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