Gold Touches One-Month Low as Fed Rate Speculation Mounts

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Gold touched a one-month low after Federal Reserve Chair Janet Yellen told a congressional hearing that a move on interest rates in December is a “live possibility” if economic data hold up.

Bullion fell in the past five quarters as a strengthening economy raised concern that the Fed would tighten policy. Last week, the Federal Open Market Committee signaled the economy may be strong enough to raise rates. Reports Wednesday showed U.S. service producers unexpectedly expanded in October at the second-fastest pace in a decade, while companies added more workers.

Gold futures for December delivery dropped 0.7 percent to settle at $1,106.20 an ounce at 1:41 p.m. on the Comex in New York, after touching $1,105.60, the lowest since Oct. 2.

Source: Bloomberg

Oil Tumbles After U.S. Crude Stockpiles Increase a Sixth Week

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Oil dropped the most in three weeks after government data showed that U.S. crude inventories climbed.

Futures have slumped almost 40 percent in the past year amid speculation the global glut will be prolonged as the Organization of Petroleum Exporting Countries continues to pump above its quota. Oil may never rise to $100 a barrel again, said Vitol Group, the world’s largest independent oil trader. Shipments from a Libyan port were halted Tuesday amid a dispute between the nation’s two rival administrations, while a strike crimped Brazilian output.

West Texas Intermediate for December delivery slipped $1.49, or 3.1 percent, to $46.41 a barrel at 1:31 p.m. on the New York Mercantile Exchange. WTI is heading for the biggest drop since Oct. 12. The volume of all futures traded was 6.4 percent above the 100-day average.

Brent for December settlement fell $1.90, or 3.8 percent, to $48.64 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a $2.23 premium to WTI.

Source: Bloomberg

Most Asia Stocks Climb After Yellen as Japan Gains on Weaker Yen

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Most Asian stocks advanced after comments from Federal Reserve Chair Janet Yellen boosted the dollar against the yen, spurring equity gains in Tokyo.

Two stocks rose for each that fell on the MSCI Asia Pacific Index, which added 0.1 percent to 134.92 as of 9:09 a.m. in Tokyo. The Topix index climbed 0.9 percent. U.S. shares slid on Wednesday and the greenback strengthened after Yellen, speaking before the House Financial Services Committee, said an improving economy has set the stage for a December interest-rate increase if reports continue to assure policy makers that inflation will accelerate over time. Companies in the U.S. added 182,000 workers to payrolls in October, signaling steady improvement, figures released by ADP Research Institute showed.

Following Yellen’s remarks, Fed Bank of New York President William Dudley said at press briefing he “completely” agrees with Yellen that December is “a live possibility” for liftoff on rates. Investors are also waiting to hear from Vice Chair Stanley Fischer. Traders now price in a 58 percent chance the central bank will increase rates at its December meeting.

South Korea’s Kospi index lost 0.3 percent. Australia’s S&P/ASX 200 Index sank 1.1 percent. New Zealand’s S&P NZX 50 Index slid 0.2 percent. Markets in China and Hong Kong have yet to start trading.

Source: Bloomberg

Topix Raih Gain untuk Hari Kedua seiring Komentar Yellen Picu Reli Dollar

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Saham Jepang naik setelah Ketua Federal Reserve Janet Yellen mengatakan bank sentral bisa mengangkatkan suku bunga segera mungkin bulan depan, yang akhirnya mendorong dolar lebih tinggi terhadap yen.

Indeks Topix naik dengan 0,4 persen ke level 1,546.76 pada pukul 09:01 pagi waktu Tokyo, dengan asuransi dan pengeksplor energi memimpin keuntungan. Indeks Nikkei 225 Stock Average naik 0,5 persen ke level 19,029.75. Yen diperdagangkan pada level 121,56 per dolar setelah melemah 0,4 persen kemarin menyusul komentar Yellen tersebut.

Jika data ekonomi terus menunjukkan pertumbuhan dan harga semakin menguat, kenaikan suku bunga Desember akan menjadi "kemungkinan yang akan dilakukan," kata Yellen, Rabu dalam pernyataannya sebelum House Financial Services Committee di Washington. Setelah komentar Yellen, pedagang berjangka menaikkan kemungkinan kenaikan suku bunga pada pertemuan 15-16 Desember untuk 58 persen dari 50 persen sehari sebelumnya. Kemungkinan kenaikan suku bunga pada akhir 2015 yakni 34 persen dua minggu yang lalu, sebelum pertemuan Fed pada bulan Oktober.

E-mini futures pada indeks Standard & Poor 500 sedikit berubah setelah indeks yang mendasari kehilangan 0,4 persen pada hari Rabu, seiring komentar Yellen yang menghentikan reli ekuitas AS dan mengirim dua tahun Treasury yields ke level tertinggi sejak 2011. (sdm)

Sumber: Bloomberg

U.S. Stocks Slip From Three-Month High on Interest Rate Concern

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U.S. stocks slipped, retreating from a three-month high, after data on payrolls and remarks from Federal Reserve Chair Janet Yellen lifted bets that the central bank is closer to raising interest rates.

Earnings results were influencing some of the biggest movers in the Standard & Poor’s 500 Index. Time Warner Inc. and 21st Century Fox Inc. fell at least 6 percent, weighing on media companies after their results disappointed. Motorola Solutions Inc. lost 6.5 percent after its outlook was short of estimates. Michael Kors Holdings Ltd. jumped 11 percent after its profit topped estimates.

Yellen, speaking before the House Financial Services Committee, said no decision has been made yet on adjusting interest rates at the December meeting. Should data show the economy is growing at a pace sufficient to generate further improvements in labor markets and boost inflation, she repeated that a boost is “live possibility.”

The S&P 500 slipped 0.4 percent to 2,102.44 at 12:44 p.m. in New York, after yesterday reaching its highest since July. The Dow Jones Industrial Average declined 52.78 points, or 0.3 percent, to 17,865.37. The Nasdaq Composite Index fell 0.1 percent.

Source : Bloomberg