Fall on oil shares; Singapore posts biggest drop since August

Summary of the news presented in point form:

  • Southeast Asian stock markets fell in line with global equities on Wednesday, with Singapore posting its worst drop in nearly five months and the Philippines sliding to a near two-year closing low , as energy shares faced pressure due to a relentless slide in oil prices.
  • Singapore’s key Straits Times Index ended down 3%, its biggest single-day percentage decline since Aug 24.
  • Shares of oil-related companies fell, due to the relentless slump in oil prices.
  • Thai PTT dropped 5% and Malaysia’s Sapurakencana Petroleum shed 4%.

Source: http://www.theedgemarkets.com/my/article/fall-oil-shares-singapore-posts-biggest-drop-august

Oil rises on record Chinese demand, oversupply caps gains

Summary of the news presented in point form:

  • Oil prices rose more than 3% on Tuesday, as data showed Chinese oil demand likely hit a record high in 2015, but contracts remained below US$30 a barrel, as the IEA said the market should stay oversupplied this year.
  • Traders said prices drew support from strong oil demand in China. Preliminary Reuters calculations based on government figures showed record oil consumption of 10.32 million barrels per day (bpd), up 2.5% from 2014, defying slowing growth in the world’s second-largest economy.
  • However, oil prices remained near 12-year lows, as a global glut was set to last until at least late 2016, according to the International Energy Agency.

Source: http://www.theedgemarkets.com/my/article/oil-rises-record-chinese-demand-oversupply-caps-gains

Oil sucks stocks down as global recession fears bubble up

Summary of the news presented in point form:

  • Crude has been on a downward spiral for the last 1-1/2 years, losing 75% of its value, but the latest spin towards the plughole late last year has sucked stocks down with it.
  • The benefits of cheap oil is obvious that is to lower costs for businesses and savings for consumers.
  • However, the lower fuel price leads to a deflation instead of a spending boom as the businesses and consumers use the savings from the fuel price to cut down their debt rather than spend more.
  • The major asia index such as Japan’s Nikkei 225 index, Hong Kong’s Hang Seng and South Korea’s Kospi have all lost between 9% and 14%, as oil prices plunged almost 40% to below US$29 a barrel.

Source: http://www.theedgemarkets.com/my/article/oil-sucks-stocks-down-global-recession-fears-bubble

SE Asian stocks low; Philippines leads drop on weak China, oil market

Summary of the news presented in point form:

  • SE Asian stock markets fell on Monday as falls in China stocks and sliding global oil prices hit sentiment in the region.
  • The Philippine’s composite index ended down 4.4%, with 29 of 30 stocks down.
  • Singapore’s Straits Times Index was down 1.5% at 2,708.85, the lowest close since June 2012.
  • Malaysia’s key index hit a three-week closing low, the Jakarta composite index slipped to a near one-month low and the Thai SET index lost almost 1%, with foreign investors leading the share selling.

Source: http://www.theedgemarkets.com/my/article/se-asian-stocks-low-philippines-leads-drop-weak-china-oil-market

Futures higher ahead of Christmas; Brent dips to 11-yr low

Summary of the news presented in point form:

  • U.S. stock index futures were sharply higher on Monday, ahead of a holiday-shortened week, while Brent crude hit an 11-year low.
  • However, the trading volume are expected to be relatively light this week with US stock markets operating a shortened session due to Christmas holiday.
  • Crude oil prices have been sliding under continued pressure from global oversupply and tepid demand.
  • U.S. stocks closed lower on Friday, on worries ranging from lower crude prices to the global response to the Federal Reserve’s interest hike.

Source: http://www.theedgemarkets.com/my/article/futures-higher-ahead-christmas-brent-dips-11-yr-low

Crude falls after Fed rate hike, inventory gains

Summary of the news presented in point form:

  • Fed raised rate for the first time in nearly a decade official figures showed a surprise build in U.S. inventories.
  • Higher U.S. rates typically support the dollar, making oil and other commodities denominated in the greenback more expensive, undermining demand.
  • The Energy Information Administration(EIA) data showed crude inventories rose 4.8 million barrels last week to near record highs.
  • According to the overall bearish market picture, OPEC producers see scant chance of a significant rise oil prices in 2016 as extra Iranian production could add to the ongoing glut.

Source: http://www.theedgemarkets.com/my/article/crude-falls-after-us-fed-rate-hike-inventory-gains

Aisa Fx firms as markets bet Fed will go slow after liftoff

Summary of the news presented in point form:

  • Most emerging Asian currencies rose as the market wagered on a more gradual policy tightening path by the Fed following an expected historic rate hike.
  • The South Korean won gained as the dollar came off a near one-week high;and the Taiwan dollar advanced on corporate demand.
  • However, the yuan continued to fall in the onshore market after China’s central bank set its daily guidance rate weaker again.
  • Fed officials have suggested they will act cautiously to nurture a tepid recovery spurring expectations of a rate increase with signals of a slow tightening policy.

Source: http://www.theedgemarkets.com/my/article/asia-fx-firms-markets-bet-fed-will-go-slow-after-liftoff

Futures little changed as investors focus on Fed meet

Summary of the news presented in point form:

  • U.S. stock index futures were little changed on Monday, as investors brace for a widely expected interest rate hike in more than a decade.
  • The Federal Reserve will begin its two-day meeting on Dec 15, to decide on the rate hike.
  • Traders expect an 85% chance the Fed will lift its target rate range to 0.25% to 0.50%, from the current zero to 0.25%.
  • Global stock markets were volatile on Monday, as China’s yuan hit a multi-year year low and oil slid to a 11-year low.

Source: http://www.theedgemarkets.com/my/article/futures-little-changed-investors-focus-fed-meet

Ringgit in spotlight ahead of US rate decision

Summary of the news presented in point form:

  • At current levels, Ringgit could have priced in the possibility of a US rate hike this week
  • The currency contends with a weaker yuan and crude oil prices.
  • US potential rate hike was expected to have marginal impact on the ringgit
  • Investors will turn their attention to US dollar-denominated assets when US rate hike
  • Crude oil prices at below US$40 a barrel due to oversupply, have raised concerns on the ringgit

Source: http://www.theedgemarkets.com/my/article/ringgit-spotlight-ahead-us-rate-decision

Nikkei falls to 3-week low as oil price fears offset strong machinery order

Summary of the news presented in point form:

  • Japan’s Nikkei share average fell to its lowest in more than three weeks on Wednesday morning after U.S. stocks dropped on concerns over sliding oil prices, offsetting Japan’s better-than-expected machinery orders data.
  • The Nikkei dropped 1.1 percent to 19,278.20 after hitting as low as 19,261.16 earlier, the lowest since November 16.
  • The Japanese market could suffer a ripple effect as long as investors avoid risky assets.
  • The only catalyst will be FED’s rate hike but that could also be negative for the market due the worries over global market health while weak oil prices remain as a concern.

Source: http://www.theedgemarkets.com/my/article/nikkei-falls-3-week-low-oil-price-fears-offset-strong-machinery-orders