Oil Trades Near $60 as U.S. Supplies Seen Falling Third Week

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Oil traded near $60 a barrel before U.S. government data forecast to show crude stockpiles declined for a third week.

Futures were little changed in New York after slipping 0.4 percent on Monday. Crude inventories probably shrank by 2 million barrels through May 15, according to a Bloomberg survey before an Energy Information Administration report Wednesday. OPEC’s current output target of 30 million barrels a day is right, Iran’s Deputy Oil Minister Roknoddin Javadi said.

West Texas Intermediate for June delivery, which expires Tuesday, rose 8 cents to $59.51 a barrel in electronic trading on the New York Mercantile Exchange at 9:58 a.m. Sydney time. The contract fell 26 cents to $59.43 on Monday. The volume of all futures traded was about 75 percent below the 100-day average. The more-active July future climbed 3 cents to $60.27.

Brent for July settlement dropped 54 cents, or 0.8 percent, to $66.27 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of $6.03 to WTI for the same month.

Source: Bloomberg

Euro Holds Losses on Concern Greek Bailout Deal Remains Elusive

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The euro held losses against the majority of its peers on concern Greek banks will be pushed toward insolvency if the government fails to reach an agreement with creditors.

The 19-nation currency had its biggest drop in two months on Monday as the standoff between Greece and its lenders triggered an unprecedented liquidity squeeze, renewing doubts about the country’s place in the euro area. The euro rallied 4.6 percent in April, snapping nine months of declines, on signs Europe’s economy is improving in response to quantitative easing.

The euro was little changed at $1.1325 at 9:15 a.m. in Tokyo compared with Monday, when it plunged 1.2 percent, the biggest decline since March 19. The currency fetched 135.82 yen, after sliding 0.6 percent to 135.75 on Monday.

The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major trading partners, slipped 0.1 percent to 1,158.93. It rose 0.9 percent on Monday from a four-month low on speculation that the U.S. economy will rebound from a sluggish first quarter.

Source: Bloomberg

Most Asia Stocks Rise After U.S. Shares Hit Records, Yen Weakens

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Most Asian stocks rose after U.S. equity gauges climbed to fresh records and the yen weakened, boosting Japanese shares.

About three stocks rose for every two that fell on the MSCI Asia Pacific Index, which traded little changed at 153.39 as of 9:03 a.m. in Tokyo. Japan’s Topix index added 0.2 percent after the yen fell 0.6 percent against the dollar on Monday. The Standard & Poor’s 500 Index rose 0.3 percent and the Dow Jones Industrial Average climbed 0.1 percent, both closing at all-time highs. Investors are awaiting this week’s U.S. housing data for clues as to whether the recovery in the world’s largest economy can withstand higher interest rates.

Australia’s S&P/ASX 200 Index rose 0.1 percent and South Korea’s Kospi index was little changed. New Zealand’s NZX 50 Index slipped less than 0.1 percent.

E-mini futures on the S&P 500 were little changed today.

Source: Bloomberg

Japan’s Topix Heads for Seven-Year High as Yen Boosts Exporters

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Japanese stocks rose, with the Topix index trading near its highest level since 2007, as a weaker yen boosted exporters.

The Topix climbed 0.2 percent to 1,630.36 as of 9:02 a.m. in Tokyo, gaining for a third day and headed for the highest close since November 2007. The Nikkei 225 Stock Average advanced 0.5 percent to 19,981. The yen traded at 119.93 per dollar after weakening the most in more than two weeks on speculation the U.S. economy will rebound from a sluggish first quarter.

The dollar rallied before the release of U.S. housing and manufacturing data this week, as well as minutes from the Federal Reserve’s April meeting, which may provide clues on when the central bank may increase interest rates.

E-mini futures on the Standard & Poor’s 500 Index were little changed after the underlying U.S. measure gained 0.3 percent to close at a record on Monday in New York.

Source: Bloomberg

Rally in Apple, Bank Shares Sends U.S. Stocks to All-Time Highs

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U.S. stocks rose to all-time highs as Apple Inc. climbed on comments from Carl Icahn and banks rallied amid higher bond yields.

The Standard & Poor’s 500 Index climbed 0.3 percent to 2,129.01 at 4 p.m. in New York, closing at a record for the third consecutive session. The Dow Jones Industrial Average added 0.1 percent to also close at an all-time high, its first since March 2.

The back-to-back weekly advance halted a string of five up-and-down periods for the S&P 500, as multinational companies rallied amid a weaker dollar and mixed economic data boosted speculation the Federal Reserve won’t rush to raise interest rates. With a selloff in global bond markets subsiding last week, a measure of U.S. stock volatility posted its longest streak of losses in three weeks and closed near this year’s low.

Source : Bloomberg