Oil Falls From Three-Month High as Iran Refuses to Join Freeze

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Oil dropped from a three-month high as Iran said it would raise output to pre-sanctions levels before joining talks to freeze production.

Futures fell 3.4 percent in New York. Iran plans to raise output by about a third to 4 million barrels a day before it will consider joining any move to rebalance the market, the Iranian Students News Agency reported, citing Oil Minister Bijan Namdar Zanganeh. The Islamic republic boosted production by 187,800 barrels a day in February, the biggest monthly gain since 1997, the Organization of Petroleum Exporting Countries said in a monthly report.

Oil has rebounded after slumping to a 12-year low in February on speculation stronger demand and falling U.S. output will ease a surplus. The International Energy Agency said March 11 that prices may have reached their lowest point as shrinking supplies outside the OPEC and disruptions inside the group reduce the glut. U.S. crude supplies, meanwhile, grew to the highest level since 1930.

West Texas Intermediate for April delivery fell $1.32 to settle at $37.18 a barrel on the New York Mercantile Exchange. The contract climbed 1.7 percent to $38.50 on Friday, the highest close since Dec. 4.

Brent for May settlement slipped 86 cents, or 2.1 percent, to $39.53 a barrel on the London-based ICE Futures Europe exchange. The European benchmark grade closed at a 69-cent premium to WTI for May delivery.

Source : Bloomberg

Gold Futures Slide as Dollar Gains Amid Improving U.S. Outlook

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Gold futures fell for the fifth time in six sessions as the dollar strengthened amid signs of an improving U.S. economic outlook, diminishing demand for the metal as a store of value.

The Bloomberg Dollar Index rebounded from the weakest since October. Traders are pricing in a 52 percent chance that the Federal Reserve will raise rates by June, up from 6 percent a month ago, according to Fed fund futures data compiled by Bloomberg. Higher rates hurt demand for gold, which becomes less competitive against interest-bearing assets.

Bullion has risen 17 percent this year as concerns that a slowdown on China would spread globally boosted the metal’s appeal as a haven. Traders are reassessing Fed rate expectations amid improvements in hiring and manufacturing in the U.S. Citigroup Inc.’s Economic Surprise Index, which measures data performance relative to market expectations, rose to the highest in almost four months.

Gold futures for April delivery slid 1.1 percent to settle at $1,245.10 an ounce at 1:41 p.m. on the Comex in New York. Prices fell for a third straight year in 2015, as investors awaited the first increase in borrowing costs in almost a decade, which came in December.

Source : Bloomberg

Hong Kong shares rise on global strength, mainland rally

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Hong Kong stocks rose more than 1 percent on Monday, aided by sharp gains in mainland shares and a rally in global markets as oil prices climbed further.

The Hang Seng index rose 1.2 percent, to 20,435.34, while the China Enterprises Index gained 1.5 percent, to 8,686.27 points

Most sectors rose, with the property sector up over 2 percent.

China Vanke Co Ltd surged 10 percent to a two-month high, after the Chinese developer said its 2015 core profit grew 13 percent to a record, and that it would buy assets of state-owned Shenzhen Metro Group via a share placement.

Source: Reuters

S&P 500 Little Changed Before Central-Bank Meetings This Week

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U.S stock closed little changed in light trading, near the highest levels this year, as investors awaited further assurances that central banks will continue to support growth.

Gains in consumer shares, including Amazon.com Inc., Starbucks Corp. and Walt Disney Co., offset declines in energy and raw-materials companies, with commodity shares lagging Monday as crude oil fell. Starwood Hotels & Resorts Worldwide Inc. added 7.9 percent after an unsolicited takeover offer from a group of companies led by by China’s Anbang Insurance Group Co.

The Standard & Poor’s 500 Index fell 0.1 percent to 2,019.58 at 4 p.m. in New York, closing above its average price during the past 200 days for a second session.

The Federal Reserve’s two-day meeting this week will be in focus for indications on the trajectory of interest rates, after equities on Friday surged in the wake of additional stimulus steps from the European Central Bank. The Bank of Japan concludes a policy review Tuesday, while the Bank of England has a rate decision Thursday. Central banks have indicated a willingness to continue measures to boost growth and stabilize markets, helping buttress a comeback for U.S. stocks in the past month.

Source : Bloomberg

European Stocks Log Second Straight Win, But Oil Shares Lag

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European stocks pushed higher, led by miners, on Monday, while the broader market continued to welcome last week’s boost in stimulus from the European Central Bank.

The Stoxx Europe 600 gained 0.7% to close at 344.66, with only the oil and gas sector failing to gain ground. The pan-European index on Friday leapt 2.6% in the wake of the ECB’s expanded plans to boost sagging inflation in the eurozone. Monday’s win marked the index’s second in a row.

Among top advancers, Anglo American bounced up 6%, Glencore climbed 4.4%, and Boliden advanced 1.8% largely because the market read a slowdown in industrial production in China–a key buyer of Europe’s industrial and precious metals–as an impetus for more stimulus from Beijing.

Source : Marketwatch