Yen Bulls Burned After BOJ's Surprise Spurs Biggest Rout in Year

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The currency held losses against all major peers and bond yields dropped to fresh records on Monday after Kuroda unexpectedly announced a negative interest-rate strategy on Friday, setting off the yen’s biggest drop against the dollar since October 2014. The move hammered hedge funds and other large speculators that had built up the most bullish yen position in almost four years as a rout in global stocks spurred demand for havens.

The yen fell 0.2 percent against the dollar to 121.33 as of 9:01 a.m. in Tokyo after slumping as much as 2.3 percent on Friday to 121.69, its lowest since Dec. 18. The currency closed down 1.9 percent at 121.14 on Friday, its biggest daily decline since October 2014 when the BOJ surprised markets by expanding its stimulus. The yen fell 0.7 percent in January.

Source : Bloomberg

Oil Records Second Weekly Gain Amid Output Cut Speculation

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Oil recorded a second weekly gain amid speculation that OPEC and Russia will meet to discuss trimming crude production to bolster prices.

Russian Energy Minister Alexander Novak said that while OPEC member Venezuela proposed a meeting next month, nothing is scheduled. Russia, after months of insisting it was happy to keep pumping at full throttle, suggested in recent comments it is open to compromise with the Organization of Petroleum Exporting Countries. Equities climbed as the Bank of Japan’s unexpected monetary stimulus boosted confidence that central banks remain vigilant of slowing economic growth.

Oil has pared its decline this year to about 9 percent after plunging to a 12-year low. Global markets remain volatile because of concerns about brimming U.S. stockpiles and rising exports from Iran following the removal of sanctions against the country. OPEC’s January crude output climbed to the highest level in data compiled by Bloomberg going back 20 years as Indonesia’s membership was reactivated.

West Texas Intermediate for March delivery rose 40 cents to settle at $33.62 a barrel on the New York Mercantile Exchange. The contract climbed as much as 3.6 percent to $34.40 earlier. Total volume traded was 46 percent above the 100-day average.

Brent for March settlement, which expires Friday, rose 82 cents, or 2.4 percent, to $34.71 a barrel on the London-based ICE Futures Europe exchange.

Source: Bloomberg

Asian Stocks Advance for Fourth Day Amid Central Bank Optimism

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Asian stocks rose, with the regional benchmark index heading for its fourth day of advances, as shares in Tokyo extended Friday’s rally after the Bank of Japan stepped up its monetary stimulus.

The MSCI Asia Pacific Index gained 0.4 percent to 121.82 as of 9:05 a.m. in Tokyo, extending its longest winning streak of the year as optimism grew that central banks around the world will support financial markets.

Policy makers took the sting out of the worst start to a year since 2009 for global equities, helping to ease a selloff that wiped more than $5 trillion from market value. The European Central Bank’s indication it could expand stimulus as soon as March was followed by the Federal Reserve standing pat on interest rates and noting its concern over the global situation. The BOJ outdid them both, shocking investors Friday by joining the ECB in imposing negative rates, a strategy once considered unthinkable among central bankers that’s aimed at stoking spending.

Japan’s Topix index jumped 1.2 percent, adding to Friday’s 2.9 percent surge, as the yen maintained losses near a six-week low. South Korea’s Kospi index advanced 0.2 percent. Australia’s S&P/ASX 200 Index gained 0.9 percent. New Zealand’s benchmark gauge increased 0.4 percent.

Futures on the FTSE China A50 Index added 0.4 percent in most recent trading, while those for Hong Kong’s Hang Seng Index slipped 0.7 percent. The Shanghai Composite Index rallied 3.1 percent on Friday amid speculation the steepest monthly selloff since the global financial crisis was overdone, while the central bank injected more liquidity into the financial system to avert a cash crunch before this month’s holidays.

Source : Bloomberg

Japan Stocks Rise as Topix Pares Worst Annual Start Since 2009

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Japanese stocks rose for a second day after the Bank of Japan’s unexpected boost to stimulus, paring the Topix index’s worst start to a year since 2009. Lenders fell again following the central bank’s decision to start charging for some of their deposits held at the institution.

The Topix index added 1 percent to 1,446.97 as of 9 a.m. in Tokyo, after closing higher on Friday amid wild swings as investors assessed the BOJ’s plan to introduce a negative interest rate on some deposits. The Nikkei 225 Stock Average gained 1 percent to 17,688.83. The yen traded at 121.35 per dollar after slumping 1.9 percent on Friday.

Gains on Friday pared the Topix’s January loss to 7.5 percent. The measure fell into a bear market on Jan. 20, buffeted by concerns of a slowdown in China and the rout in oil and other commodities. Banks, energy explorers and insurers were the only decliners among the 33 Topix industry groups on Monday.

Source : Bloomberg

U.S. Stocks Trim January Rout Amid BOJ Action

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The U.S. stocks ended the worst January since 2009 with the best one-day gains in more than four months, after earnings from Microsoft Corp. exceeded expectations and the Bank of Japan stepped up monetary stimulus.

Equity gains accelerated in the final hour, with the strong finish a fitting end to a weak month that featured sharp reversals on an almost daily basis. Microsoft led the surge Friday with its biggest gain in three months. Nine of the S&P 500’s 10 main groups rose at least 1.6 percent. Amazon.com Inc. was a blemish, tumbling 7.6 percent as earnings for the holiday quarter missed estimates.

S & P 500 rose 2.5 percent to 1,939.72 at 4 p.m. in New York. The gauge slumped 5.1 percent in January, its worst start to a year since the height of the financial crisis.

Stocks swung between gains and losses this week as investors assessed corporate earnings and the degree to which central banks will intervene to help stem increasing volatility and a dimming outlook for global growth.

Prior to today’s unexpected action from the Bank of Japan to adopt a negative interest-rate strategy, the European Central Bank signaled last week it could boost stimulus as soon as March. The Federal Reserve said Wednesday it was watching to see how the global economy and markets impact the U.S. outlook.

Source : Bloomberg

Dolar Australia Dekati Level US71c

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Dolar Australia menguat seiring rebound komoditas dan pelemahan greenback.

