Aust dollar Slips on Oil, RBA

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The Australian dollar has drifted lower following the Reserve Bank’s widely anticipated decision to leave interest rates unchanged for the tenth straight month.

At 700am (AEDT) on Wednesday, the local unit was trading at US70.50c, down from US70.70c on Tuesday.

At its first board meeting of 2016, the central bank on Tuesday left interest rates unchanged at a record low of two per cent.

Source: BusinessSpectator

Oil Tumbles Below $30 a Barrel as U.S. Crude Supply Seen Rising

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Oil dropped below $30 a barrel in New York before government data forecast to show U.S. crude stockpiles expanded, exacerbating a global glut. Gasoline tumbled to a seven-year low.

Crude fell 5.5 percent, adding to Monday’s 6 percent slump. Supplies probably rose by 4 million barrels last week, according to a Bloomberg survey before an Energy Information Administration report Wednesday. The Russian leg of Venezuelan Oil Minister Eulogio Del Pino’s tour to persuade oil exporters to cut output gained little more than pledges for further discussion. BP Plc posted a 91 percent decreasein fourth-quarter earnings, while Exxon Mobil Corp.’s fell 58 percent.

Oil has lost 19 percent this year amid volatility in global markets, brimming U.S. crude supplies and the outlook for increased exports from Iran after the removal of international sanctions. Royal Dutch Shell Plc had its debt rating cut to the lowest since Standard & Poor’s began coverage in 1990. Chevron Corp. and Hess Corp. were among the U.S. oil companies that had their rating trimmed by S&P Tuesday.

West Texas Intermediate for March delivery fell $1.74 to settle at $29.88 a barrel on the New York Mercantile Exchange. It’s the lowest close since Jan. 21. The volume of all futures traded was 47 percent above the 100-day average.

Brent for April settlement dropped $1.52, or 4.4 percent, to end the session at $32.72 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at an $1.11 premium to April WTI.

Source: Bloomberg

Asian Stocks Decline as Global Selloff Spreads Amid Oil's Rout

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Asian stocks fell, with the regional benchmark index heading for a second day of declines, as the rout in oil spurred a global selloff of risk assets amid deepening concern that global growth is weakening.

The MSCI Asia Pacific Index dropped 1.1 percent to 120.47 as of 9:08 a.m. in Tokyo. Oil’s collapse and worries about a China slowdown have continued to roil markets around the world, with the regional gauge sliding 7.8 percent this year through Tuesday. The slump in crude has taken its toll on energy producers, with BP Plc’s fourth-quarter profit tumbling 91 percent and Exxon Mobil Corp. cutting its drilling budget to a 10-year low.

The Bank of Japan surprised markets with a stimulus boost last week, providing relief to turbulent markets around the world. The upturn was short-lived, as anxiety that the drop in oil and wider financial turmoil will impact growth took root. Citigroup’s Economic Surprise Index indicates data in Group of 10 economies is falling short of estimates by the most since May 2013. A gauge of service industries in China is due Wednesday.

Japan’s Topix index dropped 2 percent, heading for its second day of declines. South Korea’s Kospi index lost 0.7 percent. Australia’s S&P/ASX 200 Index slid 1.2 percent. New Zealand’s benchmark gauge retreated 0.6 percent.

Futures on the FTSE China A50 Index fell 0.9 percent in most recent trading, while those for Hong Kong’s Hang Seng Index dropped 1.3 percent. Chinese stocks climbed in light trading on Tuesday, led by technology and industrial companies, as the central bank injected cash into the financial system before markets close for holidays next week. The Shanghai Composite Index rose 2.3 percent, paring its decline this year to 22 percent.

Source : Bloomberg

Japan Stocks Fall Second Day as Oil Tumbles on Growth Concerns

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Japanese stocks fell for a second day, following global equities lower, as investors shunned risk assets amid the biggest two-day drop in oil prices in almost seven years.

The Topix index dropped 1.6 percent to 1,429.06 as of 9:02 a.m. in Tokyo, as investor jitters about the pace of global economic growth stymied a short-lived rally after the Bank of Japan’s surprise decision on Friday to boost stimulus. All of the 33 Topix industry groups fell. The Nikkei 225 Stock Average lost 1.4 percent to 17,498.25. The yen traded at 119.89 per dollar after strengthening for 0.9 percent on Tuesday.

Commodity stocks led losses after crude oil capped an 11 percent plunge over two days on Tuesday in New York. It is falling again Wednesday. The Topix Mining Index, which includes energy explorers such as Inpex Corp., slumped 14 percent this year through Tuesday, tracking the rout in crude prices.

Source : Bloomberg

Hong Kong shares end lower despite rebound in mainland stocks

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Hong Kong shares ended lower on Tuesday, uninspired by a sharp rebound in mainland stocks, as energy shares led falls.

The Hang Seng index fell 0.8 percent, to 19,446.84, while the China Enterprises Index lost 1.1 percent, to 8,058.83 points.

Source : Reuters