2023-12-12 06:47

Copyrighted Image by: Reuters. Oil prices remained unchanged on Tuesday as investors awaited key interest rate policy decisions and inflation data. Doubts persist about whether production cuts by OPEC+ next year will balance the crude oversupply and slowing fuel demand growth. Brent crude futures for February held at $76.03 a barrel, while U.S. West Texas Intermediate (WTI) crude futures for January delivery saw a minimal increase of 3 cents to $71.35 a barrel. Both contracts experienced slight gains on Monday, with Brent rising 19 cents and WTI increasing by 9 cents. OPEC+ has committed to reducing output by 2.2 million barrels per day for the first quarter of 2024. However, investors remain skeptical that this will lead to a total supply reduction, given the expected excess supply from non-OPEC countries' output growth next year. ANZ Research analysts noted that U.S. shale oil operations and other non-OPEC producers have been producing more than anticipated. Brent crude has seen a decline from above $80 a barrel at the beginning of December, while WTI has fallen from over $77. The market structure for both WTI and Brent is in contango for the first several months of 2024, signaling that investors expect either lower demand for crude or sufficient supply during those times. The oil market is closely monitoring the upcoming monthly oil market reports from OPEC and the International Energy Agency. Additionally, negotiations at COP28 are under observation, where a draft of a potential climate deal failed to include the phase-out of fossil fuels, drawing criticism from various countries. The market is also keeping an eye on central banks' interest rate policies and U.S. inflation data. The U.S. Consumer Price Index report is scheduled for release today, while the Federal Open Markets Committee's monetary policy meeting concludes on Wednesday. Interest rate decisions from the European Central Bank and the Bank of England are expected on Wednesday and Thursday, respectively. In related news, demand for Saudi Arabian crude oil from Chinese refiners has hit a five-month low. Higher-than-expected prices have led buyers to seek more affordable supplies, with Saudi Arabia and Russia competing as China's top oil suppliers. https://www.investing.com/news/commodities-news/oil-prices-stable-as-investors-await-rate-decisions-93CH-3254410

2023-12-12 05:37

Investing.com-- Gold prices moved little on Tuesday, with the yellow metal nursing a sharp fall away from record highs as markets hunkered down before key U.S. inflation data, as well as a Federal Reserve interest rate decision. Gold lost the coveted $2,000 an ounce level this week as markets second-guessed bets that the Fed will cut interest rates by as soon as March 2024. These bets had briefly driven gold to record highs of over $2,100 an ounce earlier this month. But gold plummeted sharply from record highs over the past week, as signs of resilience in the U.S. economy saw markets betting that the Fed will have more space to keep rates higher for longer. This notion supported the dollar and also spurred some risk-taking, which pressured gold prices. Spot gold rose 0.2% to $1,986.24 an ounce, while gold futures expiring February rose 0.4% to $2,001.40 an ounce by 00:12 ET (05:12 GMT). US inflation, Fed rate decision in focus Markets were now squarely focused on U.S. consumer price index (CPI) inflation data, due later on Tuesday. While the reading is expected to show that inflation eased slightly in November, it is still expected to remain well above the Fed’s 2% annual target. Following the inflation data, the Fed is set to decide on interest rates for the final time this year on Wednesday. The Fed is widely expected to keep rates on hold, but any signals from the central bank on the path of interest rates in 2024 will be closely watched. So far, the Fed has largely maintained its rhetoric that rates will remain higher for longer. But recent signs of some cooling in the U.S. economy spurred some bets on an early rate cut next year. Gold has traded largely according to signals on U.S. monetary policy in recent months, given that higher rates increase the opportunity cost of investing in the yellow metal. This notion has also kept gold away from record highs for most of the year. Copper steadies after China disinflation shock Among industrial metals, copper prices rose slightly on Tuesday after concerns over an economic slowdown in top importer China spurred steep losses this week. Copper futures expiring in March rose 0.3% to $3.7945 a pound, after losing 1.4% in the prior session. Data released over the weekend showed China, the world’s largest copper importer, slid further into disinflation in November. The reading ramped up concerns over a sustained economic slowdown in the country, and also set a negative tone for copper markets, given that slowing growth in China bodes poorly for copper demand. Focus is now on more Chinese economic cues this week, with industrial production data due on Friday. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/commodities-news/gold-steadies-below-2000-before-cpi-data-fed-meeting-3254394

