Oil Rises After Worst Month Since July as OPEC Members Gather

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Oil rose in New York after its biggest monthly decline since July as OPEC ministers arrive in Vienna ahead of this week’s policy meeting.

West Texas Intermediate futures climbed 0.5 percent. Saudi Arabia will discuss all issues and listen to concerns of other members at the Friday gathering, said the nation’s Oil Minister Ali al-Naimi. The Organization of Petroleum Exporting Countries pumped more than its quota in November, exceeding it for an 18th month, a Bloomberg survey showed.  Gasoline advanced after the U.S. changed blending requirements for the fuel.

West Texas Intermediate for January delivery rose 20 cents to settle at $41.85 a barrel on the New York Mercantile Exchange. Total volume was 15 percent below the 100-day average. Prices decreased 11 percent in November.

Brent for January settlement declined 17 cents to end the session at $44.44 a barrel on the London-based ICE Futures Europe exchange. It fell 10 percent in November. The European benchmark crude closed at a $2.59 premium to WTI.

Source : Bloomberg

Gold Settles Lower as Investors Look for Hints on Fed Decision

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Gold futures settled with a loss on Tuesday as investors looked toward upcoming U.S. labor market data and comments from Federal Reserve officials for clues on whether the central bank will decide to lift interest rates when it meets later this month.

Gold for February delivery on Comex fell $1.80, or 0.2%, to settle at $1,063.50 an ounce after posting gains in the previous session, while March silver finished less than half a cent lower at $14.083 an ounce.

Gold prices on Monday climbed 0.9%, with gains fueled by “a short-covering rally thanks to some trader positioning and a modest pullback in the dollar index ahead of a slew of key” economic releases and comments from Federal Reserve officials, said Tyler Richey, co-editor of The 7:00’s Report.

Fed Chairwoman Janet Yellen will speak at separate events Wednesday and Thursday and the monthly U.S. jobs report is due Friday. The employment data are expected to further confirm that the Fed is on track to deliver its first interest-rate hike in nearly a decade when it meets later this month.

But in a speech Tuesday, Chicago Fed President Charles Evans said he’s leaning against a rate-increase decision later this month.

Also Tuesday, U.S. manufacturing data was downbeat, with the Institute for Supply Management’s manufacturing index falling in November to its lowest level since 2009. Still, Steve Murphy, U.S. economist at Capital Economics, said the data “won’t prevent the Fed from raising interest rates” at the mid-December meeting.

The European Central Bank, meanwhile, is expected to deliver further monetary easing on Thursday, which could weaken the euro and boost the dollar But analysts are questioning whether the ECB’s action have already been discounted by the market, potentially leaving little more room for further near-term euro weakness.

In other metals trade, March copper rose 2.3 cents, or 1.1%, to $2.072 a pound after several Chinese producers said they would cut copper output next year. Read: Chinese copper smelters to cut 2016 output

January platinum advanced $2.50, or 0.3%, to $835.40 an ounce, while March palladium slipped lower by $4, or 0.7%, to $539.20 an ounce.

Source : Market Watch

U.S. Stocks Rally Amid Favorable December Trend Following Lull

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U.S. stocks rallied to begin what has historically been the strongest month of the year for global equities, breaking out of a lull that held the Standard & Poor’s 500 Index to its narrowest monthly move in six years as investors await December monetary policy decisions.

The benchmark index added less than 0.1 percent in November as signs of a strengthening economy offset concerns of an imminent interest-rate increase. The gauge is up 2.1 percent this year, headed toward its smallest move in four years. Health-care shares rebounded Tuesday to lead gains after erasing a November advance yesterday in the month’s final session.

The S&P 500 added 1.1 percent to 2,102.49 at 4 p.m. in New York, and closed at its highest level since Nov. 3.

Source: Bloomberg

U.S. Stocks Rise With Treasuries as Data Boost Bets on Slow Hike

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U.S. stocks rose with Treasuries while the dollar weakened as tepid manufacturing data in major economies boosted the prospects for continued central-bank support.

The dollar slipped from a seven-month high versus the euro on speculation the Federal Reserve’s first rate increase in nearly a decade has been priced in, while yields on 10-year Treasury notes slipped on expectations subsequent hikes will be gradual. The Standard & Poor’s 500 Index added to a second monthly gain, while a rally in U.K. banks kept an index of European shares near a three-month high.

An unexpected contraction in American manufacturing added to speculation the Fed won’t be in a rush to raise rates quickly even if it chooses to tighten this month. The odds of an increase remain above 70 percent before government payrolls data due Friday. While factory growth in the euro area accelerated, the slow pace of expansion didn’t alter expectations that the European Central Bank will add to stimulus Thursday.

The S&P 500 climbed 0.6 percent at 12:04 p.m in New York. The index is coming off a 0.1 percent gain in November, as signs of a strengthening U.S. economy offset concerns of an imminent rate increase. The gauge has posted a December advance in six of the past seven years. Its up 1.7 percent in 2015, poised for the smallest gain in four years.

All of the S&P 500’s 10 main groups rose today, with technology and health-care shares performing the best, while energy companies lagged as oil retreated after swinging between gains and losses.

The MSCI All-Country World Index is heading for its first annual loss since 2011, though equities have wrapped up the year with gains on all but five occasions since 1988, with December posting the biggest and most frequent increases of any month, data compiled by Bloomberg show.

Source : Bloomberg

European Shares Fall From 3-Month High After U.S. Manufacturing

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European equities closed lower, dropping from a three-month high, after U.S. factory data raised concern that the world’s largest economy may not be strong enough to withstand higher borrowing costs.

The Stoxx Europe 600 Index reversed an earlier gain to end the day down 0.3 percent. Manufacturing in the U.S. unexpectedly contracted in November at the fastest pace since the last recession. The move came after the Stoxx 600 climbed for a second month in November, taking its rebound from a low in September to 14 percent through Monday.

Gases supplier Linde AG slumped 14 percent, the most since 1999, after cutting its earnings targets for the third time in just over a year. Safran SA dropped 2.5 percent after France lowered its stake in the jet engine maker.

U.K. shares managed to maintain gains after the U.S. data, boosted by advances in its lenders as the Bank of England said all seven major firms passed stress tests. Barclays Plc and Lloyds Banking Group Plc climbed more than 2.4 percent. That pushed the FTSE 100 Index to post one of the biggest gains in western-European markets, with the volume of shares changing hands about 22 percent greater than the 30-day average.

Source: Bloomberg