Crude Oil Extends Declined as Iran Spurns Production Freeze Accord

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Oil dropped for a second day as Iran bolstered crude exports and Russia signaled the Persian Gulf nation won’t join major producers in freezing output to reduce a global glut.

Futures fell 2.3 percent in New York adding to Monday’s 3.4 percent decline. Iran has “reasonable arguments” for not joining an alliance to cap output now, Russian Energy Minister Alexander Novak said after meeting with his Iranian counterpart. Iranian production climbed last month by the most in almost two decades following the end of sanctions, OPEC said on Monday. U.S. supplies probably rose last week, keeping stockpiles at the highest since 1930.

Oil has rebounded after slumping to a 12-year low this year on speculation stronger demand and falling U.S. output will ease a surplus. Talks on the freeze are most likely to occur in Qatar’s capital Doha next month, according to Gulf Organization of Petroleum Exporting Countries delegates.

West Texas Intermediate oil for April delivery dropped 84 cents to close at $36.34 a barrel on the New York Mercantile Exchange. It’s the lowest settlement since March 4.

Brent for May settlement declined 79 cents, or 2 percent, to $38.74 a barrel on the London-based ICE Futures Europe exchange. The global benchmark closed at a 66-cent premium to WTI for May delivery.

Source : Bloomberg

Gold Falls a Third Day as Market Awaits U.S. Fed’s Policy Views

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Gold futures had the biggest three-day loss since early November as the dollar climbed and traders increased bets that the Federal Reserve will tighten U.S. monetary policy this year.

The Bloomberg Dollar Spot Index gained for a second day, reducing the appeal of commodities including gold that are priced in the U.S. currency. Traders are betting there’s a 52 percent chance that U.S. policy makers will raise interest rates by June, up from 6 percent a month ago, according to Fed-fund futures.

Greater stability in financial markets after monetary intervention by central banks could ease the Fed’s path to raising rates, hurting gold prices because the metal doesn’t pay interest. While the Bank of Japan refrained from bolstering monetary stimulus at its meeting Tuesday after a surprise move to adopt negative rates in January, it reiterated it could loosen policy if needed. The European Central Bank last week announced unprecedented easing.

Gold futures for April delivery fell 1.1 percent to settle at $1,231 an ounce at 1:48 p.m. on the Comex in New York, taking losses in the past three sessions to 3.3 percent, the biggest such decline for a most-active contract since Nov. 2.

Source : Bloomberg

Hong Kong shares slip on profit-taking after Monday gains

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Hong Kong shares finished down on Tuesday as investors took profits following the previous day's rally.

The Hang Seng index fell 0.7 percent, to 20,288.77, while the China Enterprises Index lost 0.9 percent, to 8,605.63 points.

Total trading volume of companies included in the HSI index was 1.2 billion shares.

The Hang Seng was up 1.2 percent on Monday, in the wake of mainland indices which were up nearly 3 percent in Monday morning trade after regulator comments over the weekend indicated it was premature to consider withdrawing government rescue funds from the market.

Source: reuters

U.S. Stocks Fall Amid Focus on Central Banks as Fed Gathers

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U.S. stocks slipped in light trading, with the Standard & Poor’s 500 Index posting back-to-back declines for the first time this month, as investors considered the capacity of central banks to boost global growth.

The complexion of Tuesday’s retreat mirrored yesterday’s results, with commodity companies among the biggest losers, joined again by health-care and financial shares. Valeant Pharmaceuticals International Inc. plunged 51 percent after cutting its profit forecast. Apple Inc. added 2 percent amid positive analyst comments on iPhone sales, while baby formula maker Mead Johnson Nutrition Co. surged 11 percent on deal speculation.

The S&P 500 declined 0.2 percent to 2,015.91 at 4 p.m. in New York, trimming an earlier 0.7 percent slide.

U.S. equities retreated with shares in Asia and Europe after the Bank of Japan refrained from adding more stimulus. Central banks around the world have indicated a willingness to continue measures to support economic growth and stabilize markets, helping stocks rebound in the past month. The Federal Reserve kicked off a two-day policy meeting today, with investors tempering their trading before the outcome Wednesday afternoon.

Traders are pricing in little chance of a rate increase, though bets for a boost later in the year have risen. The probability of a June move is now seen at almost 54 percent, from 2 percent a month ago.

Source : Bloomberg

Europe Stocks Snap 2-Day Gain as Anglo American Leads Miner Drop

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Declines in commodity and energy producers dragged down European stocks from a two-month high, after the Bank of Japan refrained from boosting its record monetary stimulus.

Anglo American Plc tumbled 11 percent. Antofagasta Plc slid 4.5 percent, paring losses of as much as 11 percent, after abandoning its dividend and saying annual profit slumped 99 percent. A gauge of energy shares tracked crude lower, with Tullow Oil Plc and Seadrill Ltd. down more than 9.5 percent.

The Stoxx Europe 600 Index dropped 1.1 percent at the close of trading. The benchmark yesterday capped its biggest two-day rally in three weeks as investors reassessed the European Central Bank’s stimulus package. Asian shares fell today after the BOJ kept its negative policy rate and asset-purchase plans unchanged, while Federal Reserve and Bank of England decisions are also due this week.

Source : Bloomberg