Pada pukul 07:00 (AEDT), unit lokal diperdagangkan pada level US70.78c, naik dari level US70.40c Kamis.

Semalam, mata uang mencapai posisi tertinggi tiga minggu di level US 71,29 c.

Penasihat Keuangan klien Senior OM Stuart Ive mengatakan rally tiga hari mata uang berlanjut seiring harga komoditas yang lebih tinggi menepikan risk-on appetite di pasar.

Harga minyak sendiri memantul dari level terendah 12-tahun terbaru mereka, dengan minyak mentah melonjak tiga persen semalam.

Namun masih memangkas kembali beberapa dari mereka keuntungan.

Tidak ada rilis ekonomi domestik utama yang dijadwalkan untuk dirilis pada hari Jumat, tetapi investor akan mengawasi keputusan kebijakan moneter Bank Sentral Jepang. (sdm)

Sumber: BusinessSpectator

Pound Climbs as Accelerating Growth Counters ''Brexit'' Concern

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The pound rose the most in seven weeks after a report showed the U.K.’s economic expansion accelerated in the fourth quarter.

Sterling’s gain versus the dollar reversed a decline Wednesday which was the biggest in almost two weeks. Britain’s economy grew 0.5 percent in the final three months of 2015, compared with 0.4 percent in the third quarter, and matching the median forecast of analysts surveyed by Bloomberg.

The pound still headed for its third monthly decline versus the U.S. currency, having slumped to an almost seven-year low last week, weighed down by whipsawing financial markets and concern that the U.K. will vote to exit the European Union.

The pound rose 1.1 percent to $1.4390 at 4:13 p.m. London time, the biggest gain since Dec. 9, paring its monthly decline to 2.3 percent. The U.K. currency fell to $1.4080 on Jan. 21, the lowest since March 2009. Sterling gained 0.7 percent to 76.03 pence per euro, having weakened 1 percent a day earlier.

Source: Bloomberg

Europe Stocks Snap 2-Day Gain as Roche, H&M Earnings Disappoint

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Worse-than-estimated earnings from companies including Roche Holding AG and Hennes & Mauritz AB dragged European stocks lower.

Roche slid 3.8 percent, leading drugmakers lower. H&M dropped 4.8 percent after also warning a stronger dollar will continue to weigh on first-quarter profit. Stocks have moved more in step with with crude prices lately, and Europe’s benchmark deepened losses after energy shares pared some gains.

The Stoxx Europe 600 Index dropped 1.6 percent at the close. It swung between gains and losses at least six times, falling as much as 2.2 percent and rising as much as 0.3 percent. Worries about global growth amid a rout in oil prices and a slowdown in China have sent the Stoxx 600 down 8.5 percent this month, putting it on track for the worst January since 2008.

Volatility has been on the rise, with the VStoxx Index of euro-area market stress heading for its biggest monthly gain since August. The volume of futures traded shows investors are betting the swings will only get worse.

Among other stocks moving on corporate results, First Group Plc slid 12 percent after lowering its forecast for full-year operating profit. Tele2 AB slumped 11 percent after the Swedish wireless carrier predicted earnings that missed analysts’ estimates.

Source: Bloomberg

U.S. Stocks Rebound as Oil Surges, Facebook Leads Rally in Tech

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U.S. stocks rebounded from a selloff Wednesday as better-than-estimated results from Facebook Inc. boosted technology shares and crude oil rallied for a third day to lift energy producers.

The Standard & Poor’s 500 Index gained 0.9 percent to 1,899.64 at 9:32 a.m. in New York, after sliding 1.1 percent yesterday, as the gauge alternated between daily gains and losses for a fifth session. Oil rose to a three-week high in New York after Interfax reported that OPEC and other producers will meet in February to discuss a potential output cut.

Stocks dropped yesterday after the Federal Reserve, while largely maintaining its policy stance, signaled financial-market turmoil may pose risks to its economic outlook. An Apple-led slump in technology shares and Boeing Co.’s biggest drop in 14 years also weighed on equities.

Investors are looking to earnings as a possible bright spot in the worst month for stocks in at least five years. Analysts estimate profit at S&P 500 firms fell 6.3 percent in the fourth quarter, better than predictions a week earlier that called for a 7 percent slump. Of those that have already posted results, 80 percent beat earnings projections and 51 percent exceeded sales forecasts. Amazon and Microsoft Corp. are due to report results later today.

Fed policy makers left interest rates unchanged yesterday and said they still expect to raise borrowing costs at a “gradual” pace, while watching to see the impact of the global economy and markets. The comments sent the probability of a March hike lower, to 12 percent from about one-in-four odds before the meeting.

Data today showed orders for business equipment fell in December by the most in 10 months, a sign U.S. companies were slashing capital investment even before the turmoil in global financial markets. Orders for all durable goods -- items meant to last at least three years -- slumped 5.1 percent, the most since August 2014 and reflecting a broad-based pullback.

Source : Bloomberg

Europe Stocks Halt 2-Day Gain; Deutsche Bank Falls After Results

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European stocks were little changed, after rising four times in the past five sessions, as investors weighed earnings reports and gains in energy producers.

Deutsche Bank AG slid 2.3 percent after posting its first annual loss since 2008. Hennes & Mauritz AB dropped 3.5 percent after its fourth-quarter earnings missed analysts’ estimates. Seadrill Ltd. and Subsea 7 SA climbed at least 4.7 percent, leading an advance in oil-and-gas companies.

The Stoxx Europe 600 Index dropped less than 0.1 percent at 8:17 a.m. in London. U.S. equities fell yesterday amid bad earnings and after the Federal Reserve indicated no discernible shift in its stance. Officials reiterated they will raise rates at a gradual pace, while watching to see the effect of the global economy and markets on the U.S. outlook.

Worries about global growth amid a rout in oil prices and a slowdown in China have weighed on stocks in 2016, sending the Stoxx 600 down 7 percent. That puts it on course for the worst January since 2008. Still, speculation of more stimulus from the European Central Bank and better-than-forecast earnings from some companies have helped staunch losses after the benchmark sank to its lowest level since October 2014 last week.

