S&P 500 falls as energy shares lead losses on oil drop

Most US stocks fell, pulling the S&P 500 Index down as energy companies slumped after oil reached a three-year low. The S&P 500 Index fell 0.3% to 2,012.10. The Dow rose 17.6 points (0.1%) to 17,383.84.

US crude futures fall to 3-year low on Saudi price cut

WTI  crude  dropped  to  a  three-year  low  as  Saudi  Arabia  cut  prices  for exports to US  customers amid speculation stockpiles increased. Brent for December settlement declined US$1.96 (2.3%) to US$82.82 a barrel.

US exports decline in sign of global slowdown

Trade deficit in the US  widened in September as  exports slumped from a record.  The  gap  grew  by  7.6%  to  US$43bn  in  September  (US$40bn  in August), Commerce Department figures showed.  The median forecast in a Bloomberg  survey  called  for  the  trade  deficit  at  US$40.2bn.  Exports decreased  1.5%  to  US$195.6bn  in  September  (US$198.6bn  in  August). Imports totaled US$238.6bn, the same as in August.

EU cuts growth outlook as inflation seen below ECB forecast

The  European  Commission  cut  its  growth  forecasts  for  the  euro  area  as the bloc’s largest economies struggle to put the ravages of the debt crisis behind them.  GDP  in  the  18-nation region  will  rise by  0.8%  in  2014  and 1.1%  in  2015,  down  from  projections  for  1.2%  and  1.7%  in  May,  the commission said. It lowered its projections for Germany, and said inflation in the euro area will be even weaker than the ECB predicts.

EU urges use of ‘fiscal space’ as Germany upholds budget goal

The  European  Union’s  executive  arm  urged  member  states  to  use  their budgetary  leeway  to  boost  the  economy  as  Chancellor  Angela  Merkel sticks to her balanced-budget goal  even as economic growth slows. The European  Commission  cut  its  growth  forecasts  for  Germany  to  1.3%  in 2014,  1.1%  in  2015  and  1.8%  in  2016.  The  commission  previously predicted growth of 1.8% in 2014 and 2% in 2015.

EU cuts Italy GDP forecasts, says exports needed

The  European  Commission  cut  Italy’s  economic  forecasts  for  2014  and 2015,  saying  the  country  will  need  to  rely  on  an  increase  in  exports  to return to growth in 2015. The country’s economy will contract 0.4% in 2014 and expand 0.6% in 2015, down from a May forecast of 0.6% expansion in 2014 and a 1.2% increase in 2015, the commission said.

UK growth forecasts raised by European Commission on spending

The European Commission raised its growth forecasts for the UK  and said momentum  in  the  economy  will  continue  amid  “robust”  spending  by consumers  and  businesses.  GDP  will  grow  3.1%  in  2014  and  2.7%  in 2015, up from projections of 2.7% and 2.5% made in May, the commission said. It sees growth slowing to 2.5% in 2016.

RBA keeps record-low interest rate as Aussie stays high

Australia’s  central  bank  kept  its  key  interest  rate  at  a  record  low  as  the sustained  strength  of  the  currency  slows  an  economic  transition  and hampers  hiring.  Reserve  Bank  of  Australia  Governor  Glenn  Stevens  left the  overnight  cash  rate  target  at  2.5%  for  a  15th  month.  Stevens  wants growth to switch to domestic drivers as a mining investment boom winds down, easing labor demand.

Source: Bloomberg