Oil Rebounds From 5-Year Low as Market Most Volatile Since 2011

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Oil rebounded in New York after slumping to a fresh five-year low as prices continued to swing amid the highest trading volatility since 2011.

West Texas Intermediate climbed as much as 2.6 percent, trimming a fourth weekly drop. A measure of expected futures movements and a key gauge of options value was at the highest level since October 2011, data compiled by Bloomberg show. Saudi Arabia and OPEC would find it œdifficult, if not impossible to give up market share by cutting supply, according to Ali Al-Naimi, the oil minister of the Middle East producer.

Oil has lost more than 20 percent since Saudi Arabia led the decision by the Organization of Petroleum Exporting Countries to maintain its collective target at a meeting in Vienna last month. U.S. producers continue to pump crude at record levels, contributing to a global supply glut and boosting speculation they will compete with the 12-member group for market share.

WTI for January delivery rose as much as $1.39 to $55.50 a barrel on the New York Mercantile Exchange and was at $54.88 at 11:17 a.m. Sydney time. The contract, which expires today, slid $2.36 to $54.11 yesterday, the lowest close since May 2009. The more active February future was up 91 cents at $55.27. The volume of all futures traded was about 22 percent below the 100-day average. Prices have decreased 44 percent this year.

Brent for February settlement dropped $1.91, or 3.1 percent, to $59.27 a barrel on the London-based ICE Futures Europe exchange yesterday, also the lowest close since May 2009. The European benchmark crude ended the session at a premium of $4.91 to WTI for the same month.

Source : Bloomberg

Swiss Franc Slips Most Since 2013 on Negative Rates; Pound Rises

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Switzerlands franc weakened the most in 18 months versus the euro after the nations central bank introduced negative interest rates to defend the currencys cap.

The shared currency fell for a second day against the dollar as the Swiss National Bank decision boosted speculation the European Central Bank will expand stimulus measures next year. A gauge of the dollar reached a five-year high amid signals the Federal Reserves pledge to be œpatient on interest rates means an increase next year. Colombias peso gained for a third day to lead emerging-market peers higher. The pound gained as volatility rose to a 15-month high.

Switzerlands move was a œtelltale sign that the SNB is cautious because of the ECB, said David Song, a New York-based currency analyst at FXCM Inc. œThe SNB is going to follow along with the ECB in terms of the easing cycle.

The franc depreciated 0.2 percent to 1.20388 per euro as of 3:56 p.m. New York time after dropping as much as 0.7 percent to 1.20974, the weakest level since Oct. 10. The intraday decline was the most since May 2013.

The dollar appreciated 0.2 percent to 118.83 yen after surging 1.9 percent yesterday, the biggest advance since Oct. 31. The U.S. currency appreciated 0.5 percent to $1.2284 per euro and touched $1.2266, the strongest since Dec. 8. The yen strengthened 0.3 percent to 145.98 per euro.

Source : Bloomberg

Asian Stocks Advance Most in Six Weeks Amid Global Equity Rally

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Asian stocks headed for their largest advance in six weeks amid a global equity rally that sent U.S. equities surging. Japans Topix index jumped on a weaker yen ahead of a central bank policy decision.

The MSCI Asia Pacific Index climbed 1.1 percent to 136.17 as of 9:08 a.m. in Tokyo, trimming its weekly decline to 0.7 percent, while the Topix added 2 percent. BOJ Governor Haruhiko Kuroda is expected to keep policy on hold today in Tokyo. The Standard & Poors 500 Index posted its largest two-day gain in three years as the Federal Reserves pledge to be patient on boosting rates overshadowed concern over a slide in oil and Russias currency.

South Koreas Kospi index climbed 1.1 percent. Australias S&P/ASX 200 Index gained 1.6 percent, while New Zealands NZX 50 Index rose 0.4 percent.

Source : Bloomberg

Japan Stocks Rise a Second Day as Fed Sparks Global Equity Rally

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Japanese stocks jumped for a second day after U.S. equities posted the biggest two-day rally in three years amid rising confidence about the global economic outlook after the Federal Reserve pledged patience on interest rates.

The Topix added 1.6 percent to 1,398.85 as of 9:01 a.m. in Tokyo, paring its loss this week to less than 0.1 percent. All of its 33 industry groups rose. The Nikkei 225 Stock Average surged 1.7 percent to 17,498.95. The Bank of Japan reports on monetary policy today two months after unexpectedly boosting stimulus amid a recession in Asias second-largest economy.

The BOJ completes a two-day meeting today with 33 economists surveyed by Bloomberg News forecasting it will maintain the expansion of its monetary base at an annual pace of 80 trillion yen ($676 billion).

Prime Minister Shinzo Abes government will budget about 3.5 trillion yen for measures meant to rekindle economic growth, bringing more fiscal firepower to bear on Japans slump than previously expected, the Nikkei reported today. Cabinet will approve the stimulus package as early as Dec. 27. It was originally expected to be worth between 2 trillion yen and 3 trillion yen.

The Standard & Poors 500 Index jumped 2.4 percent in New York yesterday, capping a two-day gain of 4.5 percent, the most since November 2011. Futures on the S&P 500 were little changed today.

Source : Bloomberg

S&P 500 Caps Best Two-Day Gain Since 2011 Amid Global Rally

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U.S. stocks rose, sending the Standard & Poors 500 Index to its best two-day gain in three years, as global equities rallied on the Federal Reserves pledge to be patient on boosting rates.

The S&P 500 added 2.4 percent to 2,061.14 at 4 p.m. in New York, its largest one-day gain since January 2013. The index has climbed 4.5 percent over two days, the most since November 2011.

The MSCI All-Country World Index soared 2 percent and emerging-market stocks surged 1.8 percent. The Stoxx Europe 600 Index advanced 3 percent, the most in three years. Treasuries sank the most in 17 months. Oil slumped 3.2 percent after wiping out a 4 percent rally.

The Chicago Board Options Exchange Volatility Index lost 13 percent to 16.95. The VIX has plunged 28 percent over two days. The index climbed to a two-month high on Dec. 16.

U.S. stocks are rebounding from a seven-day decline that erased $1 trillion from equity prices and coincided with a 15 percent drop in West Texas Intermediate crude between Dec. 5 and Dec. 16. S&P 500 energy producers tumbled 8 percent over the stretch while chemical and mining companies lost 7.4 percent.

Source : Bloomberg