Oil Advances as U.S. Drill Rig Count Drops to Lowest Since 2010

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Oil advanced as the number of active drill rigs in the U.S. dropped to the lowest level since 2010.

Futures climbed as much as 1 percent in New York after capping the biggest weekly gain since 2011 on Friday. Rigs targeting oil in the U.S. fell by 26 to 734 last week, according to Baker Hughes Inc. International inspectors won’t be given access to Iran’s military bases in a deal with world powers to curb the nation’s nuclear program, a top Iranian commander said.

Oil has rallied about 30 percent from a six-year low in March on signs the idling of U.S. rigs is spurring a production slowdown that may ease the global surplus. The rally may still falter after American crude stockpiles swelled to the highest level in 85 years.

West Texas Intermediate for May delivery rose as much as 55 cents to $56.29 a barrel in electronic trading on the New York Mercantile Exchange and was at $56.26 at 9:47 a.m. Sydney time. The contract fell 97 cents to $55.74 on Friday. The volume of all futures traded was about 75 percent below the 100-day average. Prices climbed 7.9 percent last week.

Brent for June settlement gained 68 cents, or 1.1 percent, to $64.13 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $6.22 to WTI for the same month.

Source: Bloomberg

Aussie Rises With Copper, U.S. Futures on China Stimulus Move

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The Australian dollar climbed with futures on copper and U.S. stocks after China stepped up stimulus, cutting the reserve-requirement ratio for banks amid a slowing economy. Chinese index futures slumped at the end of last week after the country tightened rules around margin trading.

The Aussie added 0.4 percent to 78.10 U.S. cents by 9:53 a.m. in Sydney, with China the nation’s biggest trading partner. Copper futures jumped 1.7 percent, while Standard & Poor’s 500 Index futures gained 0.3 percent. FTSE China A50 Index futures were down 6 percent in Singapore by the end of Friday trading, and contracts on Hong Kong-listed shares also slipped. U.S. oil advanced for the seventh time in eight days Monday.

China’s leaders announced on Sunday the biggest cut to the amount lenders must set aside as reserves since the global financial crisis, after data last week showed growth in Asia’s largest economy had slowed to the least in six years. The move came after regulators moved to stem a surge in Chinese equities, banning a source of financing for margin trades and making it easier for short sellers to bet on declines. U.S. inflation data also fueled global stock losses on Friday.

Source: Bloomberg

China cuts bank reserves again to counter slowdown

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China's central bank on Sunday cut the amount of cash that banks must hold as reserves, the second industry-wide cut in two months, adding more liquidity to the world's second-biggest economy to help spur bank lending and combat slowing growth.

The People's Bank of China (PBOC) lowered the reserve requirement ratio for all banks by 100 basis points to 18.5 percent.

The reduction is effective from April 20, the central bank said in a statement on its website www.pbc.gov.cn.

The latest cut in the reserve requirement shows how the central bank is stepping up efforts to ward off a sharp slowdown in the economy.

Weighed down by a property downturn, factory overcapacity and local debt, growth is expected to slow to a quarter-century low of around 7 percent this year from 7.4 percent in 2014, even with expected additional stimulus measures.

The PBOC last cut the reserve requirement ratio for all commercial banks by 50 basis points on February 4, the first industry-wide cut since May 2012.

The central bank has also cut interest rates twice since November in a bid to lower borrowing costs and spur demand.

Source: CNBC

Asia Stocks Drop While China Stimulus Move Boosts Metals, Aussie

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Asian stocks fell, led by Japan, following a selloff in U.S. and European shares Friday. Metals climbed with Australia’s dollar after China stepped up stimulus, cutting the reserve-requirement ratio for banks amid a slowdown.

The MSCI Asia Pacific Index slipped 0.3 percent by 9:20 a.m. in Tokyo, as Japan’s Topix gauge dropped to a two-week low. Standard & Poor’s 500 Index futures gained 0.2 percent after a 1 percent slump in MSCI’s global stock measure Friday. The Aussie added 0.4 percent with New Zealand’s dollar, while copper and nickel climbed more than 1 percent, while gold gained 0.2 percent. Oil rose for the seventh time in eight days.

China announced on Sunday the biggest cut to the amount lenders must set aside as reserves since the global financial crisis, after data last week showed growth in Asia’s largest economy had slowed to the least in six years. The move came after regulators moved to stem a surge in Chinese equities, banning a source of financing for margin trades and making it easier for short sellers to bet on declines. Solid U.S. inflation data also fueled global stock losses on Friday.

Source: Bloomberg

Japanese Shares Follow Global Slump as Developers Lead Declines

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Japanese stocks fell, led by developers and banks, following a global slide that began after markets closed in Tokyo on Friday.

The Topix index declined 1.2 percent to 1,570.19 as of 9:05 a.m. in Tokyo, with all but one of its 33 industry groups falling. The Nikkei 225 Stock Average lost 0.8 percent to 19,500.45. The MSCI All Country-World Index of global developed and emerging-market shares fell 1 percent on Friday, the most in a month, as disappointing earnings, signs of higher U.S. inflation and concerns from China to Greece curbed demand for risk assets. China stepped up monetary stimulus and tightened rules around buying shares with borrowed money.

China’s leaders on Sunday lowered the amount banks must set aside as reserves by the largest amount since the the global financial crisis, following data last week that showed the economy grew at the slowest pace in six years. The move came after regulators on Friday moved to stem a surge in Chinese equities, banning a source of financing for margin trades and making it easier for short sellers to bet on declines.

E-mini futures on the Standard & Poor’s 500 Index gained 0.2 percent after the underlying gauge slumped 1.1 percent on Friday in New York, sending U.S. shares to the first weekly decline this month.

Source: Bloomberg