Oil Prices Fall to 3 Month Low

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From Trading Economics: Oil prices dropped to their lowest in three months on Monday amid revived concerns about oversupply, as investors remain skeptical that OPEC will reach a deal to cut production. The US crude dropped by 2.5 percent to $42.3 per barrel and the Brent crude was down 2.4% to $43.7 a barrel around 5:15 PM London time. The Crude Oil changed -2.81% during the last week, -13.51% during the last month and +4.52% during the last year. Historically, Crude oil reached an all-time high of 145.31 in July of 2008 and a record low of 1.17 in February of 1946.

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In European Equity Markets stocks rose sharply on Monday, underpinned by gains among bank sector stocks, while debt collector Intrum Justitia rose to a record high after a merger deal and Siemens rose after a software acquisition. The Europe's STOXX 600 index rose 1.1 percent. Commerzbank rose 7 percent after Handelsblatt reported that the would be interested in buying smaller rival Oldenburgische Landesbank from Allianz. Swedish debt collector Intrum Justitia rose 16 percent after it said it would merge with Norway-based Lindorff. Siemens rose 1.8 percent after Europe's biggest industrial group agreed to buy U.S.-based Mentor Graphics in a $4.5 billion cash deal that will further enhance its industrial software capabilities.

In Currency Markets the dollar rose to an 11-month high against a basket of major currencies on Monday, in step with a jump in U.S. bond yields as traders bet fiscal and trade policies under a Donald Trump administration would stoke inflation. The euro shed 1.2 percent at $1.072 after hitting its lowest level against the greenback since Dec. 3, 2015, while the dollar gained 1.6 percent at 108.30 yen after rising to its strongest level since June 23.  The yuan has weakened on worries over Trump and the Republican-controlled Congress may slap tougher restrictions on Chinese imports. The Chinese currency was down 0.5 percent against the dollar at 6.8596 yuan. The dollar index was 1.1 percent higher at 100.16 after touching 100.20 earlier Monday.

In Commodities Markets  oil fell more than 2 percent to its lowest in three months on Monday, as the prospect of another year of oversupply and weak prices overshadowed chances OPEC will reach a deal to cut output. Brent fell 2.5 percent, to $43.64 a barrel. U.S. crude fell 2.6 percent, to $42.29 per barrel. Both contracts were down for a third day in a row to their lowest levels since Aug. 11.  Spot gold hit its lowest since June 3 at $1,211.08 an ounce and was last down 1.1 percent at $1,211.79. Silver fell 3.3 percent to its lowest since June at $16.75 an ounce, tracking gold's downside. Platinum was down 1.3 percent at $928, while palladium rose 1.8 percent to $682.22 an ounce.

In US Equity Markets  the S&P 500 and the Dow Jones industrial average pared early gains and were little changed on Monday as investors looked for more clarity on President-elect Donald Trump's policies. The Dow Jones industrial average was up 0.03 percent, at 18,852.39, the S&P 500 was down 0.2 percent, at 2,160.14 and the Nasdaq Composite index was down 0.64 percent, at 5,203.84. Eight of the 11 major S&P sectors were lower, with the technology index's 2.17 percent fall leading the decliners. Apple fell 3.9 percent. The financial index rose 1.8 percent, with Goldman Sachs and JPMorgan providing the biggest boost. Harman International rose 25.2 percent after Samsung Electronics announced an $8 billion deal to buy the company.

In Bond Markets  U.S. yields have lifted European and Japanese yields as those economies continue to struggle with weak growth and inflation. Yields on 30-year bonds rose to a high of 3.067 percent, a peak not touched since December. Benchmark 10-year notes saw their yields rise to 2.302, also the highest mark since December. The yield on 10-year German Bunds was 0.368 percent, the highest since late January, and the yield on 10-year Japanese government bonds was -0.016 percent, hovering at its highest level in two months.

Source: Institute of Trading and Portfolio Management