Source: Bloomberg

Gold Slips as Fed Policy Statement Looms

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Gold futures inched lower Wednesday ahead of an eagerly awaited policy statement from the Federal Reserve due after prices for the metal settle for the session.

February gold was $2.80, or 0.2%, lower at $1,117.80 an ounce, after the precious metal closed Tuesday at its highest level since Nov. 2. April gold which is also among the most active contracts, traded at $1,117.80, down $2.80, or 0.3%.

Although the Fed isn’t expected to raise rates at its two-day policy meeting that began Tuesday, it is slated to release a statement at 2 p.m. Eastern Time, 30 minutes after the settlement price for gold is set. The U.S. central bank’s policy statement could reveal clues about the Fed’s pace of interest-rate hikes, which can influence momentum for precious metals that don’t offer a yield.

A slowdown in the global economy has resulted in a flight to dollars, which has increased the value of the buck. A stronger dollar can weigh on dollar-denominated assets, making them less attractive to holders of other currencies.

In other metals, March silver gave up 4.4 cents, or 0.3%, to trade at $14.52 an ounce. March copper traded at $2.073 a pound, up 3.6 cents, or 1.7%. April platinum rose $6.80, or 0.8%, to $883.70 an ounce, while March palladium added $8.75, or 1.8%, to $501.50 an ounce. (sdm)

Source: Bloomberg

Oil Ends at 2-Week High as Talk of Oil-Producer Cuts Grow

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Oil futures settled at a more than two-week high on Wednesday, buoyed by growing expectations that major oil producers may come to an agreement on output cuts, as U.S. government data showed a dip in domestic crude production.

March West Texas Intermediate crude rose 85 cents, or 2.7%, to $32.33 a barrel on the New York Mercantile Exchange. That was the highest settlement for a most-active contract since Jan. 8. Prices were trading around $30.69 before the release of the production data.

March Brent crude the global oil benchmark, jumped $1.30, or 4.1%, to $33.10 a barrel on London’s ICE Futures exchange.

Source : Marketwatch

U.S. Stocks Fall After Fed Stands Pat as Apple, Boeing Lead Drop

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U.S. stocks sank following no discernible shift in stance from the Federal Reserve amid recent market turmoil, as Apple Inc. and Boeing Co. led a slide after their outlooks disappointed investors.

The Standard & Poor’s 500 Index fell 1.1 percent to 1,883.06 at 4 p.m. in New York, after swinging between gains of as much as 0.7 percent and a 1.6 percent loss.

Fed policy makers left interest rates unchanged and said they still expect to raise borrowing costs at a “gradual” pace while watching to see how the global economy and markets impact the U.S. outlook. Since the Fed raised interest rates last month for the first time in almost a decade, turbulence in financial markets and a dimming of the outlook for global growth have spurred investors to expect a slower rise in borrowing costs.

The median projection of policy makers’ forecasts in December called for four quarter-point rate increases in 2016, while futures markets indicate traders see fewer. The probability of a raise in March has fallen to 23 percent, from even odds at the start of the year.

Anxiety fueled by China’s slowdown and a rout in oil prices has hammered stocks since the start of the year, wiping as much as $2.4 trillion from the value of U.S. equities alone. The S&P 500 remains on track for its worst January since 2009, with results from Apple Inc. and Boeing Co. offering little relief from worries that weakness in China is festering.

Equities already had a volatile day leading into the Fed’s statement, beginning with a selloff led by Apple and Boeing. Oil prices then recovered from an early drop to spark a late-morning rally in energy shares. Banks boosted the move by building on yesterday’s climb, only to shave their advance after word from the Fed.

Source : Bloomberg

U.S. Stocks Climb as Oil Rally Overcomes Apple; Treasuries Slip

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Crude continued to set the tone on global financial markets, with U.S. stocks rallying virtually in lockstep with oil after data showed a drawdown at a key American supply hub. Treasuries fell and the dollar fluctuated before the Federal Reserve’s policy decision.

The Standard & Poor’s 500 Index advanced after falling as much as 0.9 percent, with energy shares leading gains as crude surged above $32 a barrel. Equities slid earlier after disappointing results from Apple Inc. and Boeing Co. signaled slowing global growth is weighing on corporate America. Data showed sales of new homes in the U.S. rose more than forecast in the last report on the economy before the Fed’s 2 p.m. decision in Washington.

The S&P 500 added 0.3 percent at 11:55 a.m. in New York, while the Nasdaq 100 Index lost 0.7 percent. The broader index is headed for a January loss of more than 6.5 percent, as anxiety about global growth, fueled by China’s slowdown and a rout in oil, has wiped as much as $2.4 trillion from the value of U.S. equities this year.

Energy shares jumped 1.4 percent on the oil rebound, while financial shares climbed 1 percent, adding to a rally on Tuesday.

Apple, the world’s most valuable company, was the biggest drag on both indexes. It dropped 5 percent after forecasting its first sales decline since 2003. Suppliers to Apple and the smartphone sector also retreated, with losses at ARM Holdings Plc, Dialog Semiconductor Plc and AMS AG.

Source : Bloomberg

Europe Shares Rise in Late Trade as Oil Boosts Energy Companies

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European stocks erased declines to advance in the final minutes of trading as oil rebounded and investors assessed value after some disappointing earnings reports.

A measure of energy companies recovered in afternoon trade as oil rose after data showed stockpiles at the biggest U.S. storage hub dropped. Royal Dutch Shell Plc added 2.9 percent after winning shareholder approval to buy BG Group Plc, which gained 3.5 percent. BASF SE lost 1.8 percent after the world’s largest chemical maker said it will book a 600-million euro ($652 million) charge in the fourth quarter because of lower oil and gas prices.

The Stoxx Europe 600 Index advanced 0.3 percent to 340.24 at the close of trading, erasing losses of as much as 1 percent. The index is heading for a monthly decline of 7 percent, its biggest since August. Shares are trading at about 14.6 times projected earnings, the lowest in more than a year. A measure of volatility in the market has risen 25 percent in January and reached its highest level since September last week.

