Gold Jumps as Wide Risk Aversion Pressures Oil, Copper and Stocks
Gold Jumps as Wide Risk Aversion Pressures Oil, Copper and Stocks
Stocks to watch on the Australian stock exchange on Tuesday: AQG - ALACER GOLD - up 16.00 cents, or 6.3 per cent, at $2.70 Alacer Gold shares have gained almost six per cent despite a 26 per cent fall ...
As the big iron ore miners prepare to list the extent of their earnings slump in the next two weeks, investors are really only focused on one issue: dividends. Global miners BHP Billiton and Rio Tinto have continued to pump more iron ore into the market during the past two years, despite falling prices for the steel-making commodity. "We would be expecting a correction in their dividend payouts," Anna Kassianos, resources analyst at fund manager Platypus Asset Management said.
Uncertainty about the outlook for oil divides oil speculators, leaving the markets with a record of bets on both long and short positions
The French government sealed several big deals with Iran last week, possibly trying to get ahead of other oil majors in the quest for Iran’s most lucrative oil plays
WTI Crude Oil Price Forecast: $30 Acting Like Strong Price Support
Oilfield service giant Weatherford decided to cut another 6,000 jobs in response to the ongoing oil price slump
Oil prices sank along with the euro after the European Central Bank forecast that the eurozone would continue to contract next year and only return to growth in 2014.
Tokyo stocks led a rout across Asian markets Tuesday, while Japanese government bond yields turned negative, the dollar dived against the yen and gold jumped as fears about the global economy sent investors scrambling to safety. London, Paris and Frankfurt all finished down more than 2.5 percent, with the German DAX ending below 9,000 for the first time since October 2014. In Asian trade, Tokyo slumped 5.4 percent by the close, putting the market back into bear territory, represented by a 20 percent fall from its recent highs.
Tokyo stocks led a rout across Asian markets Tuesday, while Japanese government bond yields turned negative, the dollar dived against the yen and gold jumped as fears about the global economy sent investors scrambling to safety. While most the the region is closed for the Chinese New Year holiday, trading remained thin but dealers took their lead from New York and Europe where banking shares were battered. The latest round of blood-letting came on the back of worries about the financial sector as the global economy slows down, without the support of the Federal Reserve's easy monetary policies.
Tokyo shares tumbled more than five percent Tuesday, extending a global sell-off as a stronger yen dented exporters and after oil prices tanked again on fears of a deepening economic slowdown. Financial markets in Europe and on Wall Street took another hammering on Monday, with the latest round of losses sparked by worries about the financial sector as the global economy slows down, without the support of the Federal Reserve's easy money policies. In the early afternoon, the yield on Japan's 10-year government bond dropped below zero for the first time ever as panicked investors ran for safety.
Venezuelan oil minister Eulogio del Pino has not managed to achieve a production after visiting OPEC’s most powerful member Saudi Arabia
US Crude Oil – Global Inflection Point?
Mexico's president replaced the head of troubled state energy giant Pemex on Monday amid a steep fall in world oil prices that have caused the company to lose millions. Emilio Lozoya, who has led Pemex since President Enrique Pena Nieto took office in December 2012, was succeeded by Jose Antonio Gonzalez Anaya, director of the Mexican Social Security Institute. "Adjusting its cost structure, reviewing its spending plan and strengthening its investment process through new association and investment schemes with the private sector will be necessary," Pena Nieto said.
Silver Price: Traders Buy Silver As Stock Markets Falter
Crude oil prices slid lower Monday, pushing US oil below $30 a barrel, after weekend talks between OPEC kingpin Saudi Arabia and Venezuela dashed hopes for a reduction in production. US benchmark West Texas Intermediate for March delivery sank $1.20 (3.9 percent) to $29.69 a barrel on the New York Mercantile Exchange. The meeting between Venezuela and Saudi oil ministers appeared to be a washout as Saudi Arabia continued to show unwillingness to support an emergency OPEC meeting on low prices, said Tim Evans of Citi Futures.
Gold Stalls Climb, Copper and Oil Recover in Thin Holiday Market
The uncertainties threatening the global economy are not coming from the eurozone, where growth is essentially due to stimulus and cheap oil, a European Central Bank official said Monday. "The eurozone is not part of the problem," ECB executive board member Benoit Coeure told French broadcaster BFM. "Our diagnosis today is that there are no bubbles in the eurozone," Coeure said when questioned about the ECB's ultra-low interest rate policy.
Oil fell on Monday, with New York prices briefly ducking underneath $30 amid a broader selloff on global stock markets, as hopes of an output cut faded. Prices had rebounded in Asian trading hours after OPEC producers Saudi Arabia and Venezuela held talks on the beleaguered market, raising hopes of production cutbacks. US benchmark West Texas Intermediate for March delivery sank to $29.57 per barrel, before pulling back slightly to stand at $30.21, down 68 cents from Friday's closing level.
Losses in Wall Street stocks accelerated Monday morning, with the Dow and S&P 500 dropping more than two percent as global equities retreated after another drop in oil prices. Near 1550 GMT, US stocks had cut losses a bit, with the Dow Jones Industrial Average down 285.68 points (1.76 percent) at 15,919.29. The broad-based S&P 500 fell 33.11 (1.76 percent) to 1,846.94, while the tech-rich Nasdaq Composite Index shed 93.38 (2.14 percent) to 4,269.76.
Ratings agency Moody's has downgraded Western Australia's credit rating to Aa2, reflecting an ongoing deterioration in its finances and an increasing risk that debt will be higher than forecast. At the time, Treasurer Mike Nahan placed a lot of the blame on the state's share of GST revenue while promising asset sales would keep a lid on debt. Moody's said on Monday that WA's debt was rising to a level "higher than that of its peers" due to a drop in the iron ore price and sluggish performance in payroll and other taxes, while corresponding expenditure measures were "absent".
European stock markets slumped on Monday as investors cashed out of banking shares following recent poor earnings, with worries about over China's economy and falling oil prices also weighing on sentiment. After a quiet session across Asia owing to the Chinese New Year, European equities plunged, with Madrid, Milan, Paris and Frankfurt all briefly losing more than 3 percent during in afternoon trading. Focus turned to the banking sector after the spotlight having been firmly on commodity stocks in recent weeks owing to slumping oil and metals prices.
European stock markets slumped on Monday, giving up initial gains, as focus switched to the banking sector following recent poor earnings and persistent worries over China's economy, analysts said. After a quiet session across Asia owing to the Chinese New Year, Europe opened higher but indices were down more than 2.0 percent in London and more than 3 percent in Paris and Frankfurt in afternoon trading, with the DAX falling below 9,000 points for the first time since October 2014. Focus turned to the banking sector after the spotlight having been firmly on commodity stocks in recent weeks owing to slumping oil and metals prices.
Rabobank says farmers will benefit from the dissipation of the El Nino weather pattern, a further weakening of the Australian dollar and lower oil prices helping to ease input costs. Rabobank's Agribusiness Outlook 2016 report, released on Monday, said the outlook was positive for most agricultural sectors, especially beef and sheep producers. Rabobank's manager of country banking in Australia, Todd Charteris, said the El Nino weather pattern in 2015 had hindered production, especially the winter grain crop.