Oil Holds Rebound Near $42 Before U.S. Crude Stockpile Data

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Oil held its gains near $42 a barrel before U.S. government data forecast to show crude stockpiles expanded for an eighth week in the world’s biggest consumer.

Futures were little changed in New York after rising 2.5 percent Monday as France bombed targets in Syria in response to terrorist attacks in Paris. Inventories probably increased by 1.75 million barrels last week, according to a Bloomberg survey before Energy Information Administration data Wednesday. The average price of crude sold by OPEC fell below $40 a barrel for the first time since 2009, according to the organization’s secretariat in Vienna.

Oil has slumped about 45 percent the past year amid speculation a global glut will persist as the Organization of Petroleum Exporting Countries continues to pump above its collective quota. French President Francois Hollande called on the U.S. and Russia to forge a new alliance to destroy Islamic State.

West Texas Intermediate for December delivery was at $41.86 a barrel on the New York Mercantile Exchange, up 12 cents, at 8:40 a.m. in Hong Kong. The contract climbed $1 to $41.74 on Monday. The volume of all futures traded was about 34 percent below the 100-day average.

Brent for January settlement advanced 9 cents, or 0.2 percent, to $44.56 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of $1.77 to WTI for January.

Source: Bloomberg

Dollar Approaches 7-Month Peak as Hedge Funds Boost Bullish Bets

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The dollar approached a seven-month peak as hedge funds increased wagers the currency will strengthen amid speculation the Federal Reserve will raise interest rates as soon as next month.

Hedge funds and other large speculators boosted bets on dollar gains versus eight major currencies in the last three weeks, in the biggest jump since March 2013, data from the Commodity Futures Trading Commission showed. The greenback strengthened against seven of its 10 developed-market peers as traders looked to U.S. inflation data due Tuesday for clues on whether the Fed will increase interest rates from near zero next month.

The greenback climbed 0.1 percent to 123.29 yen as of 9:26 a.m. in Tokyo, adding to a 0.5 percent advance from Monday, after Japan slipped into a recession last quarter. It was little changed at $1.0684 per euro after gaining 0.8 percent to $1.0686, the strongest close since April 15, in New York.

The U.S. Dollar Index, which tracks the greenback versus major counterparts, climbed 0.5 percent Monday to 99.442. It reached a seven-month high of 99.504 on Nov. 10.

New Zealand’s dollar slid 0.2 percent to 64.78 U.S. cents, adding to a three-day, 1 percent decline, before a milk powder auction Tuesday.

Source: Bloomberg

Asia Stocks Follow U.S. and Europe Shares Higher as Yen Weakens

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Asian stocks rose from an almost six-week low, following gains in U.S. and European shares, as a weakening yen boosted Japanese equities and concern eased from the attacks in Paris.

The MSCI Asia Pacific Index added 0.6 percent to 131.31 as of 9:00 a.m. in Tokyo after closing Monday at the lowest since Oct. 6. Shares rallied during the European and U.S. sessions, with the Standard & Poor’s 500 Index jumping 1.5 percent and the Stoxx Europe 600 Index climbing 0.3 percent. The history of terror incidents around the world over the last 15 years shows market reactions are often sharp and short-lived.

The Asia-Pacific gauge remains 4.7 percent lower this year and may post its first back-to-back annual declines since 2002 as investors assess the extent of China’s economic slowdown amid preparations by the Federal Reserve to raise interest rates as early as next month.

Source: Bloomberg

Japan Stocks Follow U.S. Equities Higher as Paris Impact Fades

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Japanese stocks rose, following U.S. equities higher, after the yen weakened as the fallout on global financial markets from the Paris terrorist attacks faded.

The Topix index rebounded from Monday’s loss to add 1.2 percent as of 9:01 a.m. in Tokyo. All of its 33 industry groups advanced. U.S. stocks jumped the most in three weeks and European equities shrugged off declines to close higher as France expanded an aerial bombardment in Syria in retaliation for the Nov. 13 attacks in Paris that killed at least 129 people.

The Nikkei 225 Stock Average gained 1.2 percent to 19,630.16. The yen traded at 123.27 per dollar after weakening 0.5 percent on Monday. E-mini futures on the Standard & Poor’s 500 Index were little changed after the underlying gauge jumped 1.5 percent on Monday, rebounding after the worst week since an August selloff. The Stoxx 600 Europe Index added 0.3 percent.

The history of terror incidents around the world over the past 15 years shows market reactions are often sharp and, increasingly, short-lived. European shares initially retreated before erasing the loss.

Source: Bloomberg

Asian Stocks to Rebound After U.S. Rally as Dollar Holds Gains

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Asian index futures advanced after U.S. stocks halted a November slump as global financial markets showed resilience in the face of the Paris attacks, with investors refocusing attention on the prospects for additional monetary stimulus after the worst week for equities in two months.

Australian S&P/ASX 200 index rose 0.9 percent by 8:32 a.m. in Tokyo Tuesday, recovering much of Monday’s slide, while contracts on Japanese, Korean and Hong Kong equities gained in their most recent trading. Futures on the Standard & Poor’s 500 Index were little changed after the gauge had jumped the most in three weeks, rebounding from a three-day selloff . European equities shrugged off declines to close higher as France expanded a bombardment in Syria. Oil rose and the yen weakened for a second day.

Demand for haven assets faded over the course of the first trading day since the Paris attacks on Friday, as the history of terror incidents around the world over the last 15 years shows market reactions are often sharp and, increasingly, short-lived. European shares initially retreated before erasing the loss in trading about one-fifth below the 30-day average, while the yen weakened versus the dollar.

Global equities fell last week by the most in two months on speculation an October rally had gone too far, too fast amid renewed signs that economies from China to Europe were slowing. The rebound Monday was led by commodities producers that fell the most a week ago. Two-year Treasury notes halted an advance as futures traders bet the Federal Reserve remains on track to boost rates as soon as next month.

Source: Bloomberg