy.

The S&P 500 pared earlier losses that sent it 3.3 percent lower, as technology and energy stocks led losses. Goldman Sachs Group Inc. fell 3.6 percent after agreeing to settle a U.S. probe into its handling of mortgage-backed securities, a move that will cut its fourth-quarter profit by about $1.5 billion. Citigroup Inc. and Wells Fargo & Co. lost at least 3.6 percent even after reporting quarterly earnings that topped projections. Wal-Mart Stores Inc. dropped 1.8 percent after saying it plans to close 269 stores.

The worst start to a year in U.S. equities on record has left them trading at the most attractive level versus bonds in a year based on one valuation measure. Dividend yields in the S&P 500 have climbed 30 basis points above the yield offered by 10-year Treasuries, a reversal from just last week when the payout from bonds was higher. The S&P 500’s multiple based on profits is also at a cheaper level. The gauge is trading at 16.8 times reported profits, a 8.6 percent discount to its average multiple over the last year.

The S&P 500 dropped 2.2 percent to 1,880.27 at 4 p.m. in New York, after earlier falling as much as 3.3 percent to the lowest level since April 2014. Volume on U.S. exchanges was 43 percent higher than the three-month average. The Dow Jones Industrial Average slid 391 points, or 2.4 percent, to 15,988.08, while the Nasdaq Composite index dropped to its lowest since October 2014.

Source: Bloomberg