The Federal Reserve releases a monetary-policy statement after the close of European trading. Investors will be looking for indications of the U.S. central bank’s intentions regarding interest rates after January’s market turmoil. Traders are pricing in zero percent chance of a rate hike this month and 25 percent odds of an increase in March.

Among stocks moving on financial updates, Novartis AG dropped 3.7 percent after the Swiss drugmaker posted earnings and sales that missed projections. Ericsson AB slid 6.3 percent as its fourth quarter was less profitable than analysts predicted.

Source: Bloomberg

Oil Rises Amid Talk That OPEC, Russia to Reconsider Production

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Oil climbed after Iraq’s oil minister said at a conference in Kuwait that Saudi Arabia and Russia are now more flexible about cooperating to cut output.

Futures rose 3.7 percent in New York. Saudi Arabia and Russia, the world’s biggest oil producers, have become more flexible about collaborating to trim output as crude prices have fallen to unforeseen levels, Iraqi Oil Minister Adel Abdul Mahdi said Tuesday. Russia could work with OPEC to remove supply, OAO Lukoil Vice President Leonid Fedun told state news agency Tass.

Oil is down 15 percent this year as volatility in global markets adds to concern over ample U.S. stockpiles, unfettered Saudi and Russian output and an expected revival in Iranian shipments after the end of sanctions. U.S. crude supplies probably rose by 4 million barrels last week, a Bloomberg survey showed before an Energy Information Administration report.

West Texas Intermediate oil for March delivery rose $1.11 to close at $31.45 a barrel on the New York Mercantile Exchange. The contract retreated 5.8 percent on Monday after the biggest two-day rally in more than seven years. Total volume traded was 30 percent above the 100-day average at 2:50 p.m.

Brent for March settlement advanced $1.30, or 4.3 percent, to $31.80 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at a 35-cent premium to WTI.

Source: Bloomberg

Gold Futures Log Best Closing Price in Nearly 3 Months

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Gold futures on Tuesday posted their best settlement since early November as jitters surrounding the oil market and China helped make the metal more attractive to investors.

February gold rose $14.90, or 1.4%, to settle at $1,120.20 an ounce–its highest settlement price since Nov. 2, according to FactSet data.

The climb came amid a volatile day on the financial markets, with oil sliding below $30 a barrel before staging a rally. Oil’s early decline had helped feed a sharp stock selloff in China, where the Shanghai Composite Index closed 6.4% lower.

Source : Marketwatch

U.S. Stocks Rise Amid Earnings as Energy Shares Rebound With Oil

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U.S. stocks rallied, with the Dow Jones Industrial Average posting its strongest gain in more than seven weeks, amid better-than-forecast earnings from companies ranging from 3M Co. to Coach Inc. while energy shares rebounded with oil after a selloff Monday.

The Standard & Poor’s 500 Index added 1.4 percent to 1,903.62 at 4 p.m. in New York, recovering from a 1.6 percent drop yesterday.

Tuesday’s rally provided a reprieve for the S&P 500, which remains on track for its worst January since 2009 as a plunge in oil prices exacerbated worries that China’s slowdown will weigh on global growth. Better-than-forecast earnings reports and economic data today helped soothe some of those concerns, while Federal Reserve officials gathered in Washington for a two-day policy meeting.

Policy makers are widely expected to leave rates steady, though investors will be scouring Wednesday’s statement for hints officials are backing away from the path of four rate increases in 2016. Signals last week that central banks in Europe and Japan stand ready to boost stimulus to tamp down market volatility fueled a flight to risk assets after equities had the worst two-week start to a year on record.

Source: Bloomberg

Miners Lead Europe Stock Gains While Siemens Surges on Earnings

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A rebound in commodity and energy producers led the advance in European equities, while earnings at Siemens AG and Royal Philips NV further boosted sentiment.

The Stoxx Europe 600 Index climbed 0.9 percent at the close of trading in London. It erased a decline of as much as 2 percent as crude rose above $30 a barrel after Iraq’s oil minister said Saudi Arabia and Russia are now more flexible about cooperating to cut output.

Siemens surged 8.6 percent -- the most since 2008 -- after unexpectedly raising its annual profit forecast, signaling confidence that it can ride out a slowdown in China and drop in oil. Philips jumped 6.1 percent after reporting that quarterly earnings rose more than estimated on growth in medical equipment.

Fluctuations in oil have been weighing on stocks worldwide as the two asset classes have become the most correlated since 2013. Crude’s decline on Monday halted the Stoxx 600’s biggest two-day rebound since 2011, fueled by speculation of more European Central Bank stimulus.

Source: Bloomberg

U.S. Stocks Rally Amid Earnings as Crude Shrugs Off China Slump

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U.S. stocks advanced with commodities from crude to copper as investors looked past another rout in Chinese stocks to focus on corporate earnings and the start of the Federal Reserve’s first policy meeting since turmoil gripped financial markets.

The Standard & Poor’s 500 Index extended gains after data showed an increase in consumer confidence. The Dow Jones Industrial Average jumped more than 200 points as 3M Co. and Procter & Gamble Co. surged after reporting results. Treasuries headed for the best monthly gain in a year on speculation the Fed will signal a patient approach to raising rates. Stocks in Europe climbed as crude topped $31 a barrel in New York.

The S&P 500 climbed 1.1 percent at 12 p.m. in New York, paring the U.S. benchmark gauge’s monthly decline to 7.1 percent. Apple Inc. is among 23 companies from the index posting results on Tuesday.

The index has lost more than 8 percent since the Fed raised borrowing costs last month. The probability of a rate increase this week has stayed low after the December liftoff, and chances the Fed will raise in March have fallen to lower than one-in-four from even odds at the start of the year.

Source: Bloomberg

Aust dollar slumps below US70c

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The Australian dollar is weaker against the US dollar, as the resumed fall in oil and base metal prices weighs.

At 7.25am (AEDT), the local unit was trading at US69.65c, down from US70.17c on Friday.

Oil prices fell more than 5 per cent on concerns of oversupply after news that Iraq’s output reached a record in December.

