Morning Briefing: Equities higher but oil down as stockpile rises

Morning Briefing: Equities higher but oil down as stockpile rises

Morning Briefing: Equities higher but oil down as stockpile rises Equities higher but oil down as stockpile rises
Equity markets remain broadly higher Wednesday as investors’ risk appetite brings them back to stocks from safer havens such as gold.

Oil prices have slipped back overnight following strong gains Tuesday with data from the American Petroleum Institute showing a rise in the US crude stockpiles of 2.2 million barrels last week. Analysts had been expecting a decrease of 3 million barrels. Official government figures are due Wednesday.
Oil prices have also been impacted by comments from the International Energy Agency which warns that demand is easing while stocks remain high.

Asian equity markets closed higher with the new optimism of stimulus in Japan helping the Nikkei to the region’s strongest finish. The other Asian indexes also gained around 0.5 per cent.

European markets, while buoyed by Asia and a strong Wall Street showing in the previous session, remain subdued this morning. The UK’s new prime minister takes over later today which could bring forward to process of Brexit. One of her first jobs will be to appoint a minister to lead the negotiations with the EU.

Wall Street and Toronto are expected to open higher. Canadian interest rates are in focus north of the border along with a monetary policy report from BoC governor Stephen Poloz.
 
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North America (previous session)
US Dow Jones 18,347.67 (+0.66 per cent) +3.47 per cent +2.06 per cent
TSX Composite 14,477.67 (+0.81 per cent) +3.46 per cent -0.38 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,670.04 (-0.16 per cent) +10.34 per cent -1.01 per cent
German DAX 9,948.98 (-0.15 per cent) +3.02 per cent -13.37 per cent
 
Asia (at close)
China CSI 300 3,282.87 (+0.30 per cent) +7.06 per cent -22.06 per cent
Japan Nikkei 16,231.43 (+0.84 per cent) +1.32 per cent -19.21 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
47.78
(-1.42 per cent)
46.24
(-1.20 per cent)
1342.00
(+0.50 per cent)
U$0.7653
 
Aus. Dollar
U$0.7595
 
China ramps up steel exports to near-record
Chinese steel exports were at their second highest level on record in June as trade tensions increase.
Bloomberg reports that year-over-year sales were up 23 per cent to 10.94 metric tonnes and first-half year sales were at a record for the period. China has been escalating exports of steel due to overproduction but has faced sharp criticism for flooding the market with cheap steel.