Oil Sinks Under $32 For The First Time in More Than 12 Years

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U.S. oil futures fell under $32 a barrel on Monday for the first time since December 2003, with concerns over an economic slowdown in China and expectations that oil from Iran will soon hit the market setting prices up for a sixth straight session decline.

February West Texas Intermediate crude shed $1.51, or 4.5%, to $31.65 a barrel on the New York Mercantile Exchange, following a drop of more than 10% last week. Prices on Nymex haven’t settled under $32 since December 2003, according to FactSet data, tracking the most-active contracts.

February Brent crude, the global crude benchmark was $1.60, or 4.7%, at $31.95 a barrel on London’s ICE Futures exchange.

Source: MarketWatch

Gold down a second straight session, ends under $1,100

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Gold futures settled lower for a second straight session on Monday as prices failed at an earlier attempt to reclaim the $1,100-an-ounce level after climbing by nearly 4% last week.

February gold fell $1.70, or almost 0.2%, to settle at $1,096.20 an ounce after trading as high as $1,108.30. Prices had registered a gain of 3.6% last week, representing the best weekly gain since Aug. 21, 2015, according to FactSet data.

Meanwhile, for industrial metals, concern about a slowdown in China – the world’s second-largest economy and the largest importer of metals – has been a major headwind.

Copper ended at its lowest level since 2009, with March copper losing 5 cents, or 2.5%, to $1.973 an ounce.

April platinum finished down $32.40, or 3.7%, at $846.30 an ounce, while March palladium PAH6, -3.36%  shed $19.30, or 3.9%, to $474.30 an ounce.

Source: MarketWatch

U.S. Stocks Rally as Consumer Shares Offset Oil, China Selloffs

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U.S stocks rose in the last 30 minutes of trading, ending a volatile session higher as gains in consumer and technology shares overshadowed lingering concern over China that continued to fuel a rout in commodities. Treasuries retreated.

The Standard and Poor’s 500 Index ended Monday up 0.1 percent, after sliding to within two points of the 1,900 level earlier in the session. The Russell 2000 Index of smaller companies dropped 0.4 percent, after sinking to a level that marked a bear market. The U.S. gains came after losses in Europe and Asia amid a slump of more than 5 percent in China’s Shanghai Composite Index. Risk aversion maintained its grip on currency markets, with South Africa’s rand tumbling to a record low as oil extended its slide and copper fell.

The S&P 500 closed at 1,923.67 as of 4 p.m. in New York, as consumer staples and discretionary stocks, as well as phone and technology companies, drove gains. Last week, the index capped record slide over five days to begin a year amid a worldwide selloff sparked by concern that China’s slowdown is worse than anticipated. Even data showing resilience in the U.S. labor market couldn’t halt losses for the benchmark on Friday.

Freeport-McMoRan Inc. sank 20 percent to the lowest level in 15 years, while energy producers plunged 2.1 percent as a group. Health-care shares also retreated, with biotechnology firms leading losses.

U.S. aluminum producer Alcoa unofficially got the the U.S. reporting season under way just as markets closed, reporting better-than-expected fourth-quarter earnings amid resurgent demand for components made from the metal. Alcoa’s shares rose 1.4 percent in extended trading.

JPMorgan Chase & Co., Intel Corp. and Citigroup Inc. are among 11 companies scheduled to post their quarterly results this week. Analysts estimate profits for S&P 500 members fell 6.7 percent last quarter.

After a day of fluctuations, European stocks closed at their lowest levels since September. The Stoxx Europe 600 Index erased its gain in the final hour of trading, falling 0.3 percent as commodity producers reversed advances. The MSCI Asia Pacific excluding Japan Index slid 1.9 percent, with markets in Tokyo closed for a holiday.

Source: Bloomberg

U.S. Stocks Fluctuate as Commodities Resume Selloff; Bonds Fall

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U.S stocks fluctuated, after attempts to stabilize faltered as renewed weakness in China rekindled a rout in commodities from oil to copper. Government bonds fell with the yen.

The Standard and Poor’s 500 Index swung between gains and losses after the worst start to a year on record. European shares ended lower after a tumultuous session. The Shanghai Composite Index tumbled more than 5 percent, South Africa’s rand fell to a record low, oil extended its slide to a 12-year low and copper declined. Treasuries halted a seven-day advance.

Equities in Europe and the U.S. sought to end week-long selloffs as a strengthening of the yuan provided some relief to concern that the weakness in the Chinese currency would spark turmoil in the economies of its major trading partners. Markets still stumbled as selling in resources worsened, with the Bloomberg Commodity Index down 2.2 percent. Investors await an indication of whether slowing global growth hurt profits last quarter as Alcoa Inc. begins the reporting season after U.S. markets close.

The S&P 500 slipped 0.4 percent at 1:02 p.m. in New York, after rising as much as 0.7 percent earlier. The index capped its steepest ever slide over five days to begin a year amid a worldwide rout sparked by worries that China’s slowdown is worse than anticipated. Even data showing resilience in the U.S. labor market couldn’t halt losses for the benchmark on Friday.

Source: Bloomberg

European Stocks Erase Advances in Final Hour as Miners Decline

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After a day of fluctuations, European stocks finally closed at their lowest levels since September, extending losses after their worst weekly plunge in more than four years.

The Stoxx Europe 600 Index erased its gain in the final hour of trading, falling 0.3 percent at the close as commodity producers reversed advances. Germany’s DAX Index, which heavily relies on exporters and was among the worst developed markets last week, slipped 0.3 percent, after earlier climbing as much as 1.3 percent.

European equities tumbled last week as concern took over that China’s slowdown will hurt the global recovery, even with the European Central Bank’s stimulus supporting the region. After its worst-ever start to a year ever, the Stoxx 600 went on to fall three more days, ending with a 6.7 percent weekly plunge -- a bigger slump than the Standard & Poor’s 500 Index and the MSCI Asia Pacific Index. With China being Germany’s third-biggest trade partner, the DAX tumbled 8.3 percent.

Source: Bloomberg