Oil Trades Near Six-Year Low as Global Oversupply Seen Prolonged

Oil traded near the lowest price in six years amid speculation the global glut that drove prices into a bear market will be prolonged.

Futures were little changed in New York after slipping 1.5 percent Monday. While U.S. crude stockpiles are projected to decline for a fourth week through Aug. 14, inventories will remain more than 90 million barrels above the five-year average for this time of the year. OPEC can do little to halt the price slide on its own and needs producers from outside the group to help in reducing supplies, Algeria’s Energy Minister said.

Oil has slumped more than 30 percent from the year’s closing peak in June amid signs that the global glut will persist. The recovery of Iranian supply after the removal of international sanctions may boost output from the Organization of Petroleum Exporting Countries to a record 33 million barrels a day, according to Iran’s OPEC representative.

West Texas Intermediate for September delivery was at $41.86 a barrel on the New York Mercantile Exchange, down 1 cent, at 11:41 a.m. Sydney time. The contract fell 63 cents to $41.87 on Monday, the lowest close since March 2009. The volume of all futures traded was about 34 percent below the 100-day average. Prices have decreased 21 percent this year.

Brent for October settlement was 13 cents lower at $48.61 a barrel on the London-based ICE Futures Europe exchange. The contract slid 45 cents to $48.74 Monday. The European benchmark crude traded at a premium of $6.22 to WTI for the same month.

Source: Bloomberg

Gold Holds Advance as Investors Parse Data for Outlook on Rates

Gold held the first gain in three days after a manufacturing gauge in the New York area slumped, clouding the outlook for the timing of higher U.S. interest rates.

Bullion for immediate delivery traded little changed at $1,117.94 an ounce at 8:54 a.m. in Singapore from $1,117.70 on Monday, when prices climbed 0.2 percent, according to Bloomberg generic pricing. Prices rose last week for the first time since June after China devalued the yuan, spurring haven demand.

Gold investors are scrutinizing U.S. data for clues as to when the Federal Reserve will start to tighten policy after bullion prices sank to a five-year low last month. The Fed Bank of New York’s Empire State index unexpectedly dropped in August to the lowest since April 2009, weakening the case for higher borrowing costs. Minutes of the Fed policy makers’ meeting in July are due for release on Wednesday.

Gold futures for December delivery were 0.1 percent lower at $1,117 an ounce on the Comex in New York after a 0.5 percent climb on Monday.

Silver for immediate delivery was little changed at $15.337 an ounce. Spot platinum traded at $999.35 an ounce from $998.92 on Monday, while palladium lost 0.2 percent to $613.90 an ounce.

Source: Bloomberg

Most Chinese Stocks Decline After Index Rises to Three-Week High

Most Chinese stocks fell after the benchmark index advanced to the highest level in more than three weeks.

The Shanghai Composite Index slid 0.4 percent to 3,978.88 at 9:43 a.m. local time. About two stocks dropped for every one that rose. The gauge closed at the highest since July 24 on Monday. The CSI 300 Index added 0.3 percent, led by health-care companies. Hong Kong’s Hang Seng China Enterprises Index advanced 0.5 percent.

Source : Bloomberg

Most Asian Stocks Rise After U.S. Shares Gain on Housing Data

Most Asian stocks advanced, with the regional benchmark index holding near a seven-month low, following gains in U.S. equities as strong homebuilder data added to signs the world’s biggest economy is improving.

The MSCI Asia-Pacific Index fell 0.1 percent to 137.73 as of 9:05 a.m. in Tokyo with about three stocks gaining for every two that fell. The Standard & Poor’s 500 climbed climbed 0.5 percent on Monday, reversing earlier losses, after confidence among U.S. homebuilders jumped to the highest level in almost a decade.

Japan Topix index was little changed, swinging between gains and losses. South Korea’s Kospi index rose 0.5 percent. Australia’s S&P/ASX 200 Index slid 0.2 percent. New Zealand’s NZX 50 Index rose 0.1 percent. Markets in China and Hong Kong have yet to open.

The Hang Seng China Enterprises Index of mainland stocks traded in Hong Kong slipped 0.9 percent to an eight-month low on Monday as foreigners pulled funds amid concern the outlook for the yuan and economic growth have weakened.

Source : Bloomberg

Most Japanese Stocks Rise After U.S. Gains as Shippers Advance

Most Japanese stocks rose, tracking gains in U.S. equities, as shipping lines and insurers advanced.

The Topix traded little changed at 1,672.76 at 9:08 a.m. in Tokyo, with about nine shares climbing for every seven that fell. The Nikkei 225 Stock Average increased less than 0.1 percent to 20,626.57. The Standard & Poor’s 500 Index added 0.5 percent in New York on Monday, reversing losses as data showed confidence among homebuilders climbed to the highest level in almost a decade.

Investors are refocusing attention on the strength of the U.S. economy and its implications for Federal Reserve interest-rate policy. The central bank releases minutes from its July meeting on Wednesday. Traders see a 46 percent chance of a September rate increase, according to futures trading data compiled by Bloomberg.

China may cut its reserve-requirement ratio, the China Securities Journal said in a front-page article, citing unidentified analysts.

Source: Bloomberg