U.S. crude edges up in early Asian trade amid market gloom

Investors were weighing the latest company earnings and economic news from of China.

The Dow Jones fell more than 360 points – the fifth day of triple-digit losses this year – to 16,151.41. The Standard & Poor’s 500 index lost 19 points, or 1 percent, to 1,918.

China’s exports rose 2.3 percent in December from a year earlier in yuan terms, reversing a 3.7 percent drop in November, the Finance Ministry reported.

“It’s not about deteriorating fundamentals: The USD and non-fundamental factors continue to drive oil prices”, a research team at Morgan Stanley, led by Adam Longson, said in a note Monday.

A bearish report from the U.S. Energy Information Administration on Tuesday underlined concerns that demand is stagnating as more supply comes to market. It had been up more than 3 percent in the first hour of trading, but stumbled on a report showing that demand for fuels slipped last week.

Nigeria’s junior oil minister Emmanuel Ibe Kachikwu said in Abu Dhabi he expected an extraordinary meeting of the global oil cartel in “early March” to discuss the continued plunge in prices. Williams Cos. tumbled $2.58, or 15.6 percent to $13.95.

YEN CLIMB: The Wall Street jitters sent Japanese shares lower including giant exporters such as automakers Toyota and Honda, as well as Bridgestone and trading companies. It fell 69 cents, or 2.2 percent, to $30.86 a barrel in London. BorgWarner lost $4.20, or 11.2 percent, to $33.20. The last time the market had one was last August. The data is regarded as an indicator of capital spending and fell more than market expectations for a 7.9 per cent decline. Indonesia’s central bank is also set to announce its monetary policy decision later in the day. While the French CAC 40 Index has surged up by 1.4 percent, the U.K.’s FTSE 100 Index and the German DAX Index are both up by 1.1 percent. The stock gained $1.82 to $43.81. Tracking the movement in the US crude benchmark, the United States Oil Fund LP (ETF) (NYSEARCA:USO) trades up by 0.76% in pre-market trade today.

Traders said the mood on many markets was still shaky after an extremely volatile start to 2016, driven by worries over conflict in the Middle East, China’s finances and the fallout from low oil prices. The data suggest a weakening in the yuan may be helping boost demand for Chinese products, providing welcome support for the slowing economy. The Shanghai Composite yoyo’d in and out of negative territory and closed down 2.4 percent at 2,949.60. South Korea’s Kospi added 1.4 percent to 1,916.57. Shares in Southeast Asia and New Zealand also were higher. The benchmark 10-year US Treasury yield plumbed its lowest levels since late October as investors sought safety in government debt. Trading in foreign exchange markets was subdued. It was buying 117.38, down about 0.2 per cent. The euro edged up about 0.1 per cent to $1.0889.