Sujin

Sujin

NEW YORK (Reuters) - Oil rose more than 1 percent to four-month highs on Thursday, spurred by another informal OPEC meeting on output cuts and plunging U.S. crude inventories, with some saying the market has overshot itself with a near 15-percent gain in seven sessions. Saudi, Iranian and Iraqi energy ministers will be among key OPEC representatives to meet non-OPEC member Russia on the sidelines of an energy conference next week in Istanbul, OPEC sources said. Oil has gained more than $6 a barrel since the Organization of the Petroleum Exporting Countries announced at informal talks in Algeria on Sept. 28 that it hopes to reduce output to 32.5 million-33 million barrels per day. That would remove about 700,000 bpd from a global glut estimated by analysts at 1.0 million-1.5 million bpd. On top of OPEC's pledged output cuts, prices were supported by the surprise drop in U.S. crude stocks for a fifth week in a row, bringing the total drawdown since the beginning of September to 26 million barrels, according to government data on Wednesday. [EIA/S] Brent crude (LCOc1) settled up 65 cents, or 1.3 percent, at $52.51 a barrel. It rose earlier to $52.65, its highest since June 9. U.S. West Texas Intermediate crude (CLc1) closed up 61 cents, or 1.2 percent, at $50.44. It was WTI's first settlement above $50 since June 24. The Relative Strength Index for both benchmarks were at 69 -- just below the 70 level for a technically overbought market. Earlier on Thursday, prices pared gains briefly after energy monitoring service Genscape reported a build of nearly 1 million barrels in stockpiles at the Cushing, Oklahoma delivery base for WTI during the week to Oct 4. "It's really crazy these markets," said Carsten Fritsch, commodities strategist for Commerzbank (DE:CBKG) in Frankfurt. "Prices rise, regardless of the news flow and any dip is being seen as buying opportunity." Oil crashed from above $100 a barrel in mid-2014 to around $26 in February this year from oversupply of up to 2 million bpd and OPEC's refusal then to cut output. OPEC's policy meeting in Vienna on Nov. 30 will decide how the group's members would contribute to the pledged cuts. Algeria's Energy Minister Nouredine Bouterfa told local media OPEC could ultimately reduce output by another 1 percent above the 700,000 bpd agreed in Algeria. "We expect that Saudi will shoulder the bulk of the production cuts with a reduction of 5 percent or 0.5 million bpd, with other Gulf States cutting by 0.3 million bpd," Bernstein Energy said in a note, adding that Iran, Libya and Nigeria were likely to get a "pass". Source: investing.com (06/10/2016)

Investing.com - Gold gained in Asia on Friday as the pound plunged in thin trade as investors awaited U.S. jobs data and the return of China to the markets next week after a week-long holiday. Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.41% to $1,258.15 a troy ounce. Silver futures for December delivery on the Comex recovered to $17.343 a troy ounce, nearly flat. The British pound fell sharply in Asia Friday on growing concerns over the terms of a break from the European Union following comments by the government earlier this week the formal move would come by March of next year. Market participants were focusing on Friday’s U.S. nonfarm payrolls report for further indications on the strength of the job market, as the Federal Reserve has indicated that future interest rate decisions will be data-dependent. The consensus forecast is that the data will show jobs growth of 175,000 in September, following an increase of 151,000 in August. The unemployment rate is forecast to hold steady at 4.9%, while average hourly earnings are expected to rise 0.2% after gaining 0.1% a month earlier. Overnight, gold prices extended overnight losses to touch the lowest level in almost four months during North America's session on Thursday, amid growing expectations for a December rate hike by the Federal Reserve. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 1 decreased by 5,000 to 249,000 from the previous week’s total of 254,000. Analysts had expected jobless claims to rise by 3,000 to 257,000 last week. First-time claims were the lowest since April, when initial applications for aid were at levels not seen since November 1973. A strong nonfarm payrolls report would reinforce the view that a U.S. rate hike in December may be on the cards, after hawkish signals from senior Fed officials in recent weeks revived speculation of a rate hike before the end of the year. According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 63.4% chance of a rate hike by December. November odds were at 14.5%. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. Source: investing.com (07/10/2016)

