Oil Drops a Second Day as Venezuela Seeks OPEC Summit Amid Glut

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Oil declined for a second day as Venezuela proposed an OPEC summit to stabilize prices amid a global glut.

Futures slid as much as 1.9 percent in New York. Producers from outside of the Organization of Petroleum Exporting Countries including Russia will be invited to the meeting, Venezuelan President Nicolas Maduro told state-owned broadcaster Telesur. Cutting output for a short-term price gain isn’t the cure for the “sickness” affecting global markets, Russian Energy Minister Alexander Novak said Friday.

Oil has slumped more than 25 percent from this year’s closing peak in June on signs the global glut that drove prices to a six-year low will persist. Leading members of OPEC are sustaining output and U.S. crude stockpiles remain almost 100 million barrels above the five-year seasonal average.

West Texas Intermediate for October delivery dropped as much as 87 cents to $45.18 a barrel on the New York Mercantile Exchange and was at $45.22 at 10:44 a.m. Sydney time. The contract slid 70 cents to $46.05 on Friday. The volume of all futures traded was about 26 percent below the 100-day average. Prices have decreased 15 percent this year.

All electronic transactions Monday will be booked with Tuesday’s for settlement purposes because of the Labor Day holiday.

Brent for October settlement lost as much as 83 cents, or 1.7 percent, to $48.78 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $3.64 to WTI.

Source: Bloomberg

China's Central Banker Acknowledges Recent Stock Bubble

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BEIJING -- The Chinese stock market bubble grew continuously through mid-June before undergoing corrections three times, the country's central bank governor explained at a recent Group of 20 meeting in Turkey, signaling that its economy is already returning to normal.

Finance ministers and central bank governors from the G-20 nations gathered in Ankara for a two-day meeting that wrapped up Saturday. The People's Bank of China released the comments of its governor, Zhou Xiaochuan, at the conclusion of the meeting.

China's economic policies and responses to the market turmoil have faced international criticism. While acknowledging the bubble in Chinese equities, Zhou said that there has been no notable impact on the real economy, crediting appropriate government action. He emphasized that a string of policies, including the central bank providing liquidity, has helped to curtail systemic risk.

The Shanghai stock market soared 150% in the year leading up to June 12. Zhou pointed out that the balance of leveraged positions accelerated during that time, resulting in heightened undetected risk. Of the three ensuing corrections, he noted that the third in late August had a global impact.

Zhou also discussed last month's yuan devaluation, saying that it was an important step in moving the currency toward a market-based rate. As the dollar strengthened amid expectations of a U.S. interest rate hike, Zhou said that the yuan's effective rate had become too strong. Yet with no change in China's economic fundamentals, he stressed that there is no foundation for continuing to devalue the yuan over the long term.

Source : Asia Nikkei

Indeks Saham China Meningkat Pasca Hari Liburnya

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Saham China meningkat ditengah pasar China daratan diperdagangkan untuk pertama kalinya sejak Rabu lalu.

Sekitar 15 saham naik untuk setiap satu saham yang jatuh pada Indeks Shanghai Composite, yang naik 1% pada 09:36 pagi waktu setempat. Indeks Hang Seng China Enterprises naik 1,8% dari level terendah dua tahun. Bursa China daratan telah ditutup untuk liburan.

China berusaha untuk menenangkan kekhawatiran ekonomi pada pertemuan G-20 di Turki pada akhir pekan, dengan para pejabat memprediksi stabilisasi di pasar mata uang serta saham dalam beberapa pekan mendatang. Gubernur PBOC Zhou Xiaochuan mengatakan dalam sebuah pernyataan bahwa gejolak dalam ekuitas China akan segera berakhir, dan bahwa intervensi negara dicegah risiko sistemik dan berhenti.

Cina akan merilis data terbaru mengenai cadangan mata uang asing secepatnya pada hari Senin, sehingga memberikan investor dengan beberapa gagasan mengenai berapa banyak telah dihabiskan oleh regulator untuk menopang pasar lokal dan yuan.(yds)

Sumber: Bloomberg

China Stock-Index Futures Rise as Trading Resumes After Break

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China’s stock-index futures advanced as mainland markets traded for the first time since Wednesday.

Contracts on the CSI 300 Index gained 2.5 percent at 9:17 a.m. local time. The Hang Seng China Enterprises Index slumped 1.4 percent to a two-year low on Friday. Mainland bourses have been closed for holidays.

China worked to soothe concern over its economy at the Group of 20 gathering in Turkey at the weekend, with officials predicting stabilization in the currency and stock markets in the coming weeks. People’s Bank of China Governor Zhou Xiaochuan said in a statement that the rout in Chinese equities is close to ending, and that state intervention prevented systemic risk and stopped a free-fall.

China WILL deliver an update on its foreign-currency reserves as soon as Monday, providing investors with some idea of how much has been spent by regulators to shore up local markets and the yuan.

The China Financial Futures Exchange on Wednesday moved to limit trading of stock-index futures by lowering the bar for “abnormal trading” and increasing margin requirements and settlement fees.

Source: Bloomberg

Saham Asia Menuju Level Terendahnya Sejak 2012 Jelang Pembukaan Pasar China

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Asian stocks fell, with the regional benchmark index heading for its lowest close since November 2012, as a stronger yen weighed on shares in Tokyo and investors awaited the resumption of trading in China following a holiday.

The MSCI Asia Pacific Index dropped 0.5 percent to 124.17 as of 9:01 a.m. in Tokyo. The gauge slumped 4.8 percent last week, capping its seventh weekly decline, as a contraction in Chinese manufacturing reinforced investor concern about the world’s second-biggest economy. The Standard & Poor’s 500 Index fell 1.5 percent on Friday after August payrolls data failed to provide clarity on the interest-rate outlook.

China worked to soothe concern over its economy at the gathering in Turkey at the weekend, with officials predicting stabilization in the currency and stock markets in the coming weeks. People’s Bank of China Governor Zhou Xiaochuan said in a statement that the rout in Chinese equities is close to ending, and that state intervention prevented systemic risk and stopped a free-fall.

Source: Bloomberg