Oil Holds Gains Near $60 as U.S. Crude Stockpiles Seen Shrinking

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Oil held gains near $60 a barrel on signs the U.S. supply glut is easing.

Futures were little changed in New York after rising 0.8 percent on Tuesday. Crude inventories shrank by 2.9 million barrels through June 12, the industry-funded American Petroleum Institute was said to have reported. Energy Information Administration data Wednesday is forecast to show supplies slid for a seventh week, according to a Bloomberg survey.

Oil has rebounded from a six-year low in March as drilling slowed in the U.S., bolstering speculation that the surplus will shrink. The Organization of Petroleum Exporting Countries maintained its production quota at 30 million barrels a day at a June 5 meeting as it seeks to defend market share.

West Texas Intermediate for July delivery was at $60.03 a barrel in electronic trading on the New York Mercantile Exchange, up 6 cents at 9:06 a.m. Sydney time. The contract gained 45 cents to $59.97 on Tuesday. The volume of all futures traded was about 84 percent below the 100-day average. Prices have increased almost 13 percent this year.

Brent for August settlement dropped 25 cents, or 0.4 percent, to $63.70 a barrel on the London-based ICE Futures Europe exchange on Tuesday. The European benchmark crude ended the session at a premium of $3.25 to WTI for the same month.

Source : Bloomberg

Gold dented by firm dollar ahead of Fed meeting, Greece in focus

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Gold slipped on Tuesday as the dollar firmed ahead of the U.S. Federal Reserve policy meeting, while a looming Greek crisis failed to trigger sustained demand for safe-haven assets.

Spot gold fell 0.7 percent to $1,178.06 an ounce by 1419 GMT, while U.S. gold futures for August delivery were down $8.20 an ounce at $1,177.60.

Bullion has not made much headway in recent months because of uncertainty over the timing of a rate rise, which would reduce demand for the non-interest-paying asset.

U.S. data on Tuesday showed a fall in housing starts in May, but a surge in permits for future construction to the highest level in nearly eight years suggests the pullback will be temporary.

European equities fell on the concerns about Greece, with Athens and its creditors hardening their stances after the latest breakdown in talks.

There were continued outflows for exchange-traded bullion funds, with assets at top fund SPDR Gold Trust falling 0.3 percent to 701.9 tonnes on Monday, the lowest since 2008.

In other metals, silver was down 1.1 percent at $15.90 an ounce, while palladium lost 0.1 percent to $734.25.

Platinum fell 0.9 percent to $1,076.75, within sight of a six-year low of $1,072.50 hit on Monday on a combination of weaker equities and lower gold prices, analysts said. ($1 = 0.8891 euros)

Source: Reuters

Asian Stocks Rise First Time in Three Days Before Fed Decision

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Asian stocks rose for the first time in three days, following U.S. shares higher, as investors awaited a Federal Reserve decision on U.S. monetary policy.

The MSCI Asia Pacific Index gained 0.2 percent to 146.63 as of 9:02 a.m. in Tokyo. The measure slipped 1.2 percent in the previous two days as European policy makers urged Greece to make the concessions needed to unlock bailout aid ahead of Thursday’s meeting of euro-area finance ministers.

The Fed concludes its two-day policy meeting Wednesday, amid speculation mixed U.S. economic data and the deadlock over Greece may complicate the central bank’s drive to increase interest rates. Greece’s prime minister accused the International Monetary Fund of “criminal” responsibility for the indebted nation’s situation.

Japan’s Topix index added 0.3 percent. South Korea’s Kospi index rose 0.2 percent. Australia’s S&P/ASX 200 Index gained 0.3 percent and New Zealand’s NZX 50 Index slid 0.1 percent.

Source : Bloomberg

Japanese Stocks Follow U.S. Shares Higher on Fed Rate Outlook

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Japanese stocks rose as investors speculated the Federal Reserve won’t rush to raise U.S. interest rates amid mounting uncertainty over Greece’s future in the euro.

The Topix added 0.3 percent to 1,644.98 as of 9:01 a.m. in Tokyo. The Nikkei 225 Stock Average gained 0.3 percent to 20,322.13.

The Federal Reserve concludes a two-day meeting Wednesday, with officials and Chair Janet Yellen expected to leave interest rates unchanged after the economy contracted in the first quarter amid harsh winter weather. Policy makers anticipate growth will rebound enough to potentially allow for a rate increase this year. The Bank of Japan also reviews borrowing costs this week.

Source : Bloomberg

U.S. Stocks Rise With Europe Shares, Treasuries Amid Greece, Fed

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U.S. stocks rose for the first time in three days and Treasuries advanced on speculation the Federal Reserve won’t rush to raise rates amid uncertainty over Greece’s future in the euro. European equities rebounded from a four-month low.

