Morning Briefing: Chinese data weakens global markets

Morning Briefing: Chinese data weakens global markets

Morning Briefing: Chinese data weakens global markets Chinese data weakens global markets
Global stock markets have been hit by some more weak data from China. Trade figures showed a 25.4 per cent drop in exports in US dollar terms while imports were down 13.8 per cent. The drop was larger than expected and Reuters says it was the largest since 2009.

Shanghai managed slim gains for equities on expectation of stimulus but most Asian markets closed with losses.

The poor sentiment has spread to Europe with major indexes all trading with losses so far this morning. The ECB will be meeting this week.

Wall Street and Toronto are not expected to escape the doom with both set to open lower after gains in the previous session.
 
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North America (previous session)
US Dow Jones 17,073.95 (+0.40 per cent) +6.53 per cent -4.38 per cent
TSX Composite 13,383.60 (+1.29 per cent) +6.77 per cent -10.49 per cent
 
Europe (at 5.30am ET)
UK FTSE 6,130.51 (-0.84 per cent) +7.75 per cent -11.30 per cent
German DAX 9,645.87 (-1.36 per cent) +7.42 per cent -16.49 per cent
 
Asia (at close)
China CSI 300 3,107.67 (+0.09 per cent) +4.85 per cent -10.66 per cent
Japan Nikkei 16,783.15 (-0.76 per cent) -1.30 per cent -11.53 per cent
 
Other Data (at 6.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
40.62
(-0.54 per cent)
37.57
(-0.87 per cent)
1275.40
(+0.90 per cent)
U$0.7494
 
Aus. Dollar
U$0.7436

$50 oil weighed by analysts
It was only a few weeks ago that analysts were talking of a $20 or even $10 barrel but now there are talks of $50. The recent rally may not be a definite sign of prolonged recovery but with OPEC and other producers talking about stabilization measures things are at least looking more positive. Oil industry consultancy PIRA says that the Latin American producers are looking at $50, the figure also considered now by Morgan Stanley and RBC Capital Markets. The figure is seen as the minimum level to avoid severe credit issues for many producing nations.
 
Gold bullion is gaining
The criticism of Canada’s decision to sell off almost every ounce of gold reserves is only likely to intensify as prices increase. Michael Howell of Cross Border Capital says that under-pressure liquidity is fuelling the interest in bullion, with prices potentially reaching U$2000 per ounce by mid-2017. In an article for CityAM.com Howell says that central bank liquidity in the US is set to fall which will boost demand for gold bullion.