Euro Heads for Biggest Monthly Loss Since March on ECB Outlook

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The euro headed for its biggest monthly decline since March as economists unanimously forecast the European Central Bank will unveil additional stimulus this week.

The 19-nation currency approached the lowest in seven months versus the dollar as investors are pricing in a 100 percent chance of a 10-basis-point cut in the ECB’s deposit rate on Dec. 3. A gauge of the dollar climbed to the highest since March as futures predict the Federal Reserve will increase interest rates in December, expanding the divergence between the two central banks.

The euro fell 0.1 percent to $1.0583 as of 11:16 a.m. in Tokyo after sliding to $1.0566 on Nov. 25, the lowest since April 14. The currency has weakened 3.8 percent in November, its biggest loss since a 4.2 percent decline in March.

The U.S. Dollar Index, which tracks the greenback against six major peers, gained 0.1 percent to 100.14 after rising to 100.23, the highest since March 16.

Source: Bloomberg

Oil Set for Monthly Decline as OPEC Seen Standing Firm on Supply

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Oil headed for its largest monthly drop since July as Iran signaled the Organization of Petroleum Exporting Countries won’t reduce its production target at a meeting this week.

Futures were little changed in New York and down 10 percent in November. Iran expects no major decisions that would change OPEC’s output target when the group gathers Dec. 4 in Vienna, Oil Minister Bijan Namdar Zanganeh said at a conference in Tehran. Prices retreated at the end of last week as Libya sought to boost supply and Russia ruled out military retaliation against Turkey for downing its jet near the Syrian border.

Oil is set to average below $50 for a fourth month, the longest stretch since the global financial crisis, as a record supply glut showed no signs of ending amid a producers’ fight for market share. Iran has said it will announce plans during the Vienna meeting to expand output, a year after Saudi Arabia led an OPEC decision to keep pumping and drive out higher-cost shale rivals.

West Texas Intermediate for January delivery was at $41.88 a barrel on the New York Mercantile Exchange, up 17 cents, at 11 a.m. Seoul time. The contract ended Friday down $1.33, or 3.1 percent, at $41.71. The volume of all futures traded was about 33 percent below the 100-day average.

Brent for January settlement was 5 cents lower at $44.81 a barrel on the London-based ICE Futures Europe exchange. Prices have slid almost 10 percent this month. The European benchmark crude was at a premium of $2.93 to WTI.

Source: Bloomberg

Japanese Stocks Decline, Paring Second Monthly Gain in Topix

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Japanese stocks slipped, paring the Topix index’s second straight monthly gain, as insurers, shippers and energy explorers led declines.

The Topix index fell 0.6 percent to 1,585 at the trading break in Tokyo, with about nine shares declining for every eight that rose. The measure is on course for a 1.7 percent advance in November following its biggest increase in 2 1/2 years in October. The Nikkei 225 Stock Average slipped 0.4 percent to 19,807.43.

Data on Monday showed Japan’s industrial production rose 1.4 percent in October from a month earlier, missing economists forecasts for a 1.8 percent gain.

Parcel delivery company Yamato Holdings Co. tumbled 3.9 percent to lead declines on the Nikkei 225. Daito Trust Construction Co. gained 0.8 percent after Daiwa Securities Group Inc. raised its investment rating on the real-estate company. Exporters including Toyota Motor Corp. and Honda Motor Co. gained after yen strengthened against the dollar on Friday.

Source: Bloomberg

Shanghai Composite Fluctuates After Biggest Rout in Three Months

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China’s benchmark stock index swung between gains and losses as traders weigh the start of the subscription period for initial public offerings and an International Monetary Fund meeting to decide whether to grant reserve-currency status to the yuan.

The Shanghai Composite added 0.2 percent to 3,443.59 at 9:45 a.m. local time, erasing a loss of as much as 0.4 percent. The gauge posted its biggest loss in three months on Friday after some of the nation’s largest brokerages disclosed regulatory probes, industrial profits fell and concern grew new IPOs will lure funds away from existing shares. Haitong Securities Co. led declines for brokerages on Monday, slumping 9.5 percent as shares resumed trading. Power producers advanced, with China Yangtze Power Co. gaining 2.3 percent.

Hang Seng Index -0.7% to 21,919.53, trading at lowest since Oct. 6 and headed for 3.2% drop for the month.

Source: Bloomberg

Asian Stocks Slide After Chinese Selloff as Material Shares Drop

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Asian stocks fell after Chinese shares posted the biggest one-day selloff in three months. Material and consumer-staple shares led losses on the benchmark index at the start of a pivotal week for the region’s markets.

The MSCI Asia Pacific Index lost 0.3 percent to 132.82 as of 9:02 a.m. in Tokyo, headed for a monthly loss of 1.2 percent, its sixth such decline in seven months. This week brings a decision by the European Central Bank and the last reading on U.S. jobs before the Federal Reserve decides on whether to raise interest rates in December. The Shanghai Composite Index dropped 5.5 percent on Friday, its largest retreat since the depths of a market rout in August, as regulators clamped down on brokerages.

Japan’s Topix index lost 0.3 percent. Data Monday showed a preliminary reading for industrial production rose less than economists estimated in October compared with the previous month, while retail sales climbed more than they had expected.

Source: Bloomberg