Oil prices hit five-year lows, unable to find a bo
Post# of 39368
Posted On: 11/30/2014 10:48:16 PM
Oil prices hit five-year lows, unable to find a bottom despite their biggest fall in 2 1/2 years last week after OPEC held back from cutting output in the face of a supply glut.
U.S. crude (CLc1) fell more than two percent to a five-year low of $64.10 per barrel, with the fall from June exceeding 40 percent.
Copper (CMCU3) also fell to as low as $6,230.75, piercing below its March low to hit its lowest levels since mid-2010.
The Australian dollar fell more than one percent to a four-year low, of $0.8417 (AUD=D4), and so did the Malaysian ringgit, which fell to 3.424 to the dollar (MYR=).
Adding salt to commodities' wounds, Chinese official manufacturing data suggested growth is slowing in China, demand from which has supported commodity prices for years.
Sliding oil and raw material prices have stirred deflation fears in the euro zone and Japan, cementing expectations that the European Central Bank and the Bank of Japan will take more steps to support their respective economies.
The dollar, taking advantage of such concerns, attracted bids against the euro and yen.
The euro (EUR=) was slightly weaker at $1.2437 after having fallen on Friday on data showing annual inflation in the euro zone cooled to five-year lows of 0.3 percent in November.
Many traders expect the ECB may signal further action later this week to ward off deflation.
The dollar also hit a seven-year high of 119.03 yen (JPY=) and the dollar index (.DXY), which measures the greenback against a basket of major currencies, rose to 88.451, a four-year high.
"Given that the Fed is going to raise rates next year, the monetary policy divergence should support the dollar," said Osao Iizuka, the head of FX trading at Sumitomo Mitsui Trust Bank.
The yen's fall and lower commodity prices helped Japanese shares, with the Nikkei (.N225) rising to seven-year highs. Mainland Chinese shares also gained, with Shanghai Composite Index (.SSEC) hitting a three-year high.
U.S. crude (CLc1) fell more than two percent to a five-year low of $64.10 per barrel, with the fall from June exceeding 40 percent.
Copper (CMCU3) also fell to as low as $6,230.75, piercing below its March low to hit its lowest levels since mid-2010.
The Australian dollar fell more than one percent to a four-year low, of $0.8417 (AUD=D4), and so did the Malaysian ringgit, which fell to 3.424 to the dollar (MYR=).
Adding salt to commodities' wounds, Chinese official manufacturing data suggested growth is slowing in China, demand from which has supported commodity prices for years.
Sliding oil and raw material prices have stirred deflation fears in the euro zone and Japan, cementing expectations that the European Central Bank and the Bank of Japan will take more steps to support their respective economies.
The dollar, taking advantage of such concerns, attracted bids against the euro and yen.
The euro (EUR=) was slightly weaker at $1.2437 after having fallen on Friday on data showing annual inflation in the euro zone cooled to five-year lows of 0.3 percent in November.
Many traders expect the ECB may signal further action later this week to ward off deflation.
The dollar also hit a seven-year high of 119.03 yen (JPY=) and the dollar index (.DXY), which measures the greenback against a basket of major currencies, rose to 88.451, a four-year high.
"Given that the Fed is going to raise rates next year, the monetary policy divergence should support the dollar," said Osao Iizuka, the head of FX trading at Sumitomo Mitsui Trust Bank.
The yen's fall and lower commodity prices helped Japanese shares, with the Nikkei (.N225) rising to seven-year highs. Mainland Chinese shares also gained, with Shanghai Composite Index (.SSEC) hitting a three-year high.
(0)
(0)