Oil Trades Near 6-Year Low as U.S. Supplies Seen Worsening Glut

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Oil traded near the lowest price since March 2009 before U.S. government data forecast to show that crude stockpiles in the world’s biggest consumer expanded further from a record high.

Futures were little changed in New York after falling 2.1 percent on Monday. Crude inventories probably gained by 3.3 million barrels to 452.2 million last week, according to a Bloomberg News survey before an Energy Information Administration report. Prices may drop to $40 a barrel if they fail to stabilize at current levels, said Stephen Schork, who’s worked in commodities trading for more than 25 years.

Rising U.S. supplies are exacerbating a global glut that drove prices almost 50 percent lower last year. Iran could increase exports by 1 million barrels a day if international sanctions were lifted, its oil minister said as talks resumed over its nuclear program. The nation is the fifth-largest producer in the Organization of Petroleum Exporting Countries.

West Texas Intermediate for April delivery was at $43.94 a barrel in electronic trading on the New York Mercantile Exchange, up 6 cents, at 11:19 a.m. Sydney time. The contract slid 96 cents to $43.88 on Monday. The volume of all futures traded was about 66 percent below the 100-day average. Prices have decreased 18 percent this year.

Source: Bloomberg

Gold Holds Near Three-Month Low on Rates as Fed Reserve Meets

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Gold held near a three-month low as investors weighed the outlook for higher U.S. interest rates before the Federal Reserve begins a two-day meeting.

Bullion for immediate delivery traded at $1,156.23 an ounce by 8:09 a.m. in Singapore from $1,154.81 on Monday, according to Bloomberg generic pricing. The precious metal slumped to $1,147.72 on March 11, the lowest level since Dec. 1.

The dollar surged to the highest in a decade last week and hedge funds exited gold at the fastest pace in more than four months as employers added more jobs than expected in February and the unemployment rate fell to the lowest in almost seven years. The Bloomberg Dollar Spot Index fell on Monday after climbing for a fourth week in the period ended March 13.

Gold for April delivery added 0.2 percent to $1,155.10 on the Comex. Assets in exchange-traded products backed by bullion fell 21.9 metric tons last week, the most since November.

Silver for immediate delivery was little changed at $15.648 an ounce.

Source: Bloomberg

Japan Stocks Rise Before BOJ, Follow U.S. Equities Higher on Fed

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Japanese stocks rose ahead of a central bank policy statement in Tokyo, following U.S. equities higher as investors weighed the timing of U.S. interest-rate increases after lower-than-forecast economic data.

The Topix index added 0.7 percent to 1,569.15 as of 9:02 a.m. in Tokyo, with all of its 33 industry groups rising. The Nikkei 225 gained 0.9 percent to 19,418.20, trading near a 15-year high.

The Bank of Japan reports on monetary policy today, with 34 economists surveyed by Bloomberg News forecasting it will keep policy on hold, boosting the monetary base at an annual pace of 80 trillion yen. The Fed starts its two-day meeting today.

E-mini futures on the Standard & Poor’s 500 Index slipped 0.1 percent after the underlying gauge jumped 1.4 percent Monday, the most in almost six weeks. The Stoxx Europe 600 Index advanced 0.9 percent to a seven-year high, as Germany’s DAX gauge topped 12,000 for the first time.

Source: Bloomberg

Asia Stocks Rise as U.S. Factory Data Damp Rate-Rise Speculation

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Asian stocks rose, after a rebound in U.S. equities, as weak economic data eased speculation the Federal Reserve will bring forward plans to raise interest rates.

The MSCI Asia Pacific Index gained 0.4 percent to 144.40 as of 9:02 a.m. in Tokyo. Factory production in the U.S. declined in February for a third straight month, data showed Monday, while confidence among U.S. homebuilders unexpectedly retreated this month to an eight-month low. The Standard & Poor’s 500 Index climbed 1.4 percent, the most in almost six weeks. The Fed starts a two-day meeting today, with investors watching whether the central bank removes a reference to being “patient” on rate increases from its statement.

Fed Chair Janet Yellen said last month the Fed’s pledge to be “patient” on starting to raise borrowing costs means an increase is unlikely for “at least the next couple” of meetings. Futures trading shows a 50 percent chance the Fed will boost its key borrowing costs to at least 0.5 percent by September, compared with 59 percent on March 6.

Source : Bloomberg

S&P 500 Rises Most in Five Weeks Amid Corporate Deals, Data

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The Standard & Poor’s 500 Index rose the most since Feb. 3, amid corporate deals and as investors weighed the timing of interest-rate increases after lower-than-forecast economic data.

Health-care companies in the S&P 500 Index advanced 2.2 percent as Salix Pharmaceuticals Ltd. accepted a sweetened, $11.1 billion takeover offer from Valeant Pharmaceuticals International Inc. Life Time Fitness Inc. rose 5.2 percent after agreeing to bought by private equity firms.

The S&P 500 Index climbed 1.3 percent to 2,081.00 at 4 p.m. in New York, and moved back above its average price for the past 50 days.

The yield on 10-year Treasuries earlier fell as much as five basis points to 2.06 percent, the lowest in two weeks.

The S&P 500 has lost 1.8 percent from a record on March 2, as a surging dollar stoked concern earnings growth will be lower than investors project. A gauge of the currency versus its major peers retreated, after posting four weeks of gains, before Fed officials start a two-day meeting Tuesday.

Source : Bloomberg