Wednesday, 21 October, 2015
Commodities Fall With Emerging Markets on Global Trade Concerns
(Bloomberg) — Oil and industrial metals retreated with emerging markets on signs a slump in global trade is deepening.
Shares advanced.
The Bloomberg Commodity Index slipped 0.4 percent, as aluminum dropped for a sixth day. The Shanghai Composite Index tumbled the most in a month amid speculation a recent rally was overdone. European shares and U.S. stock index futures rose, while Credit Suisse Group AG dropped after announcing a rights issue. Commodity-related currencies declined, including the Russian ruble, ringgit and South African rand.
“There are still a lot of jitters around global growth,”
said Dirk Thiels, the Brussels-based head of investment management at KBC Asset Management, which oversees 204 billion euros ($232 billion) in assets. “We would need some comforting economic figures out of Asia and emerging markets to support investor sentiment. That will be a difficult one.”
Japanese imports fell the most in six months, data showed Wednesday, echoing similarly weak data from China and Germany and adding to signs that demand is ebbing in three of the world’s largest economies. U.S. crude stockpiles, already about
100 million barrels above the five-year seasonal average, probably expanded for a fourth week as production outstripped demand, analyst said before a report on Wednesday.
Stocks
The Stoxx Europe 600 Index rose 0.3 percent as of 6:16 a.m.
in New York. Standard & Poor’s 500 Index E-mini futures expiring in December rose 0.5 percent.
Credit Suisse lost as much as 5.2 percent after saying it will raise about 6.05 billion Swiss francs ($6.3 billion) of capital. The bank’s reorganization will also increase its focus on Switzerland and wealth management in Asia, while scaling back the securities unit.
Chipotle Mexican Grill Inc. declined about 8 percent in early New York trading after the restaurant chain posted profit that missed analysts’ estimates. Boeing Co., Coca-Cola Co., General Motors Co. and EBay Inc. are among 31 S&P 500 companies reporting earnings today.
Japan’s Topix index rose 1.8 percent, closing at a seven- week high, as speculation grew that the central bank will boost monetary easing after the weaker-than-expected trade data.
Currencies
The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, was little changed. The Fed is due to review monetary policy next week in its penultimate meeting for 2015, with odds on a rate increase not rising above 50 percent until March 2016.
The Canadian dollar slid 0.2 percent before the nation’s central bank announces its latest policy decision. New Zealand and Australia’s dollars also dropped, alongside decline for commodities.
The euro was little changed at $1.1352. It rose 0.2 percent last session after a report from the European Central Bank indicated continued improvement in lending conditions. That may suggest officials can hold off from extending asset purchases.
Bonds
Yields on benchmark 10-year Treasuries fell three basis points to 2.04 percent. They have hovered near 2 percent since the start of the month. A gauge of U.S. sovereign bond market volatility dropped to 71 basis points this week, from 95 basis points as recently as August, as futures traders predict the Fed will be sidelined until March.
The yield on 10-year German bunds slid three basis points to 0.59 percent. Portuguese government bonds declined after Socialist opposition leader Antonio Costa said he can form a stable government backed by a majority in parliament, increasing investor uncertainty about who will lead the nation. The 10-year yield rose two basis points to 2.44 percent.
About 17 billion euros of bonds sold in Europe yesterday, including corporate issuance, making it the busiest day in the syndicated market since Feb. 10, according to data compiled by Bloomberg.
Emerging Nations
A Bloomberg index of 20 emerging-market currencies slid for a fourth day, the longest such streak since Sept. 23. The ruble fell about 0.8 percent and South Africa’s rand dropped 0.7 percent on the commodity decline. The ringgit fell 0.4 percent.
Malaysia is Asia’s only major net oil exporter.
The MSCI Emerging Markets Index lost 0.5 percent, sliding for a second day. The Shanghai Composite fell 3.1 percent, the most since Sept. 15, led by smaller companies. Hong Kong’s market was closed for a holiday. Turkish shares fell 0.8 percent and Saudi Arabia had a 2.2 percent decline.
Commodities
West Texas Intermediate crude fell 1.2 percent to $45.72 a barrel and Brent lost 0.6 percent to $48.42. U.S. crude inventories probably grew by 3.75 million barrels last week, following a 7.56 million expansion the prior period, according to a Bloomberg survey before an Energy Information Administration report Wednesday.
Representatives of the Organization of Petroleum Exporting Countries and producers outside the group are meeting in Vienna.
Venezuela will present evidence that oil at $88 a barrel is required to guarantee investments, President Nicolas Maduro said on state television Wednesday.
Aluminum fell 1.6 percent in London to $1,521.00 a metric ton, a sixth day of decline and the longest retreat in three months. Copper dropped 0.3 percent and nickel fell 0.7 percent.