Source: businessspectator

Oil Drops as Saudis to Maintain Spending, China Diesel Use Falls

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Oil dropped after Saudi Arabia, the world’s biggest crude exporter, said low prices won’t reduce its spending on energy projects and China’s diesel demand fell for a fourth consecutive month.

Futures tumbled 5.8 percent in New York. Saudi Arabian Oil Co., also known as Saudi Aramco, is maintaining its investment plans despite the rout in the crude market, Chairman Khalid Al-Falih said Monday. Diesel use in China dropped 5.6 percent in December compared with a year earlier and gasoline consumption grew at the slowest pace in more than two years.

Oil resumed its decline after the biggest two-day rally in more than seven years as concerns persist over ample U.S. stockpiles, steady production from Saudi Arabia and Russia and the outlook for increasing Iranian shipments after the end of sanctions. Prices may take as long as three years to normalize, according to Bank of Montreal Chief Executive Officer William Downe.

West Texas Intermediate for March delivery dropped $1.85 to close at $30.34 a barrel on the New York Mercantile Exchange. Total volume traded was 28 percent higher than the 100-day averageat 2:57 p.m. Front-month prices rose 21 percent over two sessions at the close Friday after the February contract expired Wednesday at $26.55 a barrel, the lowest since 2003.

Brent for March settlement fell $1.68, or 5.2 percent, to end the session at $30.50 a barrel on the London-based ICE Futures Europe exchange. The contract gained 10 percent to $32.18 Friday. The European benchmark crude closed at a 16-cent premium to WTI.

Source: Bloomberg

U.S. Stocks Fall With Energy Shares Leading as Oil Resumes Slide

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U.S. stocks fell, with declines accelerating in the final hour after crude oil extended its selloff, as equities lost momentum following their first weekly advance this year.

The Standard & Poor’s 500 Index declined 1.6 percent to 1,877.34 at 4 p.m. in New York, erasing three-quarters of a rally Friday that saw the gauge cap the best back-to-back gains in three months. Energy shares in the benchmark fell the most since August.

Equities are on track for their worst January since 2009 amid worries that China’s slowdown will weigh on global growth, with plunging oil prices exacerbating those concerns. The S&P 500 sank to a 21-month low last week, and it’s down 8.2 percent this month.

Stocks rose last week, with energy shares helped by a rebound in crude, on bets central banks around the world will act to support the global economy, even as the Federal Reserve tightens policy. European Central Bank President Mario Draghi said today the ECB must fulfill its inflation mandate in order to maintain its credibility. With slumping oil costs weighing on consumer prices that are already close to stagnating, Draghi is trying to convince investors that the central bank remains willing to act if needed.

Source : Bloomberg

U.S. Stocks Decline as Crude Slump Worsens; Bonds, Gold Advance

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U.S. stocks halted a two-day rally as renewed declines in the price of crude set the tone on global financial markets, dragging down currencies of resource exporters and stoking demand for havens from gold to Treasuries.

The Standard & Poor’s 500 Index followed European shares lower after American crude’s slide approached 5 percent, undoing part of a 21 percent surge in oil to end last week. Emerging-market shares headed for the biggest two-day gain since August on bets that central banks will step up stimulus. Yields on 10-year Treasury notes fell three basis points 2.02 percent. The Russian ruble slid against all of its 31 major counterparts, while gold futures jumped 1 percent.

The S&P 500 fell 0.6 percent at 12:30 p.m. in New York, after a 2 percent rally on Friday. Equities are on track for their worst January since 2009 amid worries that China’s slowdown will weigh on global growth, with plunging oil prices exacerbating those concerns. The S&P 500 sank to a 21-month low last week before rallying.

Halliburton Co. declined Monday after posting a quarterly loss, and Exxon Mobil Corp. slide following crude’s biggest two-day rally in more than seven years. McDonald’s Corp. gained after the fast-food giant’s earnings beat analysts’ forecasts. Tyco International Plc surged 8.6 percent after Johnson Controls Inc. agreed to merge with the company.

Source : Bloomberg

European Stocks Halt Rebound as Banks, Commodity Producers Slide

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Declines in commodity shares and lenders put an end to a rally in European stocks.

The Stoxx Europe 600 Index fell 0.6 percent at the close of trading in London. Seadrill Ltd. led the slide, tumbling 8.9 percent as oil fell after the world’s biggest crude exporter said it’s keeping up investments in energy projects. A gauge of miners also dropped, while lenders slid the most among industry groups.

The rout in commodity prices is once again weighing on risk assets amid concern that China’s slowdown will hurt global growth. After reaching the cheapest valuation in about two years on Wednesday, the Stoxx 600 enjoyed its biggest two-day surge since 2011 on speculation of more stimulus. European Central Bank President Mario Draghi signaled measures could come as soon as March.

Among shares active on corporate news, Kingfisher Plc sank 6.1 percent after Europe’s largest home-improvement retailer said that short-term earnings will suffer from a five-year plan to boost profit.

Source: Bloomberg

Yen Gains as Bullish Bets Reach Four-Year High Before BOJ Meets

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The yen rose the most among its developed-market peers after Bank of Japan Governor Haruhiko Kuroda showed little appetite for an immediate expansion of stimulus before the central bank sets policy on Friday.

Japan’s currency halted a two-day slide after Kuroda said in an interview on Jan. 22 in Davos, Switzerland that “at this stage, we don’t think the current market situation has been affecting corporate behavior unduly.” The yen has gained against all its major counterparts since the start of the year as a China-led stock selloff and a continued tumble in oil prices spurred demand for haven assets. Hedge funds and other large speculators raised net bullish yen positions to the highest in almost four years last week.

The yen added 0.2 percent to 118.50 yen per dollar as of 9:46 a.m. in Tokyo, extending its advance this year to 1.4 percent. It strengthened 0.2 percent to 127.96 per euro.

Source: Bloomberg

WTI Oil Books Best One-Day Gain Since August

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Oil futures rocketed higher on Friday, stretching their rally to a second straight session and marking the best one-day jump since August, according to FactSet data.

March West Texas Intermediate crude finished at $32.19 a barrel on the New York Mercantile Exchange. It rose $2.66, or 9%, for the session. For the week, it gained 9.4% based on Friday's closing level for the February contract, which expired Wednesday.

