WTI Crude Declines as Iran Sees Further Slump on OPEC Division

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West Texas Intermediate resumed its fall as Iran predicted a further slump in prices if solidarity falters among the Organization of Petroleum Exporting Countries.

Futures slid as much as 1.2 percent in New York after rising the first time in four days yesterday. Prices may decline to as low as $40 a barrel amid a price war or if divisions emerge in OPEC, said Mohammad Sadegh Memarian, Irans oil ministry head of petroleum market analysis. The 12-member group may need to call an extraordinary meeting in the first quarter if crude continues to drop, according to Energy Aspects Ltd.

Oil is trading in a bear market as Saudi Arabia, which led OPECs decision to maintain rather than cut output at a meeting last month, offers discounts on its crude as it defends market share against U.S. producers pumping at the fastest rate in more than three decades. The Energy Information Administration cut its price forecasts for 2015 amid the slump.

WTI for January delivery fell as much as 78 cents to $63.04 a barrel in electronic trading on the New York Mercantile Exchange and was at $63.14 at 11:18 a.m. in Sydney. The contract increased 77 cents to $63.82 yesterday. Prices are down 36 percent this year.

Brent for January settlement gained 65 cents, or 1 percent, to $66.84 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $3.02 to WTI.

U.S. crude stockpiles expanded by 4.4 million barrels last week, the industry-funded American Petroleum Institute reported yesterday, according to Anthony Headrick, an analyst at CHS Hedging. Government data today may show supplies shrank by 2.7 million, a Bloomberg News survey shows.

Source : Bloomberg

Yen Advances Most in 18 Months on Safety Demand; Ruble Tumbles

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The yen gained the most versus the dollar in 18 months as investors sought safety with China tightening lending rules and political turmoil increasing in Greece.

Japans currency rose versus all of its major peers. The ruble fell even amid speculation President Vladimir Putin will impose capital controls to stem its 39 percent plunge this year. Brazils real climbed from a three-week low as the central-bank president didnt rule out extending an intervention program supporting the currency. The greenback slipped from the strongest level in two years versus the euro. Colombias peso tumbled.

The yen gained 0.9 percent to 119.59 per dollar at 4:07 p.m. New York time after adding 2.3 percent, the biggest gain since June 2013. It appreciated 0.6 percent yesterday. The yen strengthened 0.5 percent to 147.93 per euro. The dollar weakened 0.4 percent to $1.2371 per euro after touching $1.2247 yesterday, the strongest level since August 2012.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 trading partners, fell 0.4 percent to 1,115.73. It closed on Dec. 5 at 1,122.34, the highest since March 2009.

Source : Bloomberg

Asian Stocks Slide Amid Global Equity Retreat on China, Greece

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Asian stocks fell for a second day as a retreat in global equities extended after stocks tumbled in China, a plunge in Greek shares spread to the rest of Europe and the yen jumped amid haven demand.

The MSCI Asia Pacific Index dropped 0.6 percent to 138.87 as of 9:00 a.m. in Tokyo after losing 0.3 percent the previous day. China shares tumbled the most since 2009 yesterday after government moves to tighten lending requirements sparked speculation over an economic slowdown. The Stoxx Europe 600 Index sank 2.3 percent as a measure of Greek shares posted its biggest drop in 27 years. The yen gained as much as 2.2 percent against the dollar before paring its advance.

Japans Topix index fell 1.1 percent after the yen rose versus all but one of its 31 major peers yesterday. South Koreas Kospi index slipped 0.3 percent. Australias S&P/ASX 200 Index dropped 1 percent, while New Zealands NZX 50 Index slid 0.5 percent.

Source: Bloomberg

Japan Stocks Fall as Yen and Gold Gain on Global Risk Aversion

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Japanese stocks fell as investors looking for safe-haven investments drove the yen higher, damping the outlook for exporters earnings.

The Topix index declined 1.2 percent to 1,419.26 as of 9:09 a.m. in Tokyo, headed for the biggest two-day drop since October. The Nikkei 225 Stock Average lost 1.3 percent to 17,580. The yen traded at 119.41 per dollar after staging its steepest intraday rally since June 2013 yesterday before paring gains to finish 0.8 percent higher.

The yen, regarded as a haven investment along with gold, strengthened as much as 2.2 percent yesterday against the dollar. Gold futures jumped to a six-week high. MSCIs gauge of global equities fell to an almost one-month low yesterday as China tightening lending requirements stoked speculation over a slowdown in Asias biggest economy.

Source : Bloomberg

S&P 500 Little Changed as Tech, Energy Offset Global Rout

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The S&P 500 fell less than 0.1 percent to 2,059.71 at 4 p.m. in New York after yesterday sliding the most in seven weeks. The Dow Jones Industrial Average dropped 52.05 points, or 0.3 percent, to 17,800.43. The Nasdaq 100 Index added 0.4 percent and the Russell 2000 Index of small companies rallied 1.8 percent, the most since October.

Global equities fell after China said certain lower-rated bonds can no longer be used as collateral for some short-term loans, sparking a selloff in riskier debt that spread to government notes and stocks. Stocks in China tumbled the most since 2009 and the MSCI All-Country World Index dropped 0.8 percent.

The Stoxx Europe 600 Index lost 2.2 percent as Tesco Plc slumped, energy companies extended losses and U.K. manufacturing output unexpectedly fell for the first time in five months. Meanwhile, Greeces move to bring forward the process for choosing a new head of state risks triggering parliamentary elections that could put in power a party that opposes the terms of the nations bailout by the European Union.

Source : Bloomberg