Investing.com - The dollar held onto gains against the other major currencies on Thursday, boosted by the release of strong U.S. jobless claims data and as investors turned their attention to Friday’s key U.S. employment report. The dollar was boosted after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 1 decreased by 5,000 to 249,000 from the previous week’s total of 254,000. Analysts had expected jobless claims to rise by 3,000 to 257,000 last week. Market participants were eyeing Friday’s U.S. nonfarm payrolls report for further indications on the strength of the job market, as the Federal Reserve has indicated that future interest rate decisions will be data-dependent. EUR/USD slid 0.29% to 1.1172. In the euro zone, data earlier showed that German factory orders rose 1.0% in August, beating expectations for an uptick of 0.2%. German factory orders increased by 0.3% in July, whose figure was revised from a previously estimated 0.2% gain. Meanwhile, speculation over the possibility that the European Central Bank could scale back its asset purchase program sooner than expected subsided after officials denied the rumors, saying that Governing Council “has not discussed these topics”. GBP/USD retreated 0.82% to trade at a 31-year low of 1.2640. Elsewhere, USD/JPY gained 0.43% to a one-month high of 103.96, while USD/CHF advanced 0.51% to 0.9792. The Australian and New Zealand dollars remained weaker, with AUD/USD down 0.70% at 0.7567 and with NZD/USD sliding 0.45% to 0.7141. Markets shrugged off a report by the Australian Bureau of Statistics showing that the trade deficit narrowed to A$2.010 billion in August from A$2.121 billion in July. Analysts had expected the trade deficit to hit A$2.300 billion in August. Elsewhere, USD/CAD gained 0.39% to trade at 1.3228. Statistics Canada reported on Thursday that building permits increased by 10.4% in August, beating expectations for a 3.0% rise. Building permits rose 3.4% in July, whose figure was revised from a previously estimated 0.8% uptick. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.47% at a fresh two-month high of 96.58. Source: investing.com (07/10/2016)

Investing.com - The yen gained in Asia on Friday on safe-haven demand as the British pound fell sharply on growing concerns over the terms of a break from the European Union following comments by the government earlier this week the formal move would come by March of next year. Concerns that France and other leading eurozone countries would demanding tough Brexit conditions sparked the sharp and surprise Asian fall, with traders suggesting a thin market ahead of U.S. payrolls allowed the sharp drop and China's return to the markets next week after a week-long holiday. GBP/USD came under renewed pressure on Thursday after Prime Minister Theresa May's comments on the Bank of England's alleged loose monetary policy. GBP/USD traded at 1.2420, down 1.56%, while USD/JPY changed hands at 103.73, down 0.20%. AUD/USD traded at 0.7574, down 0.15% and EUR/USD traded at 1.1136, down 0.12%. In Japan, average cash earnings for September dropped 0.1%, widely missing the 0.5% gain seen year-on-year for the first drop in three months following growth in July and June. The government maintains the view that wage hikes are gradual and need close watching. Firms are slow to raise wages amid uncertainty over global and domestic growth. Consumer spending has been sluggish in the face of a slow wage recovery despite labor shortages in some sectors. Earlier in Australia, the September AIG construction index came in at 51.4, a jump of 4.8 points into expansion from 46.6 in August. "While residential building remains at healthy levels, the easing of current activity and new orders recorded in the Australian PCI suggests that we are near the top of the current cycle and that residential building is losing its position at the forefront of the restructuring of the economy," said I head of policy Peter Burn, who noted road and rail projects underway or under consideration are aiding the economy. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.21% to 96.86. Market participants were focusing on Friday’s U.S. nonfarm payrolls report for further indications on the strength of the job market, as the Federal Reserve has indicated that future interest rate decisions will be data-dependent. The consensus forecast is that the data will show jobs growth of 175,000 in September, following an increase of 151,000 in August. The unemployment rate is forecast to hold steady at 4.9%, while average hourly earnings are expected to rise 0.2% after gaining 0.1% a month earlier. A strong nonfarm payrolls report would reinforce the view that a U.S. rate hike in December may be on the cards, after hawkish signals from senior Fed officials in recent weeks revived speculation of a rate hike before the end of the year. According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 63.4% chance of a rate hike by December. November odds were at 14.5%. Overnight, the dollar held onto gains against the other major currencies on Thursday, boosted by the release of strong U.S. jobless claims data and as investors turned their attention to Friday’s key U.S. employment report. The dollar was boosted after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending October 1 decreased by 5,000 to 249,000 from the previous week’s total of 254,000. Analysts had expected jobless claims to rise by 3,000 to 257,000 last week. In the euro zone, data earlier showed that German factory orders rose 1.0% in August, beating expectations for an uptick of 0.2%. German factory orders increased by 0.3% in July, whose figure was revised from a previously estimated 0.2% gain. Meanwhile, speculation over the possibility that the European Central Bank could scale back its asset purchase program sooner than expected subsided after officials denied the rumors, saying that Governing Council “has not discussed these topics”. Source: investing.com (07/10/2016)