Source: MarketWatch

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Asia Stocks Extend Global Rebound as Japan, Material Shares Rise

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Asian stocks extended the rally that sent global equities to their biggest gain in 3 1/2 years as Japanese shares and materials companies climbed.

The MSCI Asia Pacific Index added 0.5 percent to 119.07 as of 9:02 a.m. in Tokyo, with materials and health-care shares leading the advance. Japan’s Topix index climbed 1.1 percent as markets across the region extended gains that began after European Central Bank President Mario Draghi signaled it may boost economic support. Bank of Japan Governor Haruhiko Kuroda, who decides on policy on Jan. 29, played down the impact of recent market gyrations on his economy, while traders are predicting the Federal Reserve will hold interest rates when it also meets this week.

A measure of volatility on the MSCI Pacific Gauge climbed to the highest since September last week, while the Shanghai Composite Index swung between gains and losses every trading day. Japan’s Topix surged 5.6 percent on Friday after losing 6.4 percent the previous two days.

The MSCI Asia Pacific Index is still down 9.7 percent this year, while the Shanghai Composite Index has tumbled 18 percent as investors retreat from riskier assets on concerns about China’s economic slowdown and a rout in oil and other commodities.

South Korea’s Kospi index added 0.4 percent on Monday. New Zealand’s benchmark gauge rose 0.7 percent and Australia’s S&P/ASX 200 Index increased 1.1 percent. Markets in China and Hong Kong have yet to start trading. Futures on the Hang Seng and Hang Seng China Enterprises indexes gained 1.3 percent in most recent trading, while contracts on the FTSE China A50 Index futures rose 1.2 percent.

Chinese stocks rallied on Friday as energy producers surged on higher oil prices and after the government signaled it will curb overcapacity in industries such as coal that have been dragging down economic growth. The Shanghai Composite Index rose 1.3 percent, while the Hang Seng China Enterprises Index climbed 3.4 percent.

Futures on the Standard & Poor’s 500 Index slid 0.1 percent on Monday. The U.S. equity benchmark index advanced 2 percent Friday, the most since Dec. 4, while the MSCI All-Country World Index posted its best day since June 2012.

Energy shares advanced in Asia as oil fluctuated near $32 a barrel following the biggest two-day rally in more than seven years.

Source: Bloomberg

Japanese Stocks Advance for Second Day Amid Stimulus Speculation

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Japanese stocks jumped, heading for their biggest two-day gain since November 2014, as speculation central banks will step in to bolster markets continued fueling a recovery in shares.

The Topix index added 1.1 percent to 1,388.99 as of 9:02 a.m. in Tokyo, extending Friday’s 5.6 percent advance and headed for the first back-to-back gain of the year. The Nikkei 225 Stock Average climbed 0.8 percent to 17,087.47. The yen traded at 118.64 per dollar, near its weakest since the first week of January. Oil maintained gains after a two-day rally of 13 percent.

Japanese trade data showed exports dropped 8 percent in December from a year earlier, steeper than estimates for a 7 percent decline. Imports lost 18 percent, compared with expectations for a 16.4 percent drop.

Despite Friday’s rally, the Topix ended last week with a 2 percent loss. Both the Topix and the Nikkei 225 fell into a bear market on Wednesday.

E-mini futures on the Standard & Poor’s 500 Index added less than 0.1 percent after the underlying measure jumped 2 percent Friday, with energy and raw-material companies leading gains to post their first weekly advance this year.

Source: Bloomberg

U.S. Stocks Rally Amid Stimulus Optimism Led by Energy Shares

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The Standard & Poor’s 500 Index capped its strongest two-day rally in three months, amid speculation central banks around the world will act to support the global economy even as the Federal Reserve tightens policy.

The S&P 500 gained 2 percent to 1,906.88 at 4 p.m. in New York, the best back-to-back increase since October after turning positive for the week.

Equities continued a snap-back from the worst start to a year since 2009, hammered as oil sank to 12-year lows amid rising supplies and concern that flagging global growth, particularly in China, will drag on the U.S. economy. Crude rallied Friday to its biggest two-day advance since 2009.

The S&P 500 rebounded yesterday from a 21-month low as European Central Bank President Mario Draghi signaled the potential for more stimulus as early as March. Sentiment also received a boost overnight from speculation that the Bank of Japan is considering additional easing.

The benchmark through Thursday was headed for a fourth weekly decline, and on Wednesday dipped below a level technical analysts call oversold, meaning a selloff has gone too far. A rout stoked by concerns about China’s slowdown and plunging oil wiped off as much as $2.45 trillion from U.S. equities this year.

Source : Bloomberg

Euro Fluctuates as Traders Weigh Draghi's Expanded Easing Hint

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The shared currency erased losses versus the dollar just hours after European Central Bank President Mario Draghi said the central bank may reconsider its policy stance in March amid a deteriorating economic outlook and turmoil in global markets. The euro remained lower versus the currencies of commodity exporters, including Canada, South Africa and Australia, as risk assets rallied.

Policy makers are struggling to lift inflation, a goal of the ECB, as tumbling commodities continue to weigh on consumer prices. Growing concern about a slowdown in China has roiled markets around the world, further complicating the task. While Draghi reiterated that the euro is “not a policy target,” he said the ECB was conscious of the effective exchange rate. Easing typically weakens a currency, which can help stimulate growth and inflation.

The euro fell as much as 1.2 percent, the most since Jan. 8, before trading little changed at $1.0882 as of 2:36 p.m. in New York. The currency lost more than 1 percent versus the Canadian dollar, South African rand and Australian dollar. The euro is up 0.2 percent versus the dollar this year after weakening more than 10 percent during each of the past two years.

Source : Bloomberg

Oil Surges Above $30 on ‘Oversold’ Conditions, Libya Attacks

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Oil futures jumped on Thursday, rebounding on the back of what analysts referred to as “oversold” conditions, as reports of attacks on Libyan oil terminals reminded the market of the risks to supplies in the Middle East.

