Asian shares edge down

Thursday, 4 December 2014 00:00 - - {{hitsCtrl.values.hits}}

TOKYO, (Reuters): The dollar marked a fresh seven-year high against the yen on Wednesday, which helped lift the Nikkei to a similar closing record, while oil prices recovered on news of a drop in US supply. MSCI’s broadest index of Asia-Pacific shares outside Japan edged down about 0.2%. But Japan’s Nikkei stock average finished 0.3% higher, off its session highs but still closing at its highest level since July 2007. Financial spreadbetters expected Britain’s FTSE 100 to open 17 to 20 points higher, or up 0.3%; Germany’s DAX to open 35 points higher, or up 0.4%; and France’s CAC 40 to open 9 points higher, or 0.2%. A pair of surveys showed that China’s services sector grew slightly faster in November, though they did not banish fears of the Chinese economy softening. Wall Street posted solid gains on Tuesday, with the Dow Jones industrial average closing at a record high, boosted by gains in energy shares as investors searched for bargains in the sector. US crude was off its Asian session highs but still rose 0.5% to $ 67.21 a barrel, after industry group American Petroleum Institute (API) released data on Tuesday showing US crude stocks fell 6.5 million barrels last week. Brent crude added 0.3% to $ 70.73. Brent and US crude touched five-year lows on Monday in recently volatile trade amid massive oversupply. Saudi Arabia would only consider cutting production if other countries, including non-OPEC producer Russia, joined in limits, former Saudi intelligence chief Prince Turki bin Faisal said on Tuesday. While economists fear the sharp drop in global energy prices could magnify deflationary forces in some countries, both New York Fed President William Dudley and Vice Chair Stanley Fischer this week painted a mostly rosy outlook for the US economy and welcomed cheaper oil.

Brent rebounds towards $ 71 in turbulent oil market

LONDON, (Reuters): Brent oil rose towards $ 71 a barrel on Wednesday, recovering some of its losses from the previous session as a turbulent market searched for a price floor after a nearly 40% fall since June. Trade in oil has been choppy since the Organization of the Petroleum Exporting Countries (OPEC) said last week it would not lower output despite an oversupplied market.Brent hit a five-year low below $ 68 a barrel on Monday after averaging around $ 110 a barrel in 2011 to 2013.

An offshore oil platform is seen in Huntington Beach, California - REUTERS

“There has been a technical bounce back from the very strong declines that we have seen in the lead-up to and after the OPEC meeting,” said Harry Tchilinguirian, an oil analyst at BNP Paribas in London. “Seeing some rebound is normal, but the downtrend remains in place. It is possible that we can go down further.”Brent for delivery in January rose 21 cents to $ 70.75 a barrel by 1016 GMT after falling by $ 2 on Tuesday. It was slightly off a day high of $ 71.46. US crude for January delivery rose to $ 67.33 a barrel, off the day’s high of $ 67.97 but up 45 cents from the previous session, when prices dropped by more than $ 2.OPEC’s oil supply fell by 340,000 barrels per day (bpd) in November as a recovery in Libya faltered, a Reuters survey found, although a lack of deliberate cutbacks by Saudi Arabia and other key members underlined their focus on defending market share. The kingdom will consider cutting production only if other countries, including non-OPEC producer Russia, also take part in cuts, former Saudi intelligence chief Prince Turki bin Faisal said on Tuesday. Chart analysts warned that the months-long rout may not be over and that US crude could plunge towards $ 50 per barrel if a handful of tenuous support levels give way after a period of consolidation.