BLBG:Oil Drops as Rising Chinese Stocks Erase Asian Losses
Oil fell, with U.S. prices slipping for a fourth day, after an industry report showed crude supplies rose for a ninth week. European stocks followed Chinese gains while Indonesia’s currency weakened.
West Texas Intermediate oil dropped 0.3 percent as of 8:08 a.m. in London. The Stoxx Europe 600 Index increased 0.2 percent while the Shanghai Composite Index (SHCOMP) advanced for the first time in five days and Thai stocks climbed following a surprise rate cut. U.S. stock-index futures were little changed after the Nasdaq Composite Index (CCMP) closed above 4,000 for the first time in 13 years yesterday. The euro touched a four-year high against the yen while Indonesia’s rupiah fell 1 percent after sliding to the weakest since March 2009.
Crude inventories in the U.S., the world’s biggest oil consumer, climbed by 6.9 million barrels last week, the American Petroleum Institute said yesterday, before a government report expected to show oil supplies in the nation increased. Lawmakers in Germany reached a coalition accord before consumer confidence projections. A U.S. confidence measure unexpectedly dropped yesterday and data may show today that jobless claims gained from an almost two-month low.
“Data on balance still looks murky,” Matthew Sherwood, the head of investment markets research in Sydney at Perpetual Ltd., which manages about $25 billion, said by e-mail. “Most importantly, there was a surprise decline in the Conference Board’s measure of consumer confidence.”
Chinese Gains
WTI oil dropped to $93.39 a barrel. The Energy Information Administration will probably say oil supplies rose 750,000 barrels last week, according to the median of 11 responses in a Bloomberg survey. Prices slipped Nov. 25 after Iran and world powers reached an interim agreement to restrict the country’s nuclear program in exchange for the easing of some sanctions.
Shares in Shanghai gained 0.8 percent, with Chinese stocks in Hong Kong adding 0.9 percent. The city’s Hang Seng Index advanced 0.5 percent.
Guangzhou Hi-Target Navigation Tech Co. (300177) jumped by the limit of 10 percent in Shanghai on speculation an air-defense zone claimed by China and disputed by Japan will lead to higher military spending. The area includes three islands in the East China Sea that are owned by Japan, a U.S. ally, and have been at the center of a dispute between Asia’s two biggest economies.
Japan Airlines Co. flew through the air zone without reporting to China, spokesman Kazunori Kidosaki said today. Peach Aviation Ltd., a low-fare carrier affiliated with ANA Holdings Inc., also said it crossed the zone.
German Coalition
Thai stocks rose for a second day after the nation’s central bank unexpectedly cut interest rates. All 19 economists in a Bloomberg News survey predicted the rate would be held. Thailand’s baht fell 0.2 percent as the central bank lowered its 2013 growth forecast amid continuing anti-government protests.
The Topix Index (TPX) in Japan slipped 0.5 percent, extending a retreat from a six-month high, while Australia’s S&P/ASX 200 Index also fell 0.5 percent. The yen declined 0.3 percent against the dollar, unwinding yesterday’s first advance in four days. The euro was little changed against the dollar.
More than two months after German Chancellor Angela Merkel won national elections, today’s accord sets her on track to lead the country until 2017. A GfK SE report today is forecast to show that German consumer confidence will rise in December.
The Conference Board’s confidence index fell to 70.4 from a revised 72.4 a month that was stronger than initially estimated, the New York-based private research group said yesterday. The median forecast in a Bloomberg survey of 78 economists called for a November reading of 72.6.
Rupiah, Soybeans
Initial claims for U.S. unemployment benefits probably rose to 330,000 in the week to Nov. 28, after falling to the lowest level in almost two months in the previous period, according to the median of 44 economists’ estimates compiled by Bloomberg.
Indonesia’s rupiah extended declines on concern the current-account and trade deficits aren’t narrowing fast enough. The currency yesterday slid after a dollar bond sale fell short of its target. Malaysia’s ringgit sank to its weakest in eight weeks.
Soybeans climbed as much as 0.7 percent to a two-month high on expectations that demand for U.S. supplies will remain strong even after China canceled some orders. Wheat rose 0.5 percent, rebounding from the first drop in three sessions. Gold gained 0.2 percent, rising from near a four-month low.
To contact the reporters on this story: Rachel Evans in Hong Kong at revans43@bloomberg.net; Adam Haigh in Sydney at ahaigh1@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
