Morning Briefing: Commodities strengthen, equities mixed

Morning Briefing: Commodities strengthen, equities mixed

Morning Briefing: Commodities strengthen, equities mixed Commodities strengthen, equities mixed

Oil prices are higher Wednesday as expectation grows for an OPEC output cap extension. Meanwhile, gold prices continued rising overnight to hit a 5-month high as geopolitical tension increases.

Equity markets are mixed so far with most in Europe gaining despite apparent fresh terrorist activity in Germany; two prominent Asian markets are lower.
]
North Korea’s warning of a nuclear strike on the US aircraft carrier heading to the Korean Peninsula has raised tension in the region but Seoul’s KOPSI closed higher along with Sydney and Hong Kong.

There was a weaker session for mainland China with the Shanghai index reacting so softer producer price data and calls from President Trump for Beijing to sort out North Korea. Tokyo’s Nikkei also closed lower as the yen strengthened.

European markets are trending higher, shrugging off a suspected terrorist attack on a sports team’s bus in Germany as they travelled to a game. One person was injured.

Mixed regional data coupled with some strong corporate earnings have kept most major European bourses in positive territory. BoE governor Mark Carney speaks later.

Wall Street and Toronto are expected to open higher. The Canadian interest rate decision, monetary report and home price index are due. US oil inventory data is due.
 

 

Latest

1 month ago

1 year ago

 

North America (previous session)

US Dow Jones

20,651.30 (-0.03 per cent)

-1.20 per cent

+16.53 per cent

TSX Composite

15,727.11 (-0.02 per cent)

+1.42 per cent

+15.80 per cent

 

Europe (at 5.00am ET)

UK FTSE

7,392.06 (+0.36 per cent)

+0.67 per cent

+18.42 per cent

German DAX

12,185.64 (+0.38 per cent)

+1.86 per cent

+24.83 per cent

 

Asia (at close)

China CSI 300

3,509.65 (-0.21 per cent)

+2.39 per cent

+9.05 per cent

Japan Nikkei

18,552.61 (-1.04 per cent)

-5.37 per cent

+16.47 per cent

 

Other Data (at 5.00am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

56.60

(+0.66 per cent)

53.71

(+0.58 per cent)

1276.30

(+0.16 per cent)

U$0.7509

 

Aus. Dollar

U$0.7497



Gains for bitcoin on Russia, Japan policies  

Japan and Russia are giving bitcoin a boost and values have increased 8 per cent in the past week.

The cryptocurrency has been made a legal currency in Japan and CNBC reports that Russia is now also considering how to regulate it. The moves to legitimize the digital currency could tempt more investors into the market and see values stabilize.

"The Japan virtual currency act has likely had a major impact, as there has been a lot of buzz in Japanese media over the ruling over the last few months," Aurélien Menant, founder and CEO of Gatecoin, told CNBC.