Morning Briefing: Bumpy ride continues for markets as China weighs

Morning Briefing: Bumpy ride continues for markets as China weighs

Morning Briefing: Bumpy ride continues for markets as China weighs Bumpy ride continues for markets as China weighs
The latest wave of concern over the Chinese economy has led to a second day of turbulence for the markets so far, although they are more stable than during the previous session.

Following weak data which prompted a global sell-off with Shanghai down 7 per cent Monday and an early halt to the session, the People’s Bank of China announced that it had injected 130 billion yuan (U$19.9 billion) into the financial system.

Asian markets remained volatile and closed with losses, led by Sydney which closed down 1.63 per cent.

European markets are also lower following Asia’s lead and new data showing the Eurozone’s inflation stayed at 0.2 per cent in December according to official estimates. Energy costs declined while food, alcohol and tobacco prices gained in the month.

Wall Street and Toronto are expected to open lower.
 
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North America (previous session)
US Dow Jones 17,148.94 (-1.58 per cent) -4.13 per cent -3.78 per cent
TSX Composite 12,927.15 (-0.64 per cent) -3.23 per cent -10.18 per cent
 
Europe (at 6.00am ET)
UK FTSE 6,083.57 (-0.16 per cent) -2.48 per cent -5.20 per cent
German DAX 10,178.76 (-1.02 per cent) -5.33 per cent +7.45 per cent
 
Asia (at close)
China CSI 300 3,478.78 (+0.28 per cent) -5.41 per cent -4.47 per cent
Japan Nikkei 18,374.00 (-0.42 per cent) -5.80 per cent +5.54 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
36.91
(-0.41 per cent)
36.89
(-0.89 per cent)
1076.60
(+0.13 per cent)
U$0.7172
 
Aus. Dollar
U$0.7171
 
Oil lower, gold gains
Oil prices reversed overnight following some gains Monday. Concern over Chinese demand have hit prices along with a stronger US dollar and analysts assessed that tension between Saudi Arabia and Iran is unlikely to affect production.

Meanwhile gold producers continue to see prices rise as investors opt for the safe haven. If equities remain lower during Tuesday’s session then analysts expect gold prices to rise further. The gains may be short-lived as rising US interest rates generally push prices lower.