HONG KONG/TOKYO (Reuters) - Sterling recouped some losses after plunging to a three-decade low in early Asian trade on Friday as a break of key technical support levels triggered a wave of stop-loss selling, though the broader global market impact was limited with stocks only slightly down. The pound nosedived by almost 10 percent at one point to $1.1378 but quickly bounced. By midmorning it had steadied at around $1.2362, still down 2 percent from late U.S. levels and leaving traders scratching their heads in the absence of any major news overnight. "This was even a bigger move than what we saw after the Brexit vote. There was almost no offer, no bids when this happened," said a trader at a European bank in Tokyo. The pound has been under renewed pressure on fears of a "hard" exit by Britain from the European Union after UK Prime Minister Theresa May set a March deadline for the formal departure process from the EU to begin. "The whole thing's been on a precipice since Sunday, since Theresa May (pointed to) March Brexit negotiations, but the selling has been very substantial so you can only think its been part of that general punishment of the pound for Brexit," said Sean Callow, senior currency strategist at Westpac in Sydney. "I think we've underestimated how many people had money positions for a very wishy-washy Brexit or even none. May's comments have really just started the cleanout and we just haven't seen any sign of bouncing." While the move broadly coincided with some news reports that Britain's exit from the eurozone may be a tough process, some traders blamed it on a possible a "fat finger" error triggering the automatic stop-loss orders. "A few stops got triggered in early trading and once cable broke 1.20, option barriers sent it lower," said Gerrard Katz, head of Asian FX sales and trading at Scotiabank said. "The broader market impact has been limited and cable should consolidate between the 1.20 and 1.25 levels." Britain's finance minister Philip Hammond tried to reassure jittery markets on Thursday, saying the UK economy was fundamentally strong, but he acknowledged that next year will be "turbulent". Elsewhere in currency markets, the dollar edged down 0.3 percent against the yen to 103.66 after hitting its highest level in a month on Thursday. The euro eased 0.2 percent to $1.1128, poised to shed 1 percent for the week. The greenback held firm after data on Thursday showed the number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, boding well for Friday's closely-watched payroll data. In stocks, Asian shares dipped but held not far from the 14-month high touched last month ahead of the U.S. jobs report later in the day, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.2 percent and Japan's Nikkei falling 0.2 percent. Strong U.S. jobs numbers could cement expectations of a Federal Reserve rate increase later this year and ripple through markets. Economists polled by Reuters forecast nonfarm payrolls to increase by 175,000. A disorderly reaction to possible U.S. interest rate hikes could disrupt capital flows and heighten asset price volatility in Asia, the International Monetary Fund said on Thursday. Interest rate futures are now pricing in about 65 percent chance of a rate hike by December, compared to less than 50 percent late last month. The 10-year U.S. Treasuries yield hit a three-week high of 1.746 percent on Thursday before easing slightly to 1.73 percent on Friday. Gold hits 3 1/2-month low of $1,250 per ounce, having declined five percent on the week. It last stood at $1,258.8. Silver fell more than 10 percent so far this week to hit a four-month low of $17.1525 per ounce. Oil prices continued to climb, with U.S. crude breaking through $50, spurred by an informal meeting among the world's biggest producers on output cuts and falling U.S. crude inventories. U.S. crude futures stood at $50.47 per barrel, just below Thursday's four-month high of $50.63. Source: investing.com (07/10/2016)