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