2023-12-12 04:34

Copyrighted Image by: Reuters Investing.com-- Most Asian currencies kept to a tight range on Tuesday, while the dollar steadied after recent gains as traders hunkered down before key U.S. inflation data and a Federal Reserve meeting due in the coming weeks. The dollar index and dollar index futures fell slightly in Asian trade. But the greenback held above 104 against a basket of currencies, as uncertainty over the Fed’s plans to cut interest rates in 2024 drove some flows into the dollar. Consumer price index data is due later in the day, and is expected to show that inflation eased slightly in November. But traders remained wary of a stickier reading, especially after nonfarm payrolls data released last week beat expectations. While the Fed is widely expected to hold rates steady on Wednesday, markets grew more uncertain over when the bank could begin trimming rates in 2024. The strong payrolls data saw Fed Fund traders scaling back bets on a March 2024 rate cut. This spurred some strength in the dollar, and pressured Asian currencies. The Japanese yen rose 0.4% on Tuesday, but was nursing steep losses from the prior session after media reports showed that the Bank of Japan had no intention of moving away from its ultra-loose policies in the near-term. While the bank has still signaled some intent to eventually raise interest rates from negative levels, the reports suggested that such a move was likely to be later, rather than sooner. Data on Tuesday showed a mild pick-up in Japanese producer price inflation in November. Among other Asian currencies, the Chinese yuan was flat as a series of strong midpoint fixes by the People’s Bank helped the currency weather data showing a sustained disinflationary trend in China. But this led to a wider gulf between the onshore and offshore yuan. The offshore yuan traded around 7.1875, while the onshore yuan was at 7.1766 to the dollar. Weak inflation data raised more concerns over a persistent economic slowdown in China, and also dented sentiment towards broader Asian markets. The Australian dollar rose 0.4% on Tuesday after retreating in the prior session on concerns over China. Reserve Bank of Australia Governor Michele Bullock said the bank will maintain a cautious approach with monetary policy, after warning on potential inflation risks earlier this month. The South Korean won was flat after retreating in the prior session, while the Singapore dollar and Malaysian ringgit also tread water. The Indian rupee hovered around record lows before key CPI inflation data from the country due later in the day. The reading comes on the heels of a warning from the Reserve Bank of India that inflation risks remained primed towards the upside, due to high food prices. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out! https://www.investing.com/news/forex-news/asia-fx-muted-dollar-steady-with-cpi-data-fed-in-sight-3254372

2023-12-12 01:48

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower on Tuesday, as traders fretted over the demand outlook following the diminishing prospect of an impending pivot in Federal Reserve interest rate policy early next year. By 14:30 ET, the West Texas Intermediate crude futures had fallen by 3.8% to $68.61 per barrel. The Brent oil futures expiring in February had slipped by 3.5% to $73.35 a barrel. Annual headline consumer price growth edged down to 3.1% last month, decelerating from 3.2% in October, according to data from the Bureau of Labor Statistics on Tuesday. Month-on-month, the reading inched up by 0.1%. Economists had forecast the measures at 3.1% and 0.0%, respectively. The closely-watched "core" figure, which strips out volatile items like food and energy, rose by 4.0% annually, in line with the prior month. On a monthly basis, underlying price gains came in at 0.3%, a marginally faster pace than 0.2% in October. Both matched estimates. The numbers threatened to exacerbate fears that Fed policymakers may leave interest rates at high levels for a longer than anticipated period of time, a trend that could eat away at demand in the world's biggest fuel consumer. Also darkening the demand picture was data over the weekend which showed that top oil importer China slipped further into deflation in November, raising more concerns over slowing economic activity in the country. Overall, the near-term outlook for oil remains dour, particularly with global monetary conditions likely to remain restrictive. Underwhelming production cuts from the Organization of the Petroleum Exporting Countries and its allies including Russia (OPEC+) have also dampened sentiment. Upgrade your investing with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon code PROPLUSBIYEARLY to get a limited time discount on our Bi-Yearly subscription plan. Click here to find out more, and don't forget to use the discount code when checking out. https://www.investing.com/news/commodities-news/oil-prices-tread-water-amid-china-caution-cpi-anticipation-3254334

