Gold Extends Decline to Near One-Month Low Before Fed Meeting

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Gold dropped for a second day to trade near the lowest level in a month as investors awaited this week’s Federal Reserve meeting.

Bullion for immediate delivery retreated as much as 0.3 percent to $1,104.82 an ounce and traded at $1,106.10 by 8:31 a.m. in Singapore, according to Bloomberg generic pricing. The metal fell to $1,098.80 on Friday, the lowest intraday level since Aug. 11.

While about half of the economists in a Bloomberg survey expect a rate increase given the improvement in the U.S. labor market, futures traders are holding odds at 28 percent, with chances for a year-end rise at 59 percent.

Silver fell for a second day while platinum was down for a fourth day.

Source : Bloomberg

Oil Slide Falters Near $45 a Barrel as U.S. Drillers Idle Rigs

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Oil’s decline below $45 a barrel faltered as U.S. drillers idled rigs for a second week amid a global glut.

Futures increased as much as 0.8 percent in New York, paring Friday’s 2.8 percent drop. The number of rigs seeking oil slid to the lowest level in almost two months, according to Baker Hughes Inc. China’s crude processing rose last month as gasoline demand encouraged higher refinery output, data from the National Bureau of Statistics showed Sunday.

Oil slumped last week as Goldman Sachs Group Inc. said the surplus is bigger than it thought and prices could fall as low as $20 a barrel. Leading members of the Organization of Petroleum Exporting Countries are sustaining output while U.S. crude stockpiles remain about 100 million barrels above the five-year seasonal average.

West Texas Intermediate for October delivery rose as much as 34 cents to $44.97 a barrel on the New York Mercantile Exchange and was at $44.85 at 9:05 a.m. Sydney time. The contract slid 3.1 percent last week. The volume of all futures traded was about 60 percent below the 100-day average. Prices have decreased 16 percent this year.

Brent for October settlement, which expires Tuesday, was 7 cents higher at $48.21 a barrel on the London-based ICE Futures Europe exchange. It lost 75 cents, or 1.5 percent, to $48.14 on Friday. The more-active November future rose 9 cents to $49.13.

Source : Bloomberg

China Fixed-Asset Investment Tumbles to Lowest Since 2000

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China’s fixed-asset investment rose at the slowest pace in 15 years and industrial production trailed analyst estimates, raising further question marks over the effectiveness of government efforts to revive growth.

Investment excluding rural households climbed 10.9 percent in the first eight months, the National Statistics Bureau said Sunday, versus 11.2 percent median projection of economists surveyed by Bloomberg.

Industrial output rose 6.1 percent in August from a year earlier, missing the 6.5 percent estimate.

Retail sales rose 10.8 percent in August, beating the projected 10.6 percent gain and July’s 10.5 percent rise.

The weakening economic figures underscore the challenge the government faces in meeting its growth target of 7 percent this year, as exports decline and producer price deflation deepens. Factory shutdowns in Beijing and surrounding provinces before a Sept. 3 military parade in the capital may also have contributed to the weaker-than-forecast output reading.

Source: Bloomberg

Japan Stocks Swing as Investors Await Fed Decision on U.S. Rates

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Japanese stocks fluctuated as investors awaited this week’s decision on U.S. interest rates after data showed China’s fixed asset investment grew at its slowest pace in 15 years. Utilities advanced while phone companies tumbled.

Mobile carriers NTT Docomo Inc., KDDI Corp. and SoftBank Group Corp. sank at least 4.6 percent after Prime Minister Shinzo Abe said reducing the burden on households from mobile phone fees is an important issue to tackle. Kansai Electric Power Co. and Hokuriku Electric Power Co. both jumped 3 percent. Energy explorer Inpex Corp. declined 4.8 percent as crude oil traded below $45 a barrel. Shipper Kawasaki Kisen Kaisha Ltd. jumped 4 percent after Mitsubishi UFJ Morgan Stanley Securities Co. raised its investment rating.

The Topix index slipped 0.3 percent to 1,476.24 as of 9:35 a.m. in Tokyo, swinging from a gain of 0.5 percent after last week capping its biggest weekly increase in almost two months. The Nikkei 225 Stock Average dropped 0.2 percent to 18,223.62.

Source : Bloomberg

Asian Stocks Advance as Investors Weigh China Data, Await Fed

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Asian stocks rose, after posting their first weekly advance since July, as investors awaited this week’s Federal Reserve policy decision and weighed mixed economic reports from China.

The MSCI Asia Pacific Index added 0.3 percent to 127.69 as of 9:01 a.m. in Tokyo. China’s fixed-asset investment rose at the slowest pace in 15 years and industrial production trailed analyst estimates, while August retail sales topped projections, reports published over the weekend showed. Economists are about evenly split on whether the Fed will raise rates Sept. 17, as traders hold bets on a move at 28 percent.

Japan’s Topix index climbed 0.3 percent, as did South Korea’s Kospi index. Australia’s S&P/ASX 200 Index rose 0.4 percent and New Zealand’s NZX 50 Index increased 0.4 percent. Markets in China and Hong Kong have yet to start trading.

China’s industrial output rose 6.1 percent in August from a year earlier, the National Statistics Bureau said Sunday, below the 6.5 percent median estimate of economists surveyed by Bloomberg. Fixed-asset investment climbed 10.9 percent in the first eight months, compared to a median projection of 11.2 percent. The weaker industrial and investment figures underscore the challenge the government faces in meeting its growth target of 7 percent this year, as exports decline and producer price deflation deepens.

Source : Bloomberg