Oil Drops as Gain in Saudi Arabian Output Boosts OPEC Production

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Oil fell after capping its first monthly gain since June as increased production from Saudi Arabia lifted OPEC’s output beyond its collective quota for a ninth month.

Futures decreased as much as 1.1 percent in New York. The Organization of Petroleum Exporting Countries pumped 30.6 million barrels a day in February, above the group’s output target of 30 million a day, according to a Bloomberg survey. U.S. drillers cut the number of rigs in service for a 12th week to the fewest since June 2011, Baker Hughes Inc. data showed.

Saudi Arabia led OPEC’s decision in November to maintain the group’s output, exacerbating a global glut that drove oil almost 50 percent lower in 2014. West Texas Intermediate’s discount to European prices settled at the widest in more than a year on Feb. 27 as U.S. crude stockpiles expanded to the highest level in weekly data that started August 1982.

WTI for April delivery slid as much as 54 cents to $49.22 a barrel in electronic trading on the New York Mercantile Exchange and was at $49.35 at 11:18 a.m. Sydney time. The contract rose $1.59 to $49.76 on Feb. 27, capping a 3.2 percent gain for the month. The volume of all futures traded was about 63 percent below the 100-day average.

Brent for April settlement was down 41 cents, or 0.7 percent, to $62.17 a barrel on the London-based ICE Futures Europe exchange. It advanced $2.53 to $62.58 on Friday. Prices rose 18 percent in February, the most since May 2009. The European benchmark crude was at a premium of $12.84 to WTI after closing at $12.82 on Friday, the widest since January 2014.

Source : Bloomberg

Yen Holds 2-Day Drop After China Cuts Rate, Aussie Dollar Falls

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The yen held a two-day decline after China cut interest rates, spurring speculation stocks in Asia will climb and damp demand for haven assets.

A gauge of the dollar was 0.1 percent from the highest close since at least 2004 on prospects the Federal Reserve will raise interest rates this year, boosting the currency’s allure. Australia’s dollar dropped before the Reserve Bank sets monetary policy at a meeting on Tuesday.

Japan’s currency fell 0.1 percent to 119.77 yen per dollar as of 8:35 a.m. in Tokyo, extending a slide that pushed it down 0.6 percent over the past two days.

The Bloomberg Dollar Spot Index, a gauge of the currency versus 10 major peers, gained 0.1 percent to 1,174.06 Monday, after touching 1,174.87 on Feb. 11, which was the highest level in data going back to 2004.

The Aussie fell 0.2 percent to 77.90 U.S. cents. The euro declined 0.3 percent to $1.1168.

The People’s Bank of China lowered the one-year deposit rate to 2.5 percent and the one-year lending rate to 5.35 percent, effective Sunday, the Beijing-based central bank said on its website. The decision preceded data showing a Chinese gauge of manufacturing contracted in February.

Traders are betting there’s a 60 percent chance the Reserve Bank of Australia will lower the 2.25 percent cash rate to a record 2 percent on Tuesday, swaps data compiled by Bloomberg show. Eighteen of 29 economists in a Bloomberg News survey predict a cut.

New Zealand’s dollar fell 0.3 percent at 75.43 U.S. cents.

Source: Bloomberg

China’s Stock-Index Futures Advance After PBOC Interest-Rate Cut

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Chinese stock-index futures rose in Singapore after the central bank reduced its benchmark interest rate for a second time in three months to shore up growth in the world’s second-largest economy.

FTSE China A50 Index futures expiring in March surged 2.2 percent at 9:06 a.m. local time. Property and financial companies may be active after the People’s Bank of China lowered the one-year deposit rate by a quarter percentage point to 2.5 percent and cut the one-year lending rate to 5.35 percent, effective Sunday.

The Shanghai Composite Index advanced 0.4 percent to 3,310.30 on Feb. 27, taking gains last month to 3.1 percent. The PBOC’s decision came a day before a Chinese factory gauge signaled contraction in February. Most economists predict Premier Li Keqiang will announce a 2015 growth target of around 7 percent, down from 7.5 percent last year, when the National People’s Congress convenes its annual meeting this week.

Source: Bloomberg

Asian Stocks Rise With Copper After China Rate Cut; Yuan Slips

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Asian stocks climbed with U.S. index futures and copper, while the yuan slipped to a two-year low as traders weighed China’s interest-rate cut amid signs of weakness in manufacturing. Oil fell following its first monthly gain since June.

The MSCI Asia Pacific Index rose 0.1 percent by 9:16 a.m. in Tokyo, as equity gauges from Japan to Australia advanced at least 0.2 percent. Standard & Poor’s 500 Index futures added 0.2 percent after three days of losses in the benchmark gauge, while copper futures jumped 0.5 percent. China’s currency touched its weakest level since October 2012 in offshore trading, as the Australian and New Zealand dollars retreated. Oil in New York and London dropped at least 0.6 percent with OPEC output exceeding its quota for a ninth month in February.

Source: Bloomberg

Japan Stocks Rise as Yen Weakens, Investors Weigh China Rate Cut

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Japanese stocks rose, led by shippers, as the yen fell for a third day and investors weighed an interest-rate cut by China amid signs the world’s second-biggest economy is weakening.

The Topix index added 0.3 percent to 1,528.13 as of 9:02 a.m. in Tokyo, with two stocks advancing for each that fell. The gauge rose 1.6 percent last week to cap a 7.7 percent jump in February, the most since September 2013. The Nikkei 225 Stock Average gained 0.3 percent to 18,862.71. The yen fell 0.2 percent to 119.83 per dollar.

A Chinese purchasing managers’ index released on Sunday signaled contraction in factory output again in February, a day after the central bank stepped up support for the economy with its second cut to benchmark interest rates in three months.

The interest-rate reduction announced late Saturday comes days before an annual gathering of China’s lawmakers, who will approve the budget and announce a 2015 growth goal that most economists expect will be lowered to about 7 percent. The move to join global counterparts with more easing reflects deepening concern over an economy squeezed by a property slump, tighter controls over local government debt and capital outflows.

Source : Bloomberg