Stocks Linger As Oil Falls Below $46

By Ikenga Chronicles November 30, 2016

The refusal of members of OPEC to reconcile the differences on production cuts has caused oil price to linger below $50 after falling to $46 while a rally in metals fizzled. US stocks were little changed, with major indexes hovering near all-time highs.

A report by Bloomberg News, says the S&P 500 Index added 0.1 per cent, reversing an earlier loss, as gains in banks and healthcare stocks countered losses among commodity shares.

However, the objection raised by Iraq and Iran over the distribution of output reductions and Russia’s intention to boycott the crucial meeting with OPEC tomorrow is believed to be reason for the oil slide

Copper also slumped for the first time in seven days and the Bloomberg Dollar Spot Index was little changed after a two- day loss.  Herbert Perus, head of equities at Raiffeisen Capital Management in Vienna, which manages 30 billion euros ($32 billion) argued that the rand plunged after President Jacob Zuma survived a leadership threat.

“The oil price is shaky as well as oil-related companies.” he said

“We have a very important OPEC meeting and there’s a flow of expectations in front of this meeting.”

With the market giving just 30 per cent odds to an agreement to end the oil supply glut, according to Goldman Sachs Group Inc., pessimism about the make-or- break talks is helping to damp a commodities’ rally following Donald Trump’s surprise presidential election.

A hint on the US economy is expected to be known from a payroll report on December 2, after data on third-quarter growth beat forecasts.

Meanwhile, West Texas Intermediate crude slipped 3.8 per cent to $45.29 a barrel as of 10:40 a.m. in New York, after rising 2.2 per cent on Monday. While copper futures dropped 2.3 per cent on the London Metal Exchange, nickel lost 2.9 per cent while zinc declined 4.1 per cent.

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