Futures fell for the first time in three days, heading for a weekly drop, as Asian equities and U.S. stock index futures slid on speculation Group of 20 leaders will fail to resolve trade and currency imbalances. The dollar was at a six-week high against the euro before reports that may show Europe’s economic growth is slowing.
“The key issue that’s been around since post the global financial crisis is confidence,” said David Taylor, a market analyst at CMC Markets Ltd. in Sydney. “At this point in time there are still plenty of question marks and the market is sensitive. If we start to see any signs of consistent strength coming from the U.S. dollar we’re going to see a bit of correction all around.”
Crude for December delivery fell as much as $1.56, or 1.8 percent, to $86.25 a barrel in electronic trading on the New York Mercantile Exchange. It was at $86.49 at 11:40 a.m. Singapore time. Yesterday, the contract was unchanged at $87.81, matching the highest settlement since Oct. 9, 2008.
The MSCI Asia Pacific Index lost 0.9 percent, set for its third weekly drop in four. Standard & Poor’s 500 Index futures slid 0.2 percent.
The dollar rose versus the 16-nation euro before a report that may show gross domestic product in the euro area increased 0.5 percent in the third quarter, after expanding 1 percent in the previous three months, according to a Bloomberg News survey. A rising dollar tends to reduce the appeal of raw materials, which are priced in the currency.
OPEC Supply
Oil has lost 0.4 percent this week, paring gains this year to about 9 percent. Prices rallied 78 percent in 2009.
Compliance within the Organization of Petroleum Exporting Countries to production targets fell last month as countries including Nigeria and Angola pumped more oil. The group is responsible for 40 percent of the world’s crude supply.
Daily output from the 11 OPEC members bound by quotas, all except Iraq, rose 163,600 barrels a day to 26.89 million barrels a day in October, the group’s Vienna-based secretariat said yesterday in a monthly report. That indicates compliance of 51 percent compared with a revised 55 percent for September.
Brent crude for December settlement fell as much as $1.29, or 1.5 percent, to $87.52 a barrel on the ICE Futures Europe exchange in London. The contract expires on Nov. 15. The more actively traded January futures were down $1.20 at $87.90.
