Global stock rally stalls as oil trades below $53

Sydney - Global equities declined amid dwindling volumes, following a slide in US stocks, and crude oil prices held losses amid an unexpected increase in supplies.

European stocks edged lower, led by miners, and US stock futures stagnated after the Dow Jones Industrial Average failed to make progress toward 20 000 on Wednesday.

The MSCI Asia-Pacific Index headed for a one-month low and oil traded below $53 a barrel after data showed US stockpiles expanded for the first time in five weeks.

The Bloomberg Dollar Spot Index recovered from Wednesday’s decline.

Global equities are taking a breather following a rally triggered by Donald Trump’s surprise election victory in November, with trading volumes ebbing as year-end holidays approach.

The Treasuries market has steadied following a selloff that took the 10-year yield to the highest since 2014, with the rate holding in a 7 basis point range this week.

"Moderate losses on Wall Street, underpinned by the fall in oil prices, are providing little inspiration for Asian markets today," said Jingyi Pan, a strategist at IG Asia in Singapore.

"Thin volumes are also providing little momentum for trade into the end of the year."

Stocks

The Stoxx Europe 600 Index lost 0.1% by 9:31 in London, retreating from the year’s highest intraday level on Wednesday. Japan’s Topix and Nikkei indexes slid 0.1% at the close in Tokyo, with both down for a second day.

The S&P 500 Index futures fell less than 0.1%. The underlying gauge dropped 0.3% on Wednesday in New York, while the Dow was off 0.2% and closed at 19 941.96.

Commodities

West Texas Intermediate crude oil stabilised at $52.50 a barrel on Thursday after dropping Wednesday by 1.5%, its first slide in a week. Gold was little changed at $1 131.8 an ounce after falling in the past two days.

Currencies

The Bloomberg Dollar Spot Index was little changed after falling 0.1% on Wednesday, but is still on course for a gain of more than 3% this year. The yen lost 0.1% to 117.64 per dollar after appreciating 0.3% on Wednesday. 

The euro climbed 0.3% to $1.0450.

The New Zealand dollar was up 0.1%after the country’s gross domestic product report, while the Swedish krona added another 0.3% after gaining in Wednesday after the Riksbank extended its quantitative easing program into next year.
 
Bonds

Treasuries were little changed at 2.54%. Japan’s 10-year rate was 1 basis point lower at 0.05%. German bunds of the same maturity were at 0.25% on Wednesday.