Gold Rallies in Longest Run Since 2011 as Equities, Dollar Slip

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Gold for immediate delivery rebounded, heading for the longest rally in more than four years, as reeling equity markets and a declining dollar boosted demand for the metal as an alternative asset.

U.S. stocks declined, with the Standard & Poor’s 500 Index near the lowest since April 2014, as energy shares extended losses. The dollar fell for a second straight day against a basket of 10 currencies. Bullion, which topped $1,200 an ounce on Monday for the first time since June, was down as much as 0.3 percent earlier after Goldman Sachs Group Inc. predicted recent gains won’t last.

Gold has climbed 12 percent in 2016 in its best start since 1980, as mounting concerns over global economic growth boost demand for haven assets and spur speculation that the Federal Reserve will hold off on raising U.S. interest rates this year. Fed Chair Janet Yellen is scheduled to appear before the U.S. House Financial Services Committee on Wednesday, and will address the Senate Banking Committee the next day.

Gold for immediate delivery climbed 0.2 percent to $1,191.43 an ounce at 2:50 p.m. in New York. The metal headed for an eighth straight gain, the longest rally since July 2011. Gold futures for April delivery gained 0.1 percent to settle at $1,198.60 on the Comex in New York, a fifth straight gain.

Source: Bloomberg

Brent Oil Falls Most in 5 Months on Glut as Volatility Surges

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Crude tumbled the most in five months in London as price volatility climbed to a seven-year high and Goldman Sachs Group Inc. warned of wider swings to come.

Brent futures fell 7.8 percent as global equities neared a bear market. Volatility is set to “spike” as prices seek an equilibrium, which could drag oil below $20 a barrel, Goldman Sachs said. The CBOE Crude Oil Volatility Index, which measures expectations of price swings, rose as high as 73.52, almost the highest since 2009. The world oil surplus will be bigger in the first half of this year than previously estimated, according to the International Energy Agency.

Oil is down about 25 percent in New York this year on speculation a global glut will persist amid the outlook for increased exports from Iran after the removal of sanctions and brimming U.S. crude supplies. Futures dropped to a 12-year low of $26.19 in January. U.S. crude inventories rose above 500 million barrels to the highest since 1930 in the week ended Jan. 29.

Brent for April settlement dropped $2.56 to $30.32 a barrel on the London-based ICE Futures Europe exchange. It was the biggest decline since Sept. 1. The European benchmark crude closed at a 58-cent premium to West Texas Intermediate oil for April delivery.

WTI for March delivery slipped $1.75 to settle at $27.94 a barrel on the New York Mercantile Exchange. It was the lowest close since Jan. 20. Total volume traded was 58 percent higher than the 100-day average.

Source : Bloomberg

U.S. Stocks Slip, Nasdaq Composite Edges Closer to Bear Market

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U.S. stocks slipped, with the Standard & Poor’s 500 Index holding near its lowest since April 2014 while the Nasdaq Composite Index edged closer to a bear market, amid declines in energy and technology shares.

Equity markets are attempting to stabilize after the Nasdaq Composite Index’s worst two-day selloff since August, and an early drop Tuesday that brought it within 1 percent of a bear market. Whipsaw moves in technology, consumer, health-care and industrial companies sent stocks careening between gains and losses throughout the session. Raw-material companies rallied amid weakness in the dollar, while energy sank with oil prices.

The S&P 500 slipped 0.1 percent to 1,852.36 at 4 p.m. in New York, after erasing an early 1 percent loss and climbing as much as 0.8 percent. The Nasdaq Composite Index fell 0.4 percent after lurching between gains and losses.

Source : Bloomberg

U.S. Stocks Fluctuate With S&P 500 Lingering Near 22-Month Low

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U.S. stocks fluctuated, with the Standard & Poor’s 500 Index near the lowest since April 2014, as energy shares retreated while industrial and raw-material companies erased earlier declines.

Equity markets are attempting to stabilize after the Nasdaq Composite Index’s worst two-day selloff since August and an early drop Tuesday brought it within 1 percent of a bear market. Technology shares were little changed after erasing a 1.2 percent drop, while raw-material and industrial companies advanced amid weakness in the dollar. Chevron Corp. lost 2.6 percent to pace declines in energy while banks struggled to advance.

The S&P 500 fell 0.3 percent to 1,848.76 at 12:10 p.m. in New York, after wiping out an opening drop of 1 percent. The Nasdaq Composite Index slipped 0.2 percent, after lurching between gains and losses. The Dow Jones Industrial Average fell 52.67 points, or 0.3 percent, to 15,974.38.

Source: Bloomberg

European Stocks Retreat to Lowest Since 2013 as Banks Tumble

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European stocks tumbled for a seventh day and a gauge of banks slid to its lowest level since 2012 as the global equity rout sparked by investor worries over the economic recovery showed no signs of abating.

Greece’s Eurobank Ergasias SA led lenders lower, sliding 12 percent, as the cost of insuring financial debt rose amid concern over whether banks are strong enough to cope with a downturn. Credit Suisse Group AG lost 8.4 percent after the Swiss National Bank said it could reduce its negative deposit rate further. Deutsche Bank AG reversed gains, falling 4.3 percent to its lowest price since at least 1992 even as it reassured investors that it has enough cash to pay its debts.

The Stoxx Europe 600 Index dropped 1.6 percent to 309.39 at the close of trading, its lowest level since October 2013, sending it into so-called “oversold” territory. The volume of shares changing hands was 52 percent higher than the 30-day average. A gauge tracking stock swings rose to its highest in three weeks and has jumped 53 percent this year. Greece’s ASE Index slid to its lowest since at least 1989.

Global equities have been battered in volatile trading amid investor concern over oil prices, earnings and the strength of the U.S. and Chinese economies, with the MSCI’s All-Country World Index approaching a bear market. The Stoxx 600 now trades at 13.6 times estimated earnings, about 22 percent below its April 2015 peak.

Source : Bloomberg