Oil Rises Amid Talk That OPEC, Russia to Reconsider Production

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Oil climbed after Iraq’s oil minister said at a conference in Kuwait that Saudi Arabia and Russia are now more flexible about cooperating to cut output.

Futures rose 3.7 percent in New York. Saudi Arabia and Russia, the world’s biggest oil producers, have become more flexible about collaborating to trim output as crude prices have fallen to unforeseen levels, Iraqi Oil Minister Adel Abdul Mahdi said Tuesday. Russia could work with OPEC to remove supply, OAO Lukoil Vice President Leonid Fedun told state news agency Tass.

Oil is down 15 percent this year as volatility in global markets adds to concern over ample U.S. stockpiles, unfettered Saudi and Russian output and an expected revival in Iranian shipments after the end of sanctions. U.S. crude supplies probably rose by 4 million barrels last week, a Bloomberg survey showed before an Energy Information Administration report.

West Texas Intermediate oil for March delivery rose $1.11 to close at $31.45 a barrel on the New York Mercantile Exchange. The contract retreated 5.8 percent on Monday after the biggest two-day rally in more than seven years. Total volume traded was 30 percent above the 100-day average at 2:50 p.m.

Brent for March settlement advanced $1.30, or 4.3 percent, to $31.80 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at a 35-cent premium to WTI.

Source: Bloomberg

Gold Futures Log Best Closing Price in Nearly 3 Months

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Gold futures on Tuesday posted their best settlement since early November as jitters surrounding the oil market and China helped make the metal more attractive to investors.

February gold rose $14.90, or 1.4%, to settle at $1,120.20 an ounce–its highest settlement price since Nov. 2, according to FactSet data.

The climb came amid a volatile day on the financial markets, with oil sliding below $30 a barrel before staging a rally. Oil’s early decline had helped feed a sharp stock selloff in China, where the Shanghai Composite Index closed 6.4% lower.

Source : Marketwatch

U.S. Stocks Rise Amid Earnings as Energy Shares Rebound With Oil

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U.S. stocks rallied, with the Dow Jones Industrial Average posting its strongest gain in more than seven weeks, amid better-than-forecast earnings from companies ranging from 3M Co. to Coach Inc. while energy shares rebounded with oil after a selloff Monday.

The Standard & Poor’s 500 Index added 1.4 percent to 1,903.62 at 4 p.m. in New York, recovering from a 1.6 percent drop yesterday.

Tuesday’s rally provided a reprieve for the S&P 500, which remains on track for its worst January since 2009 as a plunge in oil prices exacerbated worries that China’s slowdown will weigh on global growth. Better-than-forecast earnings reports and economic data today helped soothe some of those concerns, while Federal Reserve officials gathered in Washington for a two-day policy meeting.

Policy makers are widely expected to leave rates steady, though investors will be scouring Wednesday’s statement for hints officials are backing away from the path of four rate increases in 2016. Signals last week that central banks in Europe and Japan stand ready to boost stimulus to tamp down market volatility fueled a flight to risk assets after equities had the worst two-week start to a year on record.

Source: Bloomberg

Miners Lead Europe Stock Gains While Siemens Surges on Earnings

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A rebound in commodity and energy producers led the advance in European equities, while earnings at Siemens AG and Royal Philips NV further boosted sentiment.

The Stoxx Europe 600 Index climbed 0.9 percent at the close of trading in London. It erased a decline of as much as 2 percent as crude rose above $30 a barrel after Iraq’s oil minister said Saudi Arabia and Russia are now more flexible about cooperating to cut output.

Siemens surged 8.6 percent -- the most since 2008 -- after unexpectedly raising its annual profit forecast, signaling confidence that it can ride out a slowdown in China and drop in oil. Philips jumped 6.1 percent after reporting that quarterly earnings rose more than estimated on growth in medical equipment.

Fluctuations in oil have been weighing on stocks worldwide as the two asset classes have become the most correlated since 2013. Crude’s decline on Monday halted the Stoxx 600’s biggest two-day rebound since 2011, fueled by speculation of more European Central Bank stimulus.

Source: Bloomberg

U.S. Stocks Rally Amid Earnings as Crude Shrugs Off China Slump

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U.S. stocks advanced with commodities from crude to copper as investors looked past another rout in Chinese stocks to focus on corporate earnings and the start of the Federal Reserve’s first policy meeting since turmoil gripped financial markets.

The Standard & Poor’s 500 Index extended gains after data showed an increase in consumer confidence. The Dow Jones Industrial Average jumped more than 200 points as 3M Co. and Procter & Gamble Co. surged after reporting results. Treasuries headed for the best monthly gain in a year on speculation the Fed will signal a patient approach to raising rates. Stocks in Europe climbed as crude topped $31 a barrel in New York.

The S&P 500 climbed 1.1 percent at 12 p.m. in New York, paring the U.S. benchmark gauge’s monthly decline to 7.1 percent. Apple Inc. is among 23 companies from the index posting results on Tuesday.

The index has lost more than 8 percent since the Fed raised borrowing costs last month. The probability of a rate increase this week has stayed low after the December liftoff, and chances the Fed will raise in March have fallen to lower than one-in-four from even odds at the start of the year.

Source: Bloomberg