Gold Decline as Retail Sales Gain Most in 8 Months

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Gold futures fell for the second straight day as gains in the U.S. economy boosted speculation that the Federal Reserve will raise interest rates soon.

Retail sales in November jumped the most in eight months, and the number of Americans filing for unemployment benefits fell to a three-week low, government reports showed today. The dollar and the Standard & Poors 500 Index of stocks rose, eroding the appeal of gold as an alternative investment. Yesterday, the metal dropped 0.2 percent.

On Dec. 9, gold reached a six-week high as global equities tumbled, increasing demand for a haven. Swings in oil prices have boosted volatility in the metal as investors weigh muted inflation. Fed officials will meet next week to discuss the timing of the first benchmark rate increase since 2006.

Gold futures for February delivery fell 0.3 percent to settle at $1,225.60 an ounce at 1:48 p.m. on the Comex in New York. Two days ago, the price reached $1,239, the highest since Oct. 23.

Source : Bloomberg

Dollar Snaps 3-Day Skid as Retail Sales Top Forecasts; Yen Falls

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The dollar snapped a three-day skid after U.S. retail sales climbed the most in eight months, further evidence of a strengthening economy as the Federal Reserve considers its first interest-rate increase since 2006.

The greenback gained versus most major peers as the number of Americans filing for jobless benefits dipped to a three-week low before the central bank meets Dec. 16-17. The yen fell for the first time in four days as Prime Minister Shinzo Abes Liberal Democratic Party was poised for re-election this weekend. Norways krone slipped below 9 per euro for the first time since 2009 on an unexpected interest-rate cut. Russias ruble plunged to a record as emerging-market currencies fell.

The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, rose 0.7 percent to 1,118.93 at 2:29 p.m. New York time, after falling to 1,108.21, the lowest since Dec. 2.

The yen weakened 1.3 percent to 119.33 per dollar after surging 3 percent the previous three days. Japans currency depreciated 0.7 percent to 147.75 per euro. The dollar rose 0.5 percent to $1.2382 per euro.

Source : Bloomberg

Asian Stocks Rise as U.S. Data Boost Optimism; Japan Fluctuates

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Asian stocks rose after U.S. data on retail sales and unemployment claims boosted optimism in the worlds largest economy. Japanese shares fluctuated ahead of the weekends election.

The MSCI Asia Pacific Index advanced 0.1 percent to 136.89 as of 9:03 a.m. in Tokyo. Energy and materials companies led the regional measure towards a 2.3 percent decline this week through yesterday as oil prices tumbled below $60 a barrel for the first time since July 2009 with Saudi Arabia questioning the need to cut output.

Retail sales rose 0.7 percent in November from the previous month, matching the highest estimate of economists surveyed by Bloomberg, as consumers snapped up electronics, clothing and furniture. Applications for unemployment insurance benefits declined by 3,000 last week to 294,000. Claims have been below 300,000 for 12 of the past 13 weeks.

West Texas Intermediate crude slid 1.3 percent today to $59.16 per barrel after yesterday dropping 1.6 percent. Oils collapse into a bear market has been exacerbated as Saudi Arabia, Iraq and Kuwait, OPECs three largest members, offered the deepest discounts on exports to Asia in at least six years. The market will correct itself, according to Saudi Arabian Oil Minister Ali Al-Naimi.

Source : Bloomberg

Japan Stocks Gain as Yen Weakens on U.S. Sales, Election Looms

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Japanese stocks rose ahead of a weekend election as the yen weakened against the dollar and the U.S. reported the biggest jump in retail sales in eight months.

The Topix index advanced 0.1 percent to 1,398.35 as of 9:04 a.m. in Tokyo, paring this weeks loss to 3.3 percent. The Nikkei 225 Stock Average rose 0.5 percent to 17,344.64. The yen lost 0.3 percent to 119.01 per dollar after falling 0.7 percent yesterday as data showed U.S. consumers spent more in November than expected. Crude oil fell below $60 a barrel for the first time since 2009.

Japan heads for an election on Dec. 14 after Prime Minister Shinzo Abe last month called for a referendum on his economic policies. The economy has been mired in a recession since an April sales-tax increase.

Abes coalition will win more than a two-thirds majority, the Nikkei newspaper reported today, citing a survey result and echoing almost every other media forecast in pointing to a landslide victory.

Source: Bloomberg

U.S. Stocks Rebound as Retail Sales Gain Overshadows Oil Slide

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U.S. stocks rebounded from the worst day in seven weeks, as better-than-forecast data on retail sales and unemployment boosted confidence in the economy to overshadow a renewed selloff in oil.

Benchmark indexes retreated from their highs of the day after U.S. crude dropped below $60 a barrel for the first time since 2009, erasing a rally in energy shares. Urban Outfitters Inc. led a rally among retailers in the Standard & Poors 500 Index.

The S&P 500 added 0.5 percent to 2,035.28 at 4 p.m. in New York after climbing 1.5 percent earlier. The Dow Jones Industrial Average rose 64.15 points, or 0.4 percent, to 17,597.30, trimming a prior gain of 1.3 percent.

The S&P 500 slid 1.6 percent yesterday as a collapse in oil prices rippled through the financial markets, sending all 10 industry groups in the benchmark equity gauge down at least 1 percent. The Chicago Board Options Exchange Volatility Index, the measure of options prices known as the VIX, slipped 1.8 percent to 18.89 after spiking 24 percent yesterday.

Source : Bloomberg