Yen Drops on Trade Data as Oil Falls

Posted by Charles Gunning

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The yen weakened after Japan’s exports trailed estimates, while oil slid below $100 a barrel as American stockpiles grew more than forecast. U.S. stocks were little changed while European shares rose as earnings at Royal Philips (PHIA) NV and Akzo Nobel AG beat estimates.

The yen lost 0.4 percent to 98.15 per dollar at 2:28 p.m. in New York while the U.S. currency rose against 15 of 16 major peers. The Standard & Poor’s 500 Index (SPX) fluctuated near the 1,745 level after reaching a record last week. The Stoxx Europe 600 Index increased 0.3 percent for an eighth straight gain, the longest rally this year. Ten-year Treasuries snapped a three-day advance and European corporate bond risk rose from a 3 1/2-year low. Oil lost 1.6 percent to help lead commodities lower.

The Bank of Japan will continue pumping cash into the economy to spur inflation, Governor Haruhiko Kuroda said today, after data showed exports increased less than forecast last month. The Federal Reserve won’t taper bond purchases until March because the government shutdown slowed fourth-quarter growth, according to a Bloomberg survey. Existing U.S. home sales fell in September for the first time in three months.