Oil Ends 1.8% Lower on Planned Sale of U.S. Reserves

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Oil futures settled at a two-month low Tuesday after the U.S. government announced plans to sell millions of barrels of oil from its Strategic Petroleum Reserve, as traders bet on a further weekly increase in crude supplies.

December West Texas Intermediate crude fell 78 cents, or 1.8%, to settle at $43.20 a barrel on the New York Mercantile Exchange. That was the lowest settlement since Aug. 27. December Brent crude on London’s ICE Futures exchange lost 73 cents, or 1.5%, to $46.81 a barrel.

The government had announced a “test drawdown and sale” of five million barrels from the SPR in March 2014, but the last significant release was in 2011, when the U.S. sold off 30 million barrels to offset lost production from Libya. The SPR has capacity of 713.5 million barrels, but currently holds about 695 million.

WTI oil prices have dropped for two straight weeks, dragging the prices of other energy products with them.

Traders will also be focusing on the Federal Reserve meeting, which ends Wednesday, for hints about the fate of interest rates.

Source: MarketWatch

Gold Little Changed as Traders Await Fed Decision on U.S. Rates

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Gold traders are waiting on the sidelines ahead of a meeting of U.S. policy makers that could give clues on when interest rates will rise.

Futures closed little change in New York, and aggregate trading was 35 percent below the 100-day average, according to data compiled by Bloomberg. On Monday, about 93,000 contracts changed hands, the lowest in three weeks. Federal Reserve officials start a two-day meeting on Tuesday.

Investors have been building up positions for a rally amid speculation that the Fed will refrain from raising rates this year. Higher borrowing costs curb the appeal of gold because it doesn’t give returns like bonds or equities. Former Fed Chairman Ben S. Bernanke said in a CNN interview aired Sunday that policy makers will need to weigh the weakness in China and other emerging markets against the strength of the U.S. economy.

Gold futures for December delivery fell less than 0.1 percent to settle at $1,165.80 an ounce at 1:43 p.m. on the Comex in New York. Futures have gained 4.5 percent this month.

Traders put the probability that the Fed will raise rates at its meeting this week at 4 percent, according to data compiled by Bloomberg. The odds of increasing borrowing costs in December are 33 percent, the data show.

Silver futures fell on the Comex, while platinum and palladium declined on the New York Mercantile Exchange.

Source: Bloomberg

U.S. Stocks Decline Before Fed Amid Earnings Reports, Economic Data

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U.S. stocks declined amid mixed earnings reports and data that renewed concern on the strength of the global economy as the Federal Reserve began a two-day monetary policy meeting.

A rally in equities has tapped the brakes as investors await the latest from the Fed. Policy makers kept interest rates near zero last month, opting to hold off for a better read on the impact of weaker growth in China and lackluster inflation. Central bankers in Europe and China last week signaled commitment to bolstering their economies, which helped the Standard & Poor’s 500 Index erase a loss for the year.

The S&P 500 fell 0.3 percent to 2,065.98 at 4 p.m. in New York, after briefly slipping below its average price during the past 200 days.

International Business Machines Corp. fell 4.4 percent to a five-year low. The company disclosed today that regulators are investigating its accounting treatment of certain transactions in the U.S., the U.K. and Ireland.

Some 43 S&P 500 companies report earnings today, with analysts projecting profits for index members dropped 6.1 percent in the third quarter. Of the companies that have released results this season, 74 percent have exceeded profit projections, while 57 percent missed sales estimates.

Source : Bloomberg

Europe Stocks Fall for a Second Day as Earnings Miss, Oil Drops

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European stocks fell for a second day as some disappointing earnings reports cast doubt on the strength of the euro-area economic recovery, amid weak commodity and oil prices.

Total SA and Royal Dutch Shell Plc slid at least 1.9 percent, contributing the most to a drop in energy stocks. Novartis AG pulled health-care shares down, falling 1.6 percent after reporting profit that missed estimates and agreeing to pay $390 million to settle claims that it paid kickbacks to some U.S. pharmacies. Anglo American Plc was among the biggest mining decliners, falling 5.7 percent. BASF SE dragged chemical shares lower, losing 4.7 percent after cutting its targets for sales and profit this year.

The Stoxx Europe 600 Index slid 1.1 percent to 371.88 at the close of trading. Shares yesterday snapped a two-day rally, falling from a two-month high, amid speculation about the strength of economies in Europe, Asia and the U.S.

Source: Bloomberg

U.S. Stocks Fluctuate Before Fed Amid Earnings, Economic Data

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U.S. stocks fluctuated amid mixed earnings reports and data that renewed concern on the strength of the global economy as the Federal Reserve begins a two-day monetary policy meeting.

A rally in equities has tapped the brakes as investors await the latest from the Fed. Policy makers kept interest rates near zero last month, opting to hold off for a better read on the impact of weaker growth in China and lackluster inflation. Central bankers in Europe and China last week signaled commitment to bolstering their economies, which helped the Standard & Poor’s 500 Index erase a loss for the year.

The S&P 500 fell 0.4 percent to 2,063 at 12:39 p.m. in New York, and earlier dropped near its average price during the past 200 days. The Dow Jones Industrial Average slipped 35.01 points, or 0.2 percent, to 17,588.04. The Nasdaq Composite Index also declined 0.2 percent.

Source : Bloomberg