2023-12-11 18:14

Investing.com - Cardano was trading at $0.6506 by 02:48 (06:48 GMT) on the Investing.com Index on Sunday, down 10.19% on the day. It was the largest one-day percentage loss since December 16, 2022. The move downwards pushed Cardano's market cap down to $23.5301B, or 0.95% of the total cryptocurrency market cap. At its highest, Cardano's market cap was $94.8001B. Cardano had traded in a range of $0.6494 to $0.6737 in the previous twenty-four hours. Over the past seven days, Cardano has seen a drop in value, as it lost 9.86%. The volume of Cardano traded in the twenty-four hours to time of writing was $991.2856M or 0.69% of the total volume of all cryptocurrencies. It has traded in a range of $0.6494 to $0.8097 in the past 7 days. At its current price, Cardano is still down 79.01% from its all-time high of $3.10 set on September 2, 2021. Elsewhere in cryptocurrency trading Bitcoin was last at $65,541.8 on the Investing.com Index, down 5.28% on the day. Ethereum was trading at $3,485.03 on the Investing.com Index, a loss of 6.47%. Bitcoin's market cap was last at $1,290.7198B or 51.96% of the total cryptocurrency market cap, while Ethereum's market cap totaled $420.5588B or 16.93% of the total cryptocurrency market value. https://www.investing.com/news/cryptocurrency-news/cardano-falls-10-in-selloff-3341072

2023-12-11 14:23

Copyrighted Image by: REUTERS As the COP28 climate summit in Dubai approaches its scheduled conclusion on Tuesday, tensions are high among nearly 200 countries over the potential inclusion of fossil fuel phase-out language in the final agreement. U.N. Secretary General Antonio Guterres has emphasized the importance of a deal that accelerates the reduction of coal, oil, and gas use to prevent catastrophic climate impacts. Guterres acknowledged the challenges faced by different nations in transitioning away from fossil fuels, stating that not all countries are expected to eliminate their use simultaneously. He highlighted the need for significant financial support to assist developing nations in overhauling their energy systems. South African Environment Minister Barbara Creecy, speaking on Sunday, underscored the divide between ambitions for climate action and the means to implement such changes, indicating a need for financial mechanisms to support these efforts. A group of over 100 countries, including major oil and gas producers like the United States, Canada, Norway, the European Union, and climate-vulnerable island nations, are advocating for an agreement that explicitly calls for the phasing out of fossil fuels. This proposal has not been previously accomplished in the history of U.N. climate summits. Canadian Environment Minister Steven Guilbeault expressed frustration with the opposition led by the Organization of the Petroleum Exporting Countries (OPEC) to include explicit language on fossil fuels in the agreement. Guilbeault, representing a significant oil and gas producer, recognized the complexity and unease this transition might cause but insisted it is not a reason to avoid action. The high consensus threshold required for any deal at U.N. climate summits means that all participating countries must agree on the steps forward. This process is designed to ensure that the global community is unified in its approach to climate change, which countries should then implement through national policies and investments. Saudi Arabia, seen as a key opponent to the fossil fuel phase-out language, did not comment when requested. However, a Saudi representative stated on Sunday that the COP28 deal should focus on reducing emissions rather than targeting specific energy sources. Despite the push for a transition to renewable energy, fossil fuels still account for approximately 80% of global energy production. OPEC and OPEC+ members, including Russia, Iraq, and Iran, have also reportedly resisted the inclusion of a fossil fuel phase-out in the COP28 agreement. The United Arab Emirates, a major oil producer and host of the summit, has called for compromise among countries to achieve a deal that addresses fossil fuels. Singapore's environment minister Grace Fu acknowledged progress in some areas of the negotiations on Monday but noted that significant work remains to bridge the gaps on critical issues. With the summit potentially extending beyond its scheduled end date, the outcome of these negotiations will be closely watched by the global community. https://www.investing.com/news/commodities-news/cop28-faces-critical-phase-in-fossil-fuel-debate-93CH-3254041