Market and product

Oil failed to hold onto gains after Saudi Arabia repeated it’s ready to work with other producers to stabilize global markets, and other commodities tumbled, while a gauge of equities around the world halted a five-day rally.

Copper sank below $4,500 a metric ton for the first time since 2009 and soybeans also slid to a six-year low, leaving the Bloomberg Commodity Index at levels last seen in 1999. Russia’s ruble dropped the most versus a rallying dollar as currencies of raw-material-producing nations weakened. European government bonds tumbled amid a flurry of supply scheduled for this week.

While crude in New York briefly climbed above $42 a barrel following a report by the Saudi Press Agency on the scope for cooperation on prices, Barclays Plc said that didn’t reflect any policy shift by the biggest member of the Organization of Petroleum Exporting Countries, which is due to meet Dec. 4. Bloomberg’s index of commodities has tumbled about 23 percent this year, dragged down by slowing demand in China and a stronger dollar. Agricultural commodities face a new headwind after Sunday’s election of Mauricio Macri as Argentina’s president, which may unleash an estimated $8 billion in shipments of stored crops.

“It’s hard to see what else moved the price besides the Saudi statement, even though it’s exactly what Oil Minister al Naimi said last week,” said Giovanni Staunovo, an analyst at UBS AG in Zurich. “The OPEC meeting is approaching and participants might prefer to close their short positions.”

Saudi Oil Minister Ali al-Naimi said on Thursday the kingdom is working with members of OPEC and countries outside of the group to see a stable oil market. A short position is a bet an asset’s price will decline.

West Texas Intermediate crude futures fell 1.3 percent to $41.35 a barrel at 9:31 a.m. New York time. The MSCI All-Country World Index of equities slipped 0.2 percent, while the Bloomberg Dollar Spot Index added 0.2 percent. The Standard & Poor’s 500 Index was little changed after the gauge had its biggest weekly jump of the year.

Commodities

Gold for immediate delivery was down 0.7 percent at $1,070.97 an ounce. Assets in exchange-traded products backed by gold have fallen to the lowest since 2009. Money managers are holding a net-short position in the metal for first time since August as their long wagers shrunk to the smallest in seven years. Zinc lost 2.9 percent, giving up gains made on Friday after Chinese smelters announced plans to cut production.

The London Metal Exchange’s index of six industrial metals has plummeted 27 percent this year, the worst annual performance since the global financial crisis in 2008.

“Demand is still the key for commodities at the moment, and supply discipline and production cuts are uncertain,” said Helen Lau, analyst at Argonaut Securities in Hong Kong. “There’s a chance that local producers will continue to ramp up production and replace the cuts that have been made. Everyone still wants to maintain cash flow at these prices.”

Soybeans slid 1.5 percent. Argentinian farmers are hoarding as many as 22 million tons of the commodity, about one-third of last season’s record crop, according to Miguel Bein, the main economic adviser to presidential candidate Daniel Scioli, who conceded to Macri on Sunday following a runoff vote between the two.

Stocks

The S&P 500 was little changed at 2,088.69. Pfizer Inc. fell 2 percent after announcing a $160 billion merger with Allergan Plc. Lions Gate Entertainment Corp. dropped 4 percent after the film finale of “The Hunger Games” had the smallest debut of any in the series.

The Stoxx Europe 600 Index fell 0.5 percent lower and the MSCI Asia Pacific excluding Japan Index retreated 0.3 percent, with materials shares losing 0.7 percent. BHP Billiton declined 2.1 percent.

RWE AG declined 5.6 percent after a report that its chief executive officer is having trouble finding funding for growth. Credit Suisse Group AG dropped 1.4 percent after completing a share placement for 1.32 billion francs ($1.3 billion). Playtech Plc tumbled 8.2 percent after agreeing to terminate a merger agreement with Plus500 Ltd.

Currencies

Russia’s ruble weakened 1.3 percent, Chile’s peso slid 0.5 percent and New Zealand’s dollar lost 0.8 percent. A Bloomberg gauge of 20 developing-nation currencies declined for the first time in five days, falling 0.5 percent.

“Emerging markets are under pressure as U.S. raising interest rates in December is a done deal,” said Kenix Lai, a foreign-exchange analyst at Bank of East Asia Ltd. in Hong Kong. “The dollar will get stronger while China’s economic fundamentals haven’t shown any signs of improvement.”

The euro earlier sank to a seven-month low of $1.0601 after European Central Bank chief Mario Draghi said Friday that he and his fellow bank officials “will do what we must” to boost price growth.

Emerging Markets

The MSCI Emerging Markets Index dropped 0.3 percent after the biggest weekly gain in more than a month.

The Hang Seng China Enterprises Index fell for the first time in three days, sliding 0.7 percent. Guotai Junan International Holdings Ltd. tumbled 12 percent after the brokerage said its chairman and chief executive officer can’t be contacted.

The Shanghai Composite Index declined 0.6 percent after regulators gave the green light to initial public offerings following a five-month freeze. The China Securities Regulatory Commission has restarted IPOs for five companies to list on the Shanghai stock exchange and five in Shenzhen, according to a statement on its official microblog on Friday.

Argentine exchange-traded funds extended gains after Macri’s election victory. The Global X MSCI Argentina ETF rose 1.1 percent and Grupo Clarin SA, an Argentine media business, climbed 5.5 percent, heading toward the highest close since 2007.

Bonds

Government bonds across the euro-area fell at the start of a week of auctions of benchmark securities. The yield on Germany’s 10-year bund jumped five basis points to 0.53 percent. Italy’s 10-year rose three basis points to 1.53 percent.

Belgium started the glut with sales of 2025 and 2028 securities Monday that saw borrowing costs decline from previous auctions.

Treasuries were little changed following a two-week advance, with 10-year yields at 2.27 percent, according to Bloomberg Bond Trader data. The U.S. is scheduled to sell $26 billion of two-year notes Monday.

The likelihood of higher Fed rates by year-end is 72 percent, futures show. That’s the highest since August and up from 50 percent at the end of October. The calculation is based on the assumption that the effective fed funds rate will average 0.375 percent after the first increase.