Advances for oil came despite a hefty increase in weekly U.S. crude inventories. The natural-gas market, meanwhile, mulled their own supply data, which revealed a smaller-than-expected weekly decline.

March West Texas Intermediate crude  picked up $1.60, or 5.7%, to $29.95 a barrel on the New York Mercantile Exchange, briefly touching a high of $30.14. Moves for WTI have come in fits and starts Thursday. It was trading around $28.57 before the supply data and fell initially after the data before surging higher after the Libya news.

March-dated Brent crude the global oil benchmark, jumped $1.62, or 5.9%, to $29.52 a barrel on London’s ICE Futures exchange.

Both benchmarks had fallen to their lowest levels since 2003 on Wednesday.

Source : Marketwatch

Asian Futures Point to Rebound Amid Oil Jump, Stimulus Prospects

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Asia is set to get another shot at a market rebound, with equity-index futures signaling gains from Japan to Hong Kong amid signs Europe and Asia will act to thwart further volatility by increasing stimulus and after crude oil rallied.

Nikkei 225 Stock Average futures jumped in Osaka as gains in U.S. and European stocks burnished sentiment, diminishing the appeal of haven assets like the yen. New Zealand and Australia benchmarks opened higher, with Asian stocks poised to end a third week of losses with a day in the green. The euro held near a two-week low after European Central Bank chief Mario Draghi indicated he may bolster support as soon as March. Base metals rose Thursday, while Treasuries resumed their decline.

A private gauge of Japanese manufacturing is due Friday, along with updates on Thai and Malaysian foreign-currency reserves. Taiwan reports on factory output and jobs.

Source: Bloomberg

U.S. Stocks Rebound as Oil Surges; Treasuries Slip With Gold

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U.S. stocks overcame an afternoon slump to rebound from the lowest level in 21 months, as crude surged toward $30 amid signals from China and Europe that officials will add to stimulus if needed. Treasuries fell with gold as haven demand waned.

The Dow Jones Industrial Average rose 115 points in a seesaw session that had the gauge erase almost all of a 270-point rally before ending higher. Investors piled into risk assets, boosting European equities to the biggest gain in a month and sending crude 4.2 percent higher, after the European Central Bank said it may bolster support as soon as March. China’s vice president said the government would intervene to tamp down market volatility. The yield on the 10-year Treasury note rose to 2.02 percent.

ECB President Mario Draghi signaled at his briefing Thursday that additional support is available as soon as March as distress in China shows few signs of abating and oil’s slump fuels disinflation. Risks to economic growth have increased amid the financial-market turmoil that has erased more than $15 trillion from global equity values as markets from Japan to Germany and Brazil plunged into bear territory.

Crude’s climb above $29 a barrel in New York provided a glimmer of relief to commodities investors battered by an oversupply in resources from oil to copper and wheat. Calling the country’s market “not yet mature,” China’s Vice President Li Yuanchao said the government would boost regulation in an effort to avoid too much volatility. Corporate earnings may also offer clues on the robustness of the U.S. recovery, with the few companies that have reported so far mostly exceeding estimates.

The S&P 500 rose 0.5 percent at 4 p.m. in New York, capping a session that saw it rise as much as 1.6 percent after falling 1.2 percent Wednesday to the lowest since April 2014. The index has swung from gains to losses for seven consecutive sessions as investors seek a bottom to a rout this year that’s erased 8.3 percent from the benchmark.

Energy shares paced gains with a 3.1 percent advance. Chevron Corp. climbed 2.6 percent and Home Depot Inc. surged 3.5 percent as energy and consumer discretionary companies paced the rebound from yesterday’s selloff. Verizon Communications Inc. gained 3.5 percent after its profit beat estimates. Union Pacific Corp. fell 4.9 percent after its earnings missed forecasts.

Source : Bloomberg

U.S. Stocks Rally, Led by Energy Shares Amid Stimulus Prospects

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U.S. stocks rose, with the Standard & Poor’s 500 Index recovering from a 21-month low, as investors weighed the potential for additional stimulus measures amid uncertain prospects for global growth.

Chevron Corp. climbed 2.6 percent and Home Depot Inc. surged 4.2 percent as energy and consumer discretionary companies paced the rebound from yesterday’s selloff. Banks also bounced, with Wells Fargo & Co. up 2 percent. Verizon Communications Inc. gained 3.5 percent after its profit beat estimates. Union Pacific Corp. fell 4.9 percent after its earnings missed forecasts.

The S&P 500 rallied 1.4 percent to 1,885.51 at 12:13 p.m. in New York, after falling 1.2 percent yesterday to the lowest since April 2014. The Dow Jones Industrial Average gained 239.93 points, or 1.5 percent, to 16,006.67, and the Nasdaq Composite Index added 1.2 percent. Trading in S&P 500 shares was 43 percent above the 30-day average for this time of day.

Source: Bloomberg

Gold Climbs as Deepening Equity Losses Spur Safe-Haven Demand

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Gold climbed to the highest in more than a week and investors boosted holdings in bullion-backed funds as global market turmoil spurred demand for a haven.

The metal rose as much as 1.9 percent in New York as commodities dropped and a gauge of world equities teetered on the brink of a bear market. Citigroup Inc. raised its forecast for gold prices this year, while cutting the outlook for crude oil and base metals. The cost of living in the U.S. fell in December and housing starts unexpectedly slumped, government data Wednesday showed.

Gold futures for February delivery gained 1.6 percent to settle at $1,106.20 an ounce at 1:43 p.m. on the Comex in New York, after touching $1,109.90, the highest since Jan. 8. Prices are up 4.3 percent this year, the best performance of 22 raw materials on the Bloomberg Commodity Index.

Gold holdings in exchange-traded products rose for the seventh time in eight sessions on Tuesday, to 1,511.8 metric tons, the highest since Nov. 6, data compiled by Bloomberg show.

Source: Bloomberg

Oil Tumbling Most in Four Months Deepens Gloom for Producers

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Crude sank the most in more than four months, dragging down shares of oil and gas producers to the lowest in almost seven years.

