U.S. oil trades below $44 a barrel as inventories seen rising Fed commentary in focus as few traders expect rate increase Share on Facebook Share on Twitter Oil fell from the lowest close in two months and European shares declined for a second day as the Federal Reserve prepared to start a two-day meeting. The yen advanced against all major peers and emerging-market stocks retreated. West Texas Intermediate traded below $44 a barrel ahead of a report that may show that American crude stockpiles expanded. Natural-gas contracts traded below $2 for the first time since 2012. Energy and commodity companies were the biggest decliners in the Stoxx Europe 600 Index. The yen strengthened for a second day on declining appetite for riskier assets and speculation the Bank of Japan will refrain from adding stimulus this week. Emerging-market stocks pared the biggest monthly gain since January 2012. Treasuries held a gain on speculation the Fed will keep its benchmark interest rate at a record low. China’s interest-rate cut last week highlighted risks to the biggest economies. Benchmark 10-year note yields was little changed at 2.05 percent, according to Bloomberg Bond Trader data.The yield slid three basis points Monday. U.S. Treasury bill rates were little changed, after dropping Monday in the run-up to an agreement between the White House and top lawmakers from both parties that will avert a debt default after Nov. 3. The yield on bills maturing Nov. 12 were at 0.055 percent from 0.14 percent Oct. 23. The accord will extend the government’s borrowing authority until March 2017 and include a two-year deal on spending, aides from both parties said. House and Senate Republican leaders presented the plan to members Monday night and a draft of the bill was later posted on the White House website. The yield on 10-year German bonds slid one basis point to 0.49 percent, while that on similar-maturity Spanish bonds fell two basis points 1.61 percent.

Source