The probe of Libor manipulation is proving to be the tip of the iceberg as inquiries into assets from derivatives to foreign exchange show that if there’s a chance to rig benchmark rates in world markets, someone is usually willing to try.
U.S. stocks fell, extending a weekly loss, as the International Monetary Fund cut its 2014 American growth forecast and warned that tapering of Federal Reserve stimulus may be risky if not handled properly. Treasuries and commodities rise, while the yen rallied.
The International Energy Agency trimmed demand forecasts for OPEC’s crude in the second half of the year amid signs of slowing growth in China as output from the producer group rose to a seven-month high.
West Texas Intermediate crude dropped as the Bank of Japan unexpectedly left a lending program unchanged, bolstering concern that central banks are growing reluctant to add more stimulus. WTI’s discount to Brent crude shrank to the narrowest level in more than two years.