Crude Oil Rises From 12-Year Lows as Traders Assess Market Rout

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Crude oil advanced as investors reassessed the reasons for a drop in futures to a 12-year low.

Oil rose more than 2 percent in New York and London. Global benchmark Brent rebounded after sliding below $30 a barrel Wednesday for the first time since April 2004 amid speculation sanctions on Iran may be lifted by next Monday, paving the way for increased shipments. U.S. equities rose Thursday after the biggest selloff in three months.

Brent capped a third annual loss in 2015 as the Organization of Petroleum Exporting Countries effectively abandoned production limits amid a global surplus. Iran is trying to regain its lost market share and doesn’t intend to pressure prices, officials from its petroleum ministry and national oil company said this month. U.S. gasoline supplies logged the biggest two-week gain on record, according to U.S. government data on Wednesday.

WTI for February delivery climbed 72 cents to settle at $31.20 a barrel on the New York Mercantile Exchange. Prices slid below $30 Tuesday for the first time since December 2003. Total volume traded was 71 percent above the 100-day average at 2:40 a.m.

Source: Bloomberg

Gold books biggest one-day loss in a month

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Gold futures settled lower on Thursday, suffering from their largest one-day dollar and percentage declines since mid-December as a climb in U.S. equities helped to dull the metal’s investment appeal.

February gold fell $13.50, or 1.2%, to settle at $1,073.60 an ounce. That was its lowest settlement since Jan. 5 and the largest dollar and percentage losses since Dec. 17. Prices finished higher Wednesday as U.S. stocks were driven down to lows not seen since August.

Gold prices turned lower Thursday after Wall Street stocks rebounded from early losses. The Dow Jones Industrial Average was up roughly 1.6% and the S&P 500 was up about 1.8% when gold prices settled.

Some gold watchers blamed gold’s decline on investors consolidating profits after the yellow metal has risen steadily in 2016 as concerns about sluggish global growth and geopolitical tensions has fueled haven buying.

Source: Marketwatch

U.S. Stocks Rally From 3-Month Lows as Energy, Health-Care Lead

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Energy and health-care shares led a rebound in U.S. stocks, as the Standard & Poor’s 500 Index followed the steepest selloff since September with its strongest gain in a month, and the Dow Jones Industrial Average rallied more than 220 points.

The S&P 500 rose 1.7 percent to 1,921.64 at 4 p.m. in New York, trimming in the final hour of trading a gain of as much as 2.3 percent.

The recovery accelerated earlier while Federal Reserve Bank of St. Louis President James Bullard answered questions from reporters following a speech in which the policy maker, who was a vocal proponent of raising interest rates, sounded a more cautious tone. He said the latest decline in oil prices may delay the return of inflation to the central bank’s 2 percent target.

Source: Bloomberg

U.S. Stocks Rally From 3-Month Lows as Energy, Health-Care Lead

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U.S. stocks surged from three-month lows as energy and health-care shares paced a rebound, with the Standard & Poor’s 500 Index recovering after the steepest selloff since September.

Equities spiked higher, reversing an early drop that sent the Nasdaq Composite Index toward a 14-month low. Energy companies jumped as crude rallied, with Exxon Mobil Corp. and Chevron Corp. gaining more than 4.3 percent. JPMorgan Chase & Co. added 2.6 percent after its quarterly profit beat estimates amid lower expenses. Merck & Co. and Pfizer Inc. increased at least 2.5 percent to pace health-care’s rise.

The S&P 500 rose 1.4 percent to 1,916.95 at 12:46 p.m. in New York, after wiping out a drop in early whipsaw trading. The Nasdaq Composite Index reversed a slide of 1.2 percent to climbed 1.5 percent. The Dow Jones Industrial Average gained 226.58 points, or 1.4 percent, to 16,377.99. The Russell 2000 Index increased 1.1 percent after sliding into a bear market Wednesday. Trading in S&P 500 companies was 49 percent above the 30-day average for this time of the day.

The recovery accelerated earlier while Federal Reserve Bank of St. Louis President James Bullard answered questions from reporters following a speech in which the policy maker, who was a vocal proponent of raising interest rates, sounded a more cautious tone. He said the latest decline in oil prices may delay the return of inflation to the central bank’s 2 percent target.

Source: Bloomberg

Europe Stocks Resume Declines as Global-Growth Worry Not Abated

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European stocks fell, snapping a two-day rebound, amid renewed concern about global-growth prospects.

The Stoxx Europe 600 Index declined 1.5 percent at the close of trading. It pared a drop of as much as 3.3 percent as energy producers reversed losses, following oil prices higher. Europe’s benchmark has still tumbled 18 percent since an April high, inching closer to the common definition of a bear market.

Stocks are falling in 2016 on concern China’s slowdown may be worse than expected and as oil slumped further. A rally in Europe yesterday weakened heading into the close, signaling investors lack the conviction to drive a rebound after stocks’ worst-ever start to a year. Prospects for global profit growth are also worsening, with analysts cutting forecasts by the most since 2009, according to a Citigroup Inc. index.

Source: Bloomberg