Aust dollar surges past US72c

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Strong commodity prices have helped the Australian dollar extend the rally it started on Tuesday with better-than-expected economic commentary from the Reserve Bank of Australia (RBA).

At 6am (AEDT) on Thursday, the currency was trading at US72.10c, up from US71.85c on Wednesday.

Over the past 24 hours the unit has traded between a low of US71.50c and a high of US72.36c, its best mark since September 18.

The Australian dollar had hit its high early in the session when crude prices were up over 2 per cent, with a lift in US stockpiles forcing oil to give up its gains in late trade.

The local currency had began its sharp ascent on Tuesday as the RBA was more upbeat than expected and opted against talking down the Australian dollar.

Source: Market Spectator

Oil Falls From 1-Month High as U.S. Crude Supplies, Output Climb

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Oil dropped from a one-month high after government report showed that U.S. crude inventories and production climbed.

Nationwide, stockpiles rose for a second week, according to the Energy Information Administration. Supplies at Cushing, Oklahoma, the delivery point for WTI contracts, increased for the first time in six weeks and production rebounded from a 10-month low. Refinery operations slowed to the lowest level in seven months.

Oil climbed as much as 2.4 percent in New York before the release of the EIA data at 10:30 a.m. in Washington on speculation supplies might drop. Prices had slumped to a six-year low in August as the global glut dragged on. U.S. crude stockpiles remain about 100 million barrels above the five-year average and OPEC continues to pump above its target.

Source: Bloomberg

Asian Stock Futures Mixed Amid Rally as Chinese Markets Return

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Asian index futures signaled a mixed day for the region’s stocks, with mainland Chinese markets returning to the fray after missing the global equity rally due to a week-long holiday.

While futures on South Korea stocks climbed with Australian and New Zealand shares, a two-day gain in the yen dimmed prospects for Japanese equities and Hong Kong futures also retreated. Chinese markets, which were at the epicenter of August’s global turmoil, will trade for the first time since Sept. 30, with stocks around the world posting their longest rally since April in Shanghai’s absence and emerging-market assets soaring. Oil resumed gains after an increase in U.S. supplies sent it below $48 a barrel.

New Zealand’s S&P/NZX 50 Index added 0.3 percent in Wellington, while the S&P/ASX 200 Index in neighboring Australia rose 0.3 percent. Contracts on the Kospi index in Seoul foreshadowed gains of 0.8 percent, while those on Hong Kong’s Hang Seng and Hang Seng China Enterprises indexes dropped at least 0.3 percent.

Futures on Japan’s Nikkei 225 Stock Average lost 0.2 percent to 18,340 by 3 a.m. in Osaka, with the yen strengthening 0.4 percent over the past two days. The currency was little changed early Thursday at 119.97 per dollar. Yen-denominated futures on the Nikkei 225 rose 0.1 percent to 18,355 in Chicago, after rising 1 percent last session.

The Deutsche X-trackers Harvest CSI 300 China A-Shares exchange-traded fund, the largest U.S. ETF tracking Chinese stocks, jumped 2.8 percent Wednesday and has climbed 6.7 percent this month.

Source : Bloomberg

U.S. Stocks Rise as Biotechs Rebound, Commodity Shares Advance

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The Standard & Poor’s 500 Index reached its highest level since the August selloff, rising as biotechnology companies rebounded and energy shares extended their longest rally since December 2013.

The benchmark index again tested points where an advance petered out at the end of August and a September rally wilted. The gauge had erased gains earlier Wednesday after briefly climbing above its average price during the past 50 days. Commodity stocks rose for a seventh session, weathering through a late-morning fade, with the appeal of the beaten-down energy and raw-materials groups enhanced by the dollar’s recent weakness.

The S&P 500 advanced 0.8 percent to 1,995.80 at 4 p.m. in New York, rebounding from a midday drop of as much as 0.2 percent that erased an early rally. The index retreated twice after reaching its 50-day moving average at 1,996.57.

Earnings season will grab an increased share of investors’ attention this week, with Alcoa Inc. unofficially kicking off the reporting season after markets close tomorrow. Companies reporting next week include Johnson & Johnson, Intel Corp. and JPMorgan Chase & Co.

Analysts project profits for S&P 500 members dropped 6.9 percent in the third quarter. Still, a Fed measure of corporate income has posted its biggest quarterly increase since 2012, suggesting the overall picture for profits may be skewed by downgrades at energy producers combating weak oil prices.

Among the season’s early reporters, Yum Brands Inc. tumbled the most in 13 years after the owner of the KFC, Pizza Hut and Taco Bell chains posted profits that missed analysts’ estimates. Results were hurt by a lingering slump in China.

Stocks have swung between gains and losses since August’s tumble, amid concern about a slowing global economy triggered by weakness in China, and confusion over the Federal Reserve’s policy intentions. The S&P 500 has rebounded 4 percent since ending its worst quarter in four years, and is up 6.9 percent from an August low reached during the index’s first correction since 2011.

Expectations for higher borrowing costs this year have diminished since the weaker-than-expected September jobs report last Friday. Traders are pricing in a 39 percent chance of an increase in December and 61 percent probability of a move higher in March.

Source: Bloomberg

U.S. Stocks Fluctuate as S&P 500 Index Stalls Near Recent Highs

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U.S. stocks fluctuated, as energy companies pared a rally and the Standard & Poor’s 500 Index stalled near its highest levels since the August selloff.

The S&P 500 rose 0.1 percent to 1,980.96 at 12:34 a.m. in New York, after gaining as much as 1 percent. The Dow Jones Industrial Average slipped 4.5 points to 16,785.65. The Dow earlier was up as much as 173 points. The Nasdaq Composite Index declined 0.1 percent.

Stocks have swung between gains and losses since August’s tumble, amid concern about a slowing global economy and confusion over the Federal Reserve’s policy intentions. The S&P 500 has rebounded 3.2 percent since ending its worst quarter in four years, and is up 6.1 percent from an August low reached during the index’s first correction since 2011.

The Chicago Board Options Volatility Index was little changed Wednesday at 19.39. The measure of market turbulence known as the VIX was down for a sixth day yesterday, the longest stretch since July.

Attention will also shift to earnings this week, with Alcoa Inc. unofficially kicking off the reporting season after markets close tomorrow. Companies reporting next week include Johnson & Johnson, Intel Corp. and JPMorgan Chase & Co.

Analysts project earnings for S&P 500 members dropped 6.9 percent in the third quarter. Still, a Fed measure of corporate income has posted its biggest quarterly increase since 2012, suggesting the overall picture for profits may be skewed by downgrades at energy producers combating weak oil prices.

Source: Bloomberg