Oil Trades Near 5-Year Low as Russia Mirrors OPEC Output Policy

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Oil traded near a five-year low as Russia reiterated that it will keep crude output steady next year, mirroring OPECs strategy to refrain from curbing supply to tackle a global glut.

Futures fell as much as 1.4 percent in New York after sliding below $55 a barrel yesterday for the first time since May 2009. Production from Russia, the worlds largest crude producer, will be similar to this years 10.6 million barrels a day, Energy Minister Alexander Novak said. Iran is said to be offering supplies to Asia at the deepest discount in 14 years, taking a cue from Saudi Arabia in reducing price differentials.

Oil has slumped 45 percent this year as a surge in shale drilling lifted U.S. output to a three-decade high amid slowing global demand growth. Leading members of the Organization of Petroleum Exporting Countries such as Saudi Arabia have resisted calls from smaller producers including Venezuela and Ecuador to cut output quotas to stem the price rout.

West Texas Intermediate for January delivery dropped as much as 76 cents to $55.17 a barrel in electronic trading on the New York Mercantile Exchange and was at $55.37 at 8:45 a.m. Singapore time. The contract gained 2 cents to $55.93 yesterday. Total volume was about 59 percent below the 100-day average. Prices are set for the biggest annual loss since 2008.

Brent for January settlement expired yesterday after declining $1.20, or 2 percent, to $59.86 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude ended the session at a premium of $3.93 to WTI.

Source : Bloomberg

Yen Retreats From Four-Week High Before Fed; N.Z. Dollar Slides

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The yen retreated from the strongest in four weeks against the dollar before the Federal Reserve concludes a two-day policy meeting today.

The yen has been the biggest gainer among the 10-currency Bloomberg Correlation-Weighted Indexes in the past week as tumbling oil added to concern the global economy will falter, boosting demand for havens. The ruble collapsed to a record yesterday even after Russia increased borrowing costs to the most since 1998. A gauge of emerging-market currencies fell to a 12-year low. New Zealands kiwi declined after the South Pacific nations current-account deficit widened.

The yen dropped 0.5 percent to 116.98 per dollar at 9:26 a.m. in Tokyo from yesterday, when it touched 115.57, the strongest since Nov. 17. Japans currency slid 0.4 percent to 146.27 per euro after advancing 1.6 percent in the previous two sessions. The dollar was little changed at $1.2503 per euro.

New Zealands kiwi fell 0.2 percent to 77.82 U.S. cents.

Source : Bloomberg

Asia Stocks Rise Before Fed as Energy, Utility Shares Lead Gains

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Asian stocks rose before a Federal Reserve policy decision as gains in energy and utility shares outweighed a decline in Japanese equities spurred by a stronger yen.

The MSCI Asia Pacific Index added 0.1 percent to 134.49 as of 9:09 a.m. in Tokyo after dropping 2 percent the previous two days. Japans Topix index sank 0.5 percent after the yen surged 1.2 percent versus the dollar yesterday. Russias currency plummeted to a record yesterday, defying a surprise interest-rate increase, while crude resumed declines today. The Fed will drop a pledge to keep interest rates near zero for a œconsiderable time, according to economists.

South Koreas Kospi index rose 0.3 percent. Australias S&P/ASX 200 Index gained 0.4 percent, while New Zealands NZX 50 Index was little changed.

Markets in Hong Kong and China are yet to open. Futures on Hong Kongs Hang Seng Index lost 0.2 percent in their most recent trading session, and contracts on the Hang Seng China Enterprises Index declined 0.6 percent. The Hang Seng gauge entered a correction yesterday after extending a decline from a Sept. 3 high to 10 percent.

Source : Bloomberg

Japanese Stocks Fall as Yen Near Four-Week High on Haven Demand

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Japanese stocks fell for a third day after the yen reached a four-week high as investors bought haven assets amid plunges in oil and the Russian ruble that are deepening concerns that the global economy is faltering.

The Topix slipped 0.5 percent to 1,346.98 at 9:01 a.m. in Tokyo, after closing yesterday at a six-week low. All but seven of the 33 Topix industry groups retreated. The Nikkei 225 Stock Average lost 0.5 percent to 16,675.87. The yen traded at 116.61 per dollar after advancing 1.2 percent yesterday. Investors are awaiting the conclusion of a Federal Reserve meeting today for signals on the outlook for U.S. interest rates.

Brent crude slipped below $60 for the first time in five years while U.S. oil was near its lowest since May 2009. Russias biggest interest-rate increase since 1998 failed to arrest the rubles slide amid the plunge in oil. The ruble sank beyond 80 per dollar for the first time, even after the Bank of Russia boosted its key rate by 6.5 percentage points.

Futures on the Standard & Poors 500 Index added 0.2 percent today. The underlying U.S. equity measure dropped 0.9 percent yesterday, lashing investors with the biggest stock swings in two months.

Source : Bloomberg

U.S. Stocks Decline as Technology Losses Offset Energy Rally

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U.S. stocks fell as declines in technology and consumer-discretionary companies offset a rebound in energy shares before tomorrows monetary decision by Federal Reserve policy makers.

For a second day, investors were whipsawed by the biggest stock swings in two months. The S&P 500 fell 0.7 percent in the first 10 minutes of trading then rebounded, surging as much as 1.4 percent as crude erased losses. The index reversed gains in the early afternoon, climbed again and then headed lower in the final hour. The 44-point move from top to bottom is the biggest for any day since mid-October, when the index was ending its worst retreat in 2014.

Microsoft Corp., Google Inc. and Facebook Inc. dropped at least 2.8 percent as technology shares slumped. Amazon.com Inc. lost 3.4 percent. Range Resources Corp., Nabors Industries Ltd. and Diamond Offshore Drilling Inc. paced gains among energy companies. Boeing Co., 3M Co. and CVS Health Corp. increased more than 1.7 percent after raising their dividends.

The S&P 500 fell 0.8 percent to 1,973.07 at 4 p.m. in New York. The Dow Jones Industrial Average dropped 103.14 points, or 0.6 percent, to 17,077.70. The technology-heavy Nasdaq 100 Index tumbled 1.6 percent. Trading in S&P 500 companies was 39 percent above the 30-day average for this time of the day.

Source : Bloomberg