Equities fall as oil continues lower... City curbs hiring on Brexit uncertainty...
Equities fall as oil continues lower
Further decline in oil prices overnight has seen world equities fall so far Wednesday. Regional data, earnings and the Fed are all in focus too.
American Petroleum Institute figures reported by Reuters show a larger-than-expected rise in US oil stockpiles last week, overshadowing sentiment resulting from potential output cap talks by OPEC members.
Meanwhile, a report by RBC Capital Markets says that the oil market is over-bearish: “Even as we march closer to the point where the daily global supply overhang turns to a deficit, a deluge of bearish headlines has kept the market on its heels,” it warns.
Asian markets closed mixed with Hong Kong and South Korea higher but most other major indexes sliding. There was some positive news, with figures from Japan showing a rise in machinery orders in June, but it is China’s data that will be keenly observed this week.
European markets are subdued with oil prices and this week’s meeting of the Fed being considered by investors. Post-Brexit uncertainty continues with Norway suggesting it would block any deal which would allow the UK access to the European single-market as it would not be in their interests.
Wall Street and Toronto are expected to open higher.
City curbs hiring on Brexit uncertainty
Financial institutions in the City of London are holding back from hiring amid uncertainty about the post-Brexit landscape. Recruitment firm Morgan McKinley says that new jobs on the market dropped 27 per cent in July compared to a year earlier. Until things become clearer as to how and when the UK will leave the EU, many firms are keeping the option of an exit from London in favour of EU-based locations.
Further decline in oil prices overnight has seen world equities fall so far Wednesday. Regional data, earnings and the Fed are all in focus too.
American Petroleum Institute figures reported by Reuters show a larger-than-expected rise in US oil stockpiles last week, overshadowing sentiment resulting from potential output cap talks by OPEC members.
Meanwhile, a report by RBC Capital Markets says that the oil market is over-bearish: “Even as we march closer to the point where the daily global supply overhang turns to a deficit, a deluge of bearish headlines has kept the market on its heels,” it warns.
Asian markets closed mixed with Hong Kong and South Korea higher but most other major indexes sliding. There was some positive news, with figures from Japan showing a rise in machinery orders in June, but it is China’s data that will be keenly observed this week.
European markets are subdued with oil prices and this week’s meeting of the Fed being considered by investors. Post-Brexit uncertainty continues with Norway suggesting it would block any deal which would allow the UK access to the European single-market as it would not be in their interests.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 18,533.05 (+0.02 per cent) | +2.13 per cent | +5.21 per cent |
| TSX Composite | 14,801.23 (+0.31 per cent) | +3.80 per cent | +2.31 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 6,841.85 (-0.14 per cent) | +3.81 per cent | +1.57 per cent |
| German DAX | 10,678.95 (-0.13 per cent) | +10.90 per cent | -7.98 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,243.34 (-0.42 per cent) | +1.60 per cent | -20.59 per cent |
| Japan Nikkei | 16,735.12 (-0.18 per cent) | +10.78 per cent | -19.58 per cent |
| Other Data (at 4.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 44.41 (-1.27 per cent) |
42.17 (-1.40 per cent) |
1357.60 (+0.81 per cent) |
U$0.7659 |
| Aus. Dollar |
|||
| U$0.7718 | |||
City curbs hiring on Brexit uncertainty
Financial institutions in the City of London are holding back from hiring amid uncertainty about the post-Brexit landscape. Recruitment firm Morgan McKinley says that new jobs on the market dropped 27 per cent in July compared to a year earlier. Until things become clearer as to how and when the UK will leave the EU, many firms are keeping the option of an exit from London in favour of EU-based locations.
