Brent crude oil closed at a five-week high: Mangal Keshav
Gold declined, as investors reacted negatively to central-bank moves that only served to highlight the global economy’s fragile state. China's central bank cut interest rates for the second time in a matter of weeks, stepping up efforts to bolster its struggling economy.
Benchmark one-year lending rate was cut 31bps to 6% and the one-year deposit rate was reduced by 25bps to 3%. European Central Bank cut rates by 25bps to a record low 0.75% following a round of poor of economic data’s.
Bank of England, whose rates are already at a record low of 0.5%, said it would restart its printing money and buy 50bn pounds of assets with newly created money to help its economy out of recession.
The International Monetary Fund has urged the US to quickly remove the uncertainty over the path of fiscal policy, which is set to tighten abruptly at the start of next year without congressional action - Reuters.
Denmark's central bank cut interest rates by 25bps; shadowing the ECB's action, in a historic move that put one of its secondary rates into negative territory for the first time. Kenya ended its 9-months long hawkish stance with a bigger than expected 150bps rate cut - Reuters.
Copper & other metal prices declined, as Euro slumped to a one-month low against the dollar while interest rate cuts in Europe and China reinforced concerns about slowing demand.
Crude futures declined, as a weak service sector, sluggish retail sales data and a stronger dollar countered falling oil stockpiles and economic stimulus measures taken by central banks in China and Europe. Brent crude oil closed at a five-week high on worries about tighter supplies following a lockout of striking oil workers in Norway and hopes that some policy-easing steps by central banks would improve oil demand.
India has started loading Iranian crude in tankers owned by the Islamic Republic, industry sources said, marking a shift from a decades-old policy that required state-run refiners to transport oil in vessels owned by local shipping companies -
Natural gas futures closed at a fresh 6-month high, ahead of government data that are expected to show a much smaller increase in US gas stockpiles than usual for this time of year. Natural gas inventories are expected to increase by 46-50bn cubic feet, actual data will be released by EIA later in the day.