Oil Falls to Two-Week Low as U.S. Stockpiles Seen Nearing Record

---

The euro tumbled Tuesday to its weakest level against the dollar in a month as weak economic data from across the globe helped support the greenback ahead of Friday’s eagerly anticipated U.S. jobs report.

The European shared currency fell to a low of $1.0719, its weakest level since Dec. 3, when it erased a month of losses after the European Central Bank delivered a package of stimulus measures that was less comprehensive than investors had hoped. It trimmed some of its losses to trade at $1.0746 late Tuesday in New York, compared with $1.0826 late Monday in New York.

Adding to the pressure on the shared currency were preliminary data on eurozone inflation, which showed prices in the region rose by only 0.2% in December, a softer rate than economists had expected.

Tumult in China’s markets has also been an important driver of the currency market so far this week. Concerns about slowing growth in China helped support the dollar against the euro, while simultaneously pushing it lower against the yen for a second straight day–despite an effort by Chinese officials to calm jittery markets by injecting 130 billion yuan ($19.9 billion) in short-term funds into the country’s financial system.

The yen strengthened against the dollar, extending Monday’s gains, as investor appetite for currencies perceived haven currencies endured. The dollar fell to ¥119.03, down from ¥119.30 late Monday in New York.

The Chinese yuan rose after the country’s central bank intervened in the foreign-exchange market to prop up its currency. A dollar bought 6.5209 yuan, down from 6.5377 yuan on Monday.

The pound dropped to $1.4668 from $1.4716 Monday.

The ICE Dollar index rose 0.5% to 99.3960, on track to rise a sixth straight session.

Source : Market Watch

Oil Falls to Two-Week Low as U.S. Stockpiles Seen Nearing Record

---

Oil dropped to a two-week low on speculation that a government report will show U.S. crude inventories climbed last week.

Futures tumbled 2.1 percent in New York. Stockpiles probably rose the 13th time in 15 weeks, keeping them more than 130 million barrels above the five-year average, a Bloomberg survey showed. The American Petroleum Institute will release its weekly data today while the Energy Information Administration will report on Wednesday. Supplies at Cushing, Oklahoma, the biggest U.S. storage hub, climbed to a record last month, according to the EIA.

Oil capped the biggest two-year loss on record in 2015 as the Organization of Petroleum Exporting Countries effectively abandoned production limits amid a global supply glut. Investors are assessing the impact of Saudi Arabia’s move to cut ties with Iran, while also watching measures by China to prevent the country’s financial-market volatility from weighing on a slowing economy.

West Texas Intermediate for February delivery fell 79 cents to settle at $35.97 a barrel on the New York Mercantile Exchange. It was the lowest close since Dec. 21. Prices slid 30 percent last year.

Brent for February settlement declined 80 cents, or 2.1 percent, to $36.42 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at 45 cent premium to WTI.

Source : Bloomberg

U.S. Shares Struggle to Rebound From Rout, Close Little Changed

---

U.S. shares closed little changed after China’s move to stabilize its financial markets left investors to focus on the prospects for global growth amid renewed selling in crude oil and weaker-than-expected auto sales.

The Standard & Poor’s 500 Index rose 0.2 percent to 2,016.86 at 4 p.m. in New York, after wavering between gains and losses following the gauge’s 1.5 percent drop on Monday.

Stocks in China rose Tuesday in volatile trading, stabilizing after weaker factory data from the world’s second-largest economy sparked a worldwide selloff on Monday. State-backed funds were said to intervene after yesterday’s 7 percent plunge in the CSI 300 Index of large-capitalization companies listed in Shanghai and Shenzhen wiped out $590 billion of market value. European equities also climbed after a 2.5 percent rout on Monday.

Source : Bloomberg

U.S. Equities Struggle to Rebound Following Year-Opening Selloff

---

U.S. stocks fluctuated with global equities, after China’s move to stabilize its financial markets left investors to focus on the prospects for global growth amid renewed selling in crude and weaker-than-expected auto sales.

An early advance Tuesday withered as declines in General Motors Co. and Ford Motor Co. weighed after their December sales disappointed. Commodity shares slipped with oil. Netflix Inc. fell for a fourth day, down 2.8 percent after finishing 2015 with a 134 percent gain, and Walt Disney Co. declined 2.9 percent. Gunmakers Smith & Wesson Holding Corp. and Sturm Ruger Co. surged more than 6 percent as President Barack Obama unveiled tougher restrictions on arms sales.

The Standard & Poor’s 500 Index fell 0.3 percent to 2,006.70 at 12:09 a.m. in New York, after earlier rising as much as 0.4 percent. The gauge fell 1.5 percent Monday. The Dow Jones Industrial Average lost 86.08 points, or 0.5 percent, to 17,062.86. The Nasdaq Composite Index declined 0.5 percent. Trading in S&P 500 shares was 8 percent above the 30-day average for this time of day.

Stocks in China rose Tuesday in volatile trading, stabilizing after weaker factory data from the world’s second-largest economy sparked a worldwide selloff on Monday. State-backed funds were said to intervene after yesterday’s 7 percent plunge in the CSI 300 Index of large-capitalization companies listed in Shanghai and Shenzhen wiped out $590 billion of market value. European equities also climbed after a 2.5 percent rout on Monday.

Source : Bloomberg

Europe Stocks Advance With Miners After Worst-Ever Start to Year

---

European stocks advanced, recovering some of the session’s earlier gains, after yesterday’s worst start to a year.

Commodity producers posted the biggest gains among Stoxx Europe 600 Index groups. Glencore Plc and ArcelorMittal added at least 3.5 percent, helping send the regional benchmark up 0.6 percent at the close of trading. It rallied as much as 1.1 percent in the first ten minutes of trading, and then fell as much as 0.5 percent in intraday trading.

The Stoxx 600 tumbled the most in a month yesterday as a selloff in China reignited concern that a slowdown there will hamper global recovery. A gauge of miners advanced 1.8 percent today, rebounding from their biggest drop in almost four weeks. Germany’s DAX Index added 0.3 percent, after its worst decline since August.

Among shares active on corporate news, Home Retail Group Plc surged 41 percent, the most on record, after J Sainsbury Plc said it approached the company regarding a possible offer and was rejected. Sainsbury fell 5.2 percent after briefly rising 8.1 percent after the announcement.

Source: Bloomberg