Prices for crude oil West Texas Intermediate and Brent fell today, came under pressure on Japan data, which indicated a fall in GDP in the last quarter. Recall that in the 3rd quarter of 2014 Japan's GDP contracted by 1.6% in annual terms. Analysts on average had forecast GDP growth of 2.1%. Thus, the Japanese economy - the third largest economy in the world - suddenly slipped into recession in July-September of 2014, a decrease in the second quarter in a row. According to revised data, in the second quarter decline of the Japanese economy reached 7.3% and not 7.1%, as previously reported. GDP decline in April-June was the highest in five years. The fall in GDP at the end of two consecutive quarters indicates technical recession in the economy.

The focus of investors is also the situation in the countries of OPEC, whose representatives in recent days have stepped up negotiations on the eve of the meeting of 27 November. Oil Minister of Saudi Arabia and Kuwait are against reducing production, while Libya, Venezuela, Ecuador and insist on taking measures to prevent a further fall in prices. Experts note that the sharp decline in oil production quotas that can normalize the balance of supply and demand and to stabilize prices, it seems unlikely. In JPMorgan believe that oil prices could fall to $ 70 a barrel and even touch the level of 65 dollars in early January next year. Such a fall in oil prices would happen if at the November meeting, OPEC decides to cut production quotas.

Pressure on prices also have data on manufacturing activity from the New York Fed. According to the report, the manufacturing index this month rose to 10.16 points against 6.17 points in October. Note the previous value has not been reviewed. Economists had forecast growth of the index to the level of 12.1 points. In general, the sub-indices showed themselves as follows: selling prices index in November fell to 0.00 against 6.82 in October, the employment index fell to 8.51 against 10.23 in October, and the new orders index rose to 9, 14 -1.73. "The general business conditions index shows that business activity in New York in November, producers continues to grow somewhat more rapidly than in the past month. Nevertheless, in October and November, the index readings indicate a reduced rate of growth compared to the period from May to September, when the index was the average level of about 20 points, "- said in a report.

Cost January futures on US light crude oil WTI (Light Sweet Crude Oil) fell to 75.24 dollars a barrel on the New York Mercantile Exchange.

January futures price for North Sea petroleum mix of mark Brent fell $ 0.74 to $ 78.49 a barrel on the London exchange ICE Futures Europe.

Gold prices have not changed today, while remaining close to two-week high, as the decline in global stocks amid disappointing data on Japan was offset by the strengthening of the US currency.

As reported earlier, Japan's GDP for the third quarter of this year fell by 1.6% after falling 7.3% in the second quarter. Thus, the economy entered a phase of recession. Compared to the previous quarter of this year, the national economy contracted by 0.4%. Consumer activity for the period rose by 0.4% after a decline of 5% in the last quarter. GDP decline was a surprise, as most experts predicted a slight increase at the level of 1.5-2%. Earlier it was reported that according to these data, Prime Minister Shinzo Abe will decide whether to postpone scheduled for October 2015 increase in the consumption tax from 8 to 10%.

Meanwhile, experts point out that, despite the recent rise in gold prices, they probably would still be vulnerable in the short term, amid signs that the strengthening of the recovery of the US economy will force the Fed to start raising interest rates earlier and more sharply than expected.

"When the price of gold fell below $ 1,180, was opened a lot of short positions, and when the quotes again risen above this level began covering these positions. The market is still considered an important marker $ 1,180 if she hold out, the price can go up to $ 1,230, "- said a trader in Hong Kong.

Market participants are also waiting for the publication of minutes of the last meeting of the US Federal Reserve and the data on consumer price inflation, leaving on Wednesday and Thursday respectively. If no protocol will signal the strengthening tendency to tighten policy, and inflation will decline, gold is likely to continue strengthening.

We also learned that the outflow of funds from the largest secured gold traded exchange-traded fund SPDR Gold Trust stopped on Friday after an eight-day decline, but its reserves are still close to a six-year low (now the volume of reserves is 720.62 tonnes).

The cost of December gold futures on the COMEX today fell $ 1.5 to 1184.00 dollars per ounce.

Oil prices are again under pressure in today's session with Brent Crude trading -1.16% at USD78.49 a barrel and WTI Crude losing -0.79% trading at USD75.22 as concerns about global economic growth were fuelled by Japan, the world's fourth-biggest crude importer, unexpectedly slipping into recession. Weakening global demand and no indications that the OPEC will cut its output weighed on oil prices in recent months.

Gold, currently trading around USD1187.00 a troy ounce is slightly positive in today's session after reaching a new two-week high earlier. Investors are awaiting key data on U.S. economy (Industrial Production 14:15 GMT) for further indications on future growth of the wold's largest economy and its impact on the FED's interest rate policy.

GOLD currently trading at USD1186.700

BLOOMBERG

English Says Kiwi in Mid-to-High 70s Sustainable for New Zealand

New Zealand Finance Minister Bill English said a U.S.-kiwi exchange rate in the "mid-to-high 70s" is sustainable for the economy as he seeks steady growth and moderate business cycles.

"We have that opportunity ahead of us over the next three or four years of 3 percent growth," English said in an interview with Bloomberg TV from the Group of 20 summit in Brisbane yesterday.

Source: http://www.bloomberg.com/news/2014-11-16/english-says-kiwi-in-mid-to-high-70s-sustainable-for-new-zealand.html

BLOOMBERG

Ruble Less Respected Than Rand as Volatility Hits Record

Russia's ruble is the most volatile relative to other currencies in at least nine years, hurting the country's already battered economy as the unprecedented price swings drive investors away.

One-month implied volatility on the ruble, which reflects traders' expectations for future swings in the exchange rate, reached 33 percent on Nov. 10, almost double that of Brazil's real, the second-most volatile among 41 major currencies tracked by Bloomberg.

Source: http://www.bloomberg.com/news/2014-11-16/ruble-less-respected-than-rand-as-volatility-hits-record.html

REUTERS

Oil price drop could have perverse braking effect on economy

A falling oil price could hamper rather than aid economic recovery as lower export revenues for energy producers will mean fewer petrodollars propping up markets and keeping a lid on the cost of capital.

Research by BNP Paribas published this week found energy exporting countries are set to pull more money out of world markets than they put in for the first time in almost two decades.

Source: http://www.reuters.com/article/2014/11/07/global-economy-petrodollars-idUSL6N0SX4Q820141107