Gold was little changed at $1,175.26 an ounce as investors await next week’s meeting of Federal Reserve policy makers for clues on the timing of a U.S. rate increase.
Shares advanced.
The Bloomberg Commodity Index slipped 0.4 percent, as aluminum dropped for a sixth day. The Shanghai Composite Index tumbled the most in a month amid speculation a recent rally was overdone. European shares and U.S. stock index futures rose, while Credit Suisse Group AG dropped after announcing a rights issue. Commodity-related currencies declined, including the Russian ruble, ringgit and South African rand.
“There are still a lot of jitters around global growth,”
said Dirk Thiels, the Brussels-based head of investment management at KBC Asset Management, which oversees 204 billion euros ($232 billion) in assets. “We would need some comforting economic figures out of Asia and emerging markets to support investor sentiment. That will be a difficult one.”
Japanese imports fell the most in six months, data showed Wednesday, echoing similarly weak data from China and Germany and adding to signs that demand is ebbing in three of the world’s largest economies. U.S. crude stockpiles, already about
100 million barrels above the five-year seasonal average, probably expanded for a fourth week as production outstripped demand, analyst said before a report on Wednesday.
Stocks
The Stoxx Europe 600 Index rose 0.3 percent as of 6:16 a.m.
in New York. Standard & Poor’s 500 Index E-mini futures expiring in December rose 0.5 percent.
Credit Suisse lost as much as 5.2 percent after saying it will raise about 6.05 billion Swiss francs ($6.3 billion) of capital. The bank’s reorganization will also increase its focus on Switzerland and wealth management in Asia, while scaling back the securities unit.
Chipotle Mexican Grill Inc. declined about 8 percent in early New York trading after the restaurant chain posted profit that missed analysts’ estimates. Boeing Co., Coca-Cola Co., General Motors Co. and EBay Inc. are among 31 S&P 500 companies reporting earnings today.
Japan’s Topix index rose 1.8 percent, closing at a seven- week high, as speculation grew that the central bank will boost monetary easing after the weaker-than-expected trade data.
Currencies
The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, was little changed. The Fed is due to review monetary policy next week in its penultimate meeting for 2015, with odds on a rate increase not rising above 50 percent until March 2016.
The Canadian dollar slid 0.2 percent before the nation’s central bank announces its latest policy decision. New Zealand and Australia’s dollars also dropped, alongside decline for commodities.
The euro was little changed at $1.1352. It rose 0.2 percent last session after a report from the European Central Bank indicated continued improvement in lending conditions. That may suggest officials can hold off from extending asset purchases.
Bonds
Yields on benchmark 10-year Treasuries fell three basis points to 2.04 percent. They have hovered near 2 percent since the start of the month. A gauge of U.S. sovereign bond market volatility dropped to 71 basis points this week, from 95 basis points as recently as August, as futures traders predict the Fed will be sidelined until March.
The yield on 10-year German bunds slid three basis points to 0.59 percent. Portuguese government bonds declined after Socialist opposition leader Antonio Costa said he can form a stable government backed by a majority in parliament, increasing investor uncertainty about who will lead the nation. The 10-year yield rose two basis points to 2.44 percent.
About 17 billion euros of bonds sold in Europe yesterday, including corporate issuance, making it the busiest day in the syndicated market since Feb. 10, according to data compiled by Bloomberg.
Emerging Nations
A Bloomberg index of 20 emerging-market currencies slid for a fourth day, the longest such streak since Sept. 23. The ruble fell about 0.8 percent and South Africa’s rand dropped 0.7 percent on the commodity decline. The ringgit fell 0.4 percent.
Malaysia is Asia’s only major net oil exporter.
The MSCI Emerging Markets Index lost 0.5 percent, sliding for a second day. The Shanghai Composite fell 3.1 percent, the most since Sept. 15, led by smaller companies. Hong Kong’s market was closed for a holiday. Turkish shares fell 0.8 percent and Saudi Arabia had a 2.2 percent decline.
Commodities
West Texas Intermediate crude fell 1.2 percent to $45.72 a barrel and Brent lost 0.6 percent to $48.42. U.S. crude inventories probably grew by 3.75 million barrels last week, following a 7.56 million expansion the prior period, according to a Bloomberg survey before an Energy Information Administration report Wednesday.
Representatives of the Organization of Petroleum Exporting Countries and producers outside the group are meeting in Vienna.
Venezuela will present evidence that oil at $88 a barrel is required to guarantee investments, President Nicolas Maduro said on state television Wednesday.
Aluminum fell 1.6 percent in London to $1,521.00 a metric ton, a sixth day of decline and the longest retreat in three months. Copper dropped 0.3 percent and nickel fell 0.7 percent.
Gold was little changed at $1,175.26 an ounce as investors await next week’s meeting of Federal Reserve policy makers for clues on the timing of a U.S. rate increase.
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