Oil Extends Decline as Iran Nuclear Deal Seen Exacerbating Glut

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Oil extended its decline after its biggest weekly drop since March as investors weighed the prospects of Iran increasing crude exports in an oversupplied market.

Futures dropped as much as 1.8 percent in New York after capping a 7.4 percent loss through July 10. Iran and world powers may announce a nuclear deal as soon as Monday after a political agreement was reached to lift a United Nations arms embargo. Prices also slid as investors eschewed risky assets amid concern Greece may be cut from the euro area.

Oil rebound from a six-year low has faltered, capping a second weekly drop on Friday, as a rout in Chinese equities and the turmoil in Greece stoke speculation demand will weaken and a global glut will persist. Prices may fall further as the world remains “massively oversupplied,” before markets tighten in 2016 when output growth outside OPEC grinds to a halt, according to the International Energy Agency.

West Texas Intermediate for August delivery lost as much as 97 cents to $51.77 a barrel in electronic trading on the New York Mercantile Exchange and was at $52.10 a barrel at 10:36 a.m. Sydney time. The contract fell 4 cents to $52.74 on Friday. Prices have decreased 2.2 percent this year.

Brent for August settlement slid as much as 92 cents, or 1.6 percent, to $57.81 a barrel on the London-based ICE Futures Europe exchange. Prices fell 2.6 percent last week. The European benchmark crude was at a premium of $5.91 to WTI.

Source : Bloomberg

Hong Kong Stocks Open 0.77 % Lower

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Shares in Hong Kong slipped 0.77 percent in the first few minutes Monday after surging almost six percent at the end of last week as investors await the resumption of trade in Shanghai, which is witnessing severe volatility.

The Hang Seng Index eased 191.70 points to 24,709.58.

Source : AFP

Shanghai Composite Set to Open Higher as Margin Bets Increase

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The Shanghai Composite Index is poised to open higher before trade data as traders increased margin bets for the first time since last month and more companies prepared to resume trading.

The benchmark index climbed 1.1 percent to 3,918.99 at 9:27 a.m. Futures on the CSI 300 Index expiring in July, the most active contract, gained 0.1 percent.

The Shanghai index climbed 4.5 percent to 3,877.80 on Friday, capping a 5.2 percent gain last week. The CSI 300 Index declined 5.4 percent. With more than 1,300 companies halted on mainland exchanges on Friday, trading was limited to 53 percent of the market. More companies will resume trading in Shanghai and Shenzhen on Monday, the Shanghai Securities News reported, citing data compiled by its reporter.

Hong Kong Hang Seng China Enterprises Index advanced 3.6 percent. The Hang Seng Index gained 2.1 percent. The Bloomberg China-US Equity Index, the measure of the most-traded U.S.-listed Chinese companies, added 0.3 percent in New York.

Margin traders increased holdings of shares purchased with borrowed money for the first time since the stock rout began in mid-June on Friday, with the outstanding balance of margin debt on the Shanghai Stock Exchange rising by 0.5 percent from a day earlier to 932.3 billion yuan ($150 billion).

Imports probably fell 15.5 percent in June from a year earlier, while exports may have risen 1 percent, according to a survey of 36 economists. The trade data are set to be released at 10 a.m. local time.

Source : Bloomberg

Asian Stocks Advance as Investors Weigh Progress in Greece Talks

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Asian stocks rose, with the regional index on course for a third day of gains, as investors weighed negotiations between European leaders and Greece.

The MSCI Asia Pacific Index added 0.4 percent to 141.63 as of 9:10 a.m. in Tokyo after dropping 3.7 percent last week. E-mini futures on the Standard & Poor’s 500 Index retreated 0.5 percent, while Japan Topix index added 1.1 percent as the yen pared earlier gains.

Euro-area leaders presented Greek Prime Minister Alexis Tsipras with a laundry list of unfinished business from previous bailouts he’d pilloried in opposition and during six turbulent months in office.

China reports trade data after two days of gains in the Shanghai Composite Index, where about half of companies were halted following a recent selloff. Even after an 11 percent two-day rebound, the benchmark equity gauge is down 25 percent since June 12.

Australia S&P/ASX 200 Index declined 0.2 percent, as did New Zealand NZX 50 Index. South Korea Kospi index climbed 0.2 percent.

Source : Bloomberg