Brent at 11-month high, yields end flat

By Rodrigo Campos NEW YORK (Reuters) - Oil prices hit their highest in nearly a year on Tuesday on lower supply bets and Treasury yields tightened from 10-month highs after strong demand at an auction. Stocks, meanwhile, edged higher, led by Asia, with eyes on U.S. earnings and U.S

Reuters January 13, 2021 04:06:31 IST
Brent at 11-month high, yields end flat

Brent at 11month high yields end flat

By Rodrigo Campos

NEW YORK (Reuters) - Oil prices hit their highest in nearly a year on Tuesday on lower supply bets and Treasury yields tightened from 10-month highs after strong demand at an auction.

Stocks, meanwhile, edged higher, led by Asia, with eyes on U.S. earnings and U.S. President-elect Joe Biden's inauguration next week.

The 10-year U.S. yield touched its highest since March but tightened to near flat on the day after a Treasury auction was well bid. The yield had risen sharply this year on expectations of a massive stimulus package from the incoming Democratic administration.

Brent crude prices hit their highest since February as tighter supply and expectations of a drop in U.S. inventories offset concerns over rising COVID-19 cases globally. Saudi Arabia said it plans to cut output by an extra 1 million barrels per day in February and March.

"Saudi Arabia in particular is ensuring, through its additional voluntary production cuts, that the market is undersupplied," said Eugen Weinberg of Commerzbank.

Brent was at $56.56, up 1.62% on the day, while U.S. crude recently rose 1.76% to $53.17 per barrel.

On Wall Street, stocks fluctuated near unchanged for the session, not far from record highs. The Dow rose 60 points, or 0.19%, to 31,068.69, the S&P 500 gained 1.58 points, or 0.04%, to 3,801.19 and the Nasdaq Composite added 36.00 points, or 0.28%, to 13,072.43.

The pan-European STOXX 600 index rose 0.05% and MSCI's gauge of stocks across the globe gained 0.18%.

Emerging market stocks rose 0.29%, while Nikkei futures rose 0.52%. Mainland Chinese shares gained 2.2% overnight to close at their highest in over five years.

Democrats said they will give Republican President Donald Trump one last chance on Tuesday to leave office days before his term expires or face an unprecedented second impeachment over his supporters' deadly Jan. 6 assault on the U.S. Capitol.

An impeachment trial could proceed even after Trump leaves office on Jan. 20. Some Democrats have expressed concern that a trial could hamper Biden's agenda, slowing confirmation of his appointees and distracting from legislative priorities such as a new coronavirus relief package.

"Even if (additional stimulus) is delayed, it's going to be a matter of days, maybe weeks, not months. The question is the shape and form of it," said Keith Buchanan, portfolio manager at GlobAlt in Atlanta.

Benchmark U.S. government 10-year debt last rose 1/32 in price to yield 1.1325%, from 1.134% late on Monday. The yield hit 1.187% earlier in the session.

The U.S. dollar was down a day after hitting its highest since December, and the tighter Treasury yields pushed the greenback down further.

The dollar index fell 0.463%, with the euro up 0.45% to $1.2204.

The Japanese yen strengthened 0.49% versus the greenback at 103.75 per dollar, while the British pound was last trading at $1.3665, up 1.12% on the day as comments from the Bank of England's governor on the viability of negative interest rates dampened bets for subzero rates in Britain.

Spot gold added 0.6% to $1,855.46 an ounce. Silver gained 2.49% to $25.54.

Bitcoin last fell 4.01% to $34,035.14.

(Reporting by Rodrigo Campos; additional reporting by Devik Jain and Medha Singh in Bengaluru, Saqib Iqbal Ahmed, Laura Sanicola, Karen Brettell and Herbert Lash in New York and Alex Lawler in London; Editing by Dan Grebler and Jonathan Oatis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.