Futures fell as much as 8 percent to the lowest since May 2003. Royal Dutch Shell Plc, the first global major oil company to report fourth-quarter earnings, said Wednesday it expects profit to drop at least 42 percent. Markets could “drown in oversupply,” sending prices even lower as oil demand growth slows and Iran boosts exports, the International Energy Agency said Tuesday.

West Texas Intermediate for February delivery, which expires Wednesday, fell $2.20 to $26.26 a barrel at 1:37 p.m. on the New York Mercantile Exchange. The more-active March future slid $1.76 to $27.81. Total volume traded was 38 percent higher than the 100-day average.

Brent for March settlement slipped $1.33, or 4.6 percent, to $27.43 a barrel on the London-based ICE Futures Europe exchange. The contract traded at a 41-cent discount to WTI for the same month.

Source: Bloomberg

U.S. Stocks Sink With Markets Around the World as Rout Deepens

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U.S. stocks fell, with the Standard & Poor’s 500 Index reaching at 21-month low, following a renewed selloff across stocks worldwide as skepticism about the strength of the global economy intensified.

Equities staged a late-day rally paced by health-care and small-cap shares that briefly erased a drop of 3.7 percent in the Nasdaq Composite Index. The Dow Jones Industrial Average and S&P 500 cut their worst losses by more than half. Energy companies sank further into five-year lows, on pace for their worst monthly slump since 2008 as oil plunged. Chevron Corp. slid 3.1 percent. International Business Machines Corp. fell 4.9 percent after its earnings forecast missed projections.

The Standard & Poor’s 500 Index fell 1.2 percent to 1,859.43 at 4 p.m. in New York, closing at its lowest level since April 2014. The gauge trimmed a slide of more than 3.6 percent.

Global equities’ worst-ever start to a year deepened as oil continued its collapse and a slowdown in China weighs on sentiment. Japanese shares joined benchmark indexes in China and Europe in tumbling into a bear market today. West Texas Intermediate crude futures slumped 6.7 percent to near $26 a barrel.

Source : Bloomberg

U.S. Stocks Sink With Markets Around the World

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U.S. stocks tumbled, with the Dow Jones Industrial Average dropping more than 500 points, following a renewed selloff across stocks worldwide as skepticism about the strength of the global economy intensified.

Commodity shares remained at the forefront of the selloff, with energy companies sinking further into five-year lows and on pace for their worst monthly slump since 2008. Chevron Corp. slid 7.2 percent. International Business Machines Corp. fell 5.5 percent after its earnings forecast missed projections. Banks fell for a third day, with Citigroup Inc. and Bank of America Corp. down more than 5.3 percent.

The Standard & Poor’s 500 Index dropped 3.4 percent to 1,817.60 at 12:34 p.m. in New York, the most in almost five months and on track for its lowest level since April 2014. The Dow lost 521.05 points, or 3.3 percent, to 15,494.97. The Nasdaq Composite Index fell 3.4 percent and the Russell 2000 Index sank 3.5 percent.

Investors are keeping close watch on progress in the economy to gauge the potential pace of future interest-rate increases by the Federal Reserve. The central bank’s next policy meeting concludes a week from today.

Source: Bloomberg

Europe Stocks Fall to 15-Month Low as Oil, Results Stoke Concern

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European stocks slid to a 15-month low as falling oil prices and results from companies including Zurich Insurance Group AG and Royal Dutch Shell Plc exacerbated investor concern about global growth.

Zurich Insurance slid 11 percent after predicting a second straight quarterly loss for its biggest unit. Shell lost 7.3 percent after saying quarterly profit plunged as the slide in oil prices deepened. Seadrill Ltd. plummeted 29 percent as Bank of America Corp. cut its rating to the equivalent of sell. BHP Billiton Ltd. helped drag a gauge of commodity producers to the worst performance on the Stoxx Europe 600 Index, falling 7.4 percent after trimming its full-year iron-ore output forecast. Glencore Plc fell 9.9 percent.

The Stoxx 600 erased Tuesday’s rebound, tumbling 3.2 percent to 322.29 at the close of trading. Concern that a slowdown in China will spread and plunging oil prices have weighed on investor sentiment, dragging the European gauge down 12 percent this year and into a bear market last week. Oil extended its drop from the lowest close in more than 12 years today. The VStoxx Index measuring volatility expectations for euro-area shares jumped 14 percent.

The Stoxx 600 broke below its 200-week moving average at 324.15, hitting its lowest level since December 2014. Still, sentiment is so negative that technical indicators are not enough to trigger a rebound, according to Saxo Bank A/S trader Andrea Tueni.

Source : Bloomberg

Oil Falls to 12-Year Low as IEA Says Supply Could `Drown' Market

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Crude dropped to the lowest in more than 12-years in New York after the International Energy Agency said the global market could “drown in oversupply.”

West Texas Intermediate futures fell 3.3 percent. The IEA cut 2016 estimates for global oil demand as China’s economic growth weakens, and raised forecasts for output outside the Organization of Petroleum Exporting Countries. The removal of restrictions on Iranian crude sales is seen prolonging the supply glut. Brent futures rebounded as data showed Chinese growth was in line with government targets.

Oil is down 23 percent this year amid volatility in Chinese markets and an expected surge in Iranian exports. The International Monetary Fund cut its world growth outlook for 2016 to 3.4 percent from 3.6 percent as the commodities slump and political gridlock push Brazil deeper into recession, plunging oil prices hobble Middle East crude producers, and the rising dollar curbs U.S. prospects.

WTI for February delivery, which expires Wednesday, slipped 96 cents to close at $28.46 a barrel on the New York Mercantile Exchange. It was the lowest settlement since September 2003. The more-active March future decreased 82 cents to $29.57. Monday’s transactions were booked with Tuesday’s because of the Martin Luther King Jr. holiday. Total volume traded was 68 percent higher than the 100-day average at 2:45 p.m.

Brent for March settlement climbed 21 cents, or 0.7 percent, to end the session at $28.76 a barrel on the London-based ICE Futures Europe exchange. The contract fell 1.4 percent to $28.55 on Monday, the lowest close since December 2003. Brent closed at an 81-cent discount to March WTI.

Source : bloomberg