Morning Briefing: Equities fall as oil continues lower

Morning Briefing: Equities fall as oil continues lower

Morning Briefing: Equities fall as oil continues lower Equities fall as oil continues lower
Falling oil prices have subdued world equity markets Tuesday. Hopes that Russia would persuade OPEC to cut production have been dismissed as “highly unlikely” by Goldman Sachs while Reuters says that analyst Andy Sommer from Swiss firm Axpo Trading is predicting a $30 barrel this month.

Asian markets reacted to the lower oil prices and the weaker lead from Wall Street following poor manufacturing data from China, the US and the Eurozone. Shanghai closed higher but others shook off sentiment from Japan’s interest rate cut to close lower. Sydney ended with losses led by the energy sector; Australia’s central bank announced that it is holding interest rates steady at 2 per cent.

In Europe, oil dragged markets lower as BP announced its worst annual results in 20 years with a $6.5 billion loss. Its shares dropped 7 per cent. Meanwhile markets await the outcome of talks between the EU and UK as the country renegotiates its relationship with Brussels ahead of an ‘in/out’ referendum.

Wall Street and Toronto are expected to open lower.
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North America (previous session)
US Dow Jones 16,449.18 (-0.10 per cent) -5.60 per cent -4.17 per cent
TSX Composite 12,674.37 (-1.15 per cent) -2.58 per cent -14.94 per cent
Europe (at 5.30am ET)
UK FTSE 5,963.54 (-1.59 per cent) -4.47 per cent -12.08 per cent
German DAX 9,629.81 (-1.31 per cent) -10.36 per cent -11.07 per cent
Asia (at close)
China CSI 300 2,961.33 (+2.08 per cent) -20.63 per cent -11.71 per cent
Japan Nikkei 17,750.68 (-0.64 per cent) -6.74 per cent +1.10 per cent
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(-3.83 per cent)
(-3.61 per cent)
(-0.31 per cent)
Aus. Dollar

Tech stocks higher on Wall Street
The Nasdaq is expected to open slightly higher following Monday’s earnings reports from Facebook and Google-parent Alphabet. The latter’s post-close results showed that it is the world’s most valuable company at $559 billion based on after-hours trading of its shares, which jumped 8 per cent on earnings. The valuation surpasses that of Apple, which at its share price late Monday was valued at $534.7 billion. Meanwhile there is talk of a Twitter takeover by private equity firms. There has previously been speculation that it could be a target for Google. Yahoo is also in focus Tuesday as it is reporting results.
Canada is 6th freest economy
The annual Index of Economic Freedom has ranked Hong Kong first for the 22nd consecutive year despite political unrest in the region. The Wall Street Journal and the Heritage Foundation ranks nations according to rule of law, government, regulatory and openness of markets. Canada is rated 6th with a score of 78.0. The US slipped to 75.4. Japan and Sweden were also among the 19 advanced economies to fall. The index’s average hit a new record at 60.7 as developing nations improved.