Aust dollar slips below US83c

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The Australian dollar is back below US83c as oil prices come under further pressure after OPEC cut its 2015 demand forecast.

At 7am (AEDT) on Thursday, the local currency was trading at US82.90c, down from US83.20c on Wednesday.

"Oil was the big story of the night, down again large," National Australia Bank senior economist David de Garis said.

"Brent crude was down... to $US63.40 as OPEC cut its demand forecast to a 12-year low."

Locally, all eyes on Thursday will be on the release of jobs figures for November, although recent volatility in the figures have made them less reliable.

Source : MarketsSpectator

WTI Trades Near $61 as Saudis Question Need for Production Cut

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West Texas Intermediate traded near $61 a barrel as Saudi Arabia questioned the need for an output cut, adding to signs OPECs biggest member will defend market share.

Futures were little changed in New York after declining 4.5 percent yesterday, the most since Nov. 28. The market will correct itself, Saudi Arabian Oil Minister Ali Al-Naimi said. The Organization of Petroleum Exporting Countries reduced a forecast for how much crude it will need to produce next year by about 300,000 barrels a day to 28.9 million a day, the least since 2003. Brent closed below $65 a barrel yesterday.

Oil is trading in a bear market as the biggest producers in the 12-member group offer discounts to Asian customers amid the highest rate of U.S. output in more than three decades. Kuwait has followed Saudi Arabia and Iraq in cutting export prices after OPEC agreed at a Nov. 27 gathering not to reduce supply.

WTI for January delivery was at $61.18 a barrel in electronic trading on the New York Mercantile Exchange, up 24 cents at 10:55 a.m. in Sydney. The contract fell $2.88 to $60.94 yesterday, the lowest close since July 2009. Prices have decreased 38 percent this year.

Brent for January settlement lost $2.60, or 3.9 percent, to $64.24 a barrel on the London-based ICE Futures Europe exchange yesterday, the lowest since July 2009. The European benchmark crude ended the session at a premium of $3.30 to WTI.

Source : Bloomberg

Japan Stocks Fall on Oil Plunge as Yen Advances for Fourth Day

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Japanese stocks fell after oil prices dropped to a five-year low and as the yen strengthened for a fourth day, driving down energy shares and exporters.

The Topix index declined 1.5 percent to 1,386.01 as of 9:05 a.m. in Tokyo, headed for a third day of losses, with all but one of its 33 industry groups dropping. The Nikkei 225 Stock Average tumbled 1.4 percent to 17,171.49. The yen rose 0.3 percent to 117.52 per dollar after jumping 1.6 percent yesterday to cap its biggest three-day rally since June 2013. West Texas Intermediate oil sank 4.5 percent to $60.94 a barrel yesterday.

WTI crude has plunged from $100 a barrel since the end of July on surging U.S. shale supplies and lower demand amid signs of slowing growth in economies from China to Europe. Weekly data released yesterday showed U.S. crude inventories rose to the highest seasonal level on record, while OPEC cut next years production forecast to the lowest output in 12 years.

The dollar has weakened against the yen this week despite a stronger than expected U.S. jobs report on Dec. 5, which showed employers added the most workers since January 2012. The Federal Reserve is weighing employment growth as it meets next week to decide when the economy will be strong enough to withstand higher interest rates. In contrast, the Bank of Japan boosted stimulus measures on Oct. 31.

Source: Bloomberg

U.S. Stocks Fall Most Since October as Energy Renews Selloff

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U.S. stocks fell, with the Standard & Poors 500 Index sinking the  most in seven weeks, as energy shares renewed a selloff after OPEC cut its forecast on 2015 demand for crude.

The S&P 500 lost 1.6 percent to 2,026.15 at 4 p.m. in New York, the lowest since Nov. 5. The benchmark gauge has slumped 2.4 percent over the past three days, after reaching a record on Dec. 5. The Dow Jones Industrial Average dropped 267.67 points, or 1.5 percent, to 17,533.53. The Dows retreat was its biggest since Oct. 9.

The S&P 500 closed little changed yesterday after reversing a loss of as much as 1.3 percent. The gauge has jumped 9.6 percent in 2014, heading for a third year of gains, fueled by better-than-forecast economic data and corporate earnings.

Data later this week may show U.S. retail sales increased in November, initial jobless claims last week stayed unchanged from a week earlier, and consumer confidence improved this month, according to economists surveyed by Bloomberg.

Source : Bloomberg

U.S. Stocks Fall as Energy Shares Renew Selloff on OPEC Forecast

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U.S. stocks fell, extending the weeks decline for the Standard & Poors 500 Index, as energy shares renewed a selloff after OPEC cut its forecast on 2015 demand for crude.

ConocoPhillips, Exxon Mobil Corp. and Chevron Corp. lost more than 2.2 percent. The five worst performers in the S&P 500 were energy companies. Yum! Brands Inc. sank 4.8 percent after cutting its 2014 profit forecast amid a health scare in China. American Airlines Group Inc. and United Continental Holdings Inc. rose at least 2.9 percent after an industry group said global airlines will make record profit next year.

The S&P 500 lost 0.8 percent to 2,044.06 at 12:58 p.m. in New York. The benchmark gauge has slumped 1.5 percent over the past three days, after reaching a record on Dec. 5. The Dow Jones Industrial Average dropped 151.59 points, or 0.9 percent, to 17,649.61. Trading in S&P 500 companies was 5.8 percent above the 30-day average for this time of the day.

The S&P 500 closed little changed yesterday after reversing a loss of as much as 1.3 percent. The gauge has jumped 11 percent in 2014, heading for a third year of gains, fueled by better-than-forecast economic data and corporate earnings.

Source : Bloomberg