The Standard & Poor’s 500 Index climbed 0.6 percent at 4 p.m. in New York, rising above its average price for the past 100 days. The Stoxx Europe 600 Index gained 0.6 percent after reversing a 1.1 percent loss. The euro weakened 0.5 percent to $1.1232. The yield on 10-year Treasury notes fell four basis points to 2.31 percent, while German bund rates slipped to 0.80 percent. Gold settled 0.4 percent lower.

The Federal Reserve started a two-day policy meeting, with investors speculating interest rates will remain unchanged and fed fund futures assigning a reduced probability for an increase in September. While Greece ratcheted up rhetoric against its creditors, German Chancellor Angela Merkel struck a more conciliatory tone, saying she was counting on a June 18 meeting of euro-area finance ministers to end the standoff.

Source: Bloomberg

Gold Slips as U.S. Interest Rates, Greece Debt Impasse Assessed

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Gold prices slipped before two key meetings: a policy update from the U.S. Federal Reserve and a gathering of euro-area finance ministers to discuss Greece’s intensifying debt crisis.

The Fed meets in Washington on Tuesday and Wednesday to plot monetary strategy and update economic forecasts. Investors will scrutinize the central bank’s comments for any indications as to when it will raise borrowing costs for the first time since 2006.

While European finance ministers will meet in Luxembourg on June 18, Greece has no plans to present new proposals to unlock aid, Finance Minister Yanis Varoufakis told Bild newspaper. The country needs to seal an accord or get an extension before the euro area’s bailout expires on June 30, or risk missing payments on its debt of about 313 billion euros ($352 billion).

Bullion for immediate delivery slipped 0.3 percent to $1,182.87 an ounce at 11 a.m. in London, according to Bloomberg generic pricing. The precious metal swung between losses and gains earlier on Tuesday. Bullion for August delivery fell 0.3 percent to $1,182.20 on the Comex in New York, where futures trading volume was 28 percent below the 100-day average for the time of day.

Assets in gold-backed exchange-traded products retreated 2.8 metric tons to 1,584.9 tons as of Monday, declining for a second session to the lowest since March 2009.

Source : Bloomberg

Euro Declines For First Time in Three Days Versus U.S. Dollar

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The euro declined for the first time in three days against the dollar.

The 19-nation shared currency slid 0.1 percent to $1.1268 as of 9:44 a.m. London time, after adding 0.2 percent in the previous two days. It dropped less than 0.1 percent to 139.19 yen.

Source : Bloomberg

U.S. Stock-Index Futures Fall Amid Impasse in Greek Negotiations

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U.S. stock-index futures declined, signaling equities will slide for a third day, as Greece and its creditors failed to break an impasse in debt negotiations.

Standard & Poor’s 500 Index E-mini contracts expiring in September slid 0.4 percent to 2,067.5 at 9:56 a.m. in London. Dow Jones Industrial Average futures retreated 68 points, or 0.4 percent, to 17,644.

The S&P 500 on Monday slipped below its average price during the past 100 days after weekend talks between Greece and its creditors broke up acrimoniously. Disappointing factory data increased investor uncertainty as to whether the economic recovery is strong enough to withstand a rate increase. A report on housing today may offer further clues, with economists forecasting weaker data for May.

The Federal Reserve begins a two-day meeting today, at which officials are expected to leave interest rates unchanged. The probability for a September increase has risen to 53 percent since the central bank’s last session, data compiled by Bloomberg show.

Investors are looking for any signs of progress in Greece’s debt talks after the Mediterranean nation signaled it won’t make further concessions to unlock bailout funds needed to avoid default. Finance Minister Yanis Varoufakis told Germany’s Bild newspaper any new proposals would need to be worked out at a lower level before they could be presented to the finance ministers’ meeting later this week.

Source : Bloomberg

Hong Kong Stocks end 1.10 % Lower

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Hong Kong shares fell 1.10 percent Tuesday, tracking losses in New York and Europe on concerns about Greece's future in the eurozone, while mainland stocks were hit by liquidity worries.

The benchmark Hang Seng Index lost 295.11 points to close at 26,566.70 on turnover of HK$123.15 billion (US$15.89 billion).

In Shanghai the benchmark composite index tumbled 3.47 percent, or 175.56 points, to 4,887.43 on turnover of 895.4 billion yuan ($146.4 billion).

The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 3.59 percent or 110.41 points to 2,962.66 on turnover of 805.4 billion yuan.

Source : AFP

China Stocks Cap Biggest Two-Day Loss This Month on IPOs

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China’s stocks fell, capping the benchmark index’s biggest two-day loss this month, on concern valuations are outstripping earnings growth and a flood of share sales will lure funds from existing equities.

Trainmaker CRRC Corp. and Shenzhen InfoTech Technologies Co. plunged by the 10 percent daily limit, while phone-equipment maker ZTE Corp. slid 5.4 percent. BYD Co. tumbled 6.6 percent in Hong Kong.

The Shanghai Composite Index fell 3.5 percent to 4,887.43 at the close, extending losses to 5.4 percent in the past two days.

Source : Bloomberg