Morning Briefing: Equities mixed as oil rebounds, dollar gains

Morning Briefing: Equities mixed as oil rebounds, dollar gains

Morning Briefing: Equities mixed as oil rebounds, dollar gains Equities mixed as oil rebounds, dollar gains
As expected, volatility rules following the US election result with markets eyeing every scrap of Trump policy detail as it begins to emerge.

Details of how the new administration may affect US and global economies are still patchy and investors are likely to remain cautious until the picture is clearer.

Asian indexes were mixed Tuesday with most ending the session flat or below the line; Hong Kong was the outlier as an inflow of investment in stocks gathered pace.

European markets are more optimistic in early trading with London and Paris leading while Frankfurt was flat. German and UK consumer price index data were lower than expected.

Oil prices have rebounded overnight with gains of more than 2 per cent for US and Brent crude amid renewed sentiment for the forthcoming OPEC members’ meeting, which may yet result in a workable and relevant cap on output. Shale output from the US has also eased.

Wall Street and Toronto are expected to open slightly higher.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,868.69 (+0.11 per cent) +4.03 per cent +9.41 per cent
TSX Composite 14,598.45 (+0.30 per cent) -0.09 per cent +11.65 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,808.74 (+0.82 per cent) -2.92 per cent +11.29 per cent
German DAX 10,694.37 (+0.01 per cent) +1.08 per cent -0.13 per cent
 
Asia (at close)
China CSI 300 3,429.87 (-0.01 per cent) +3.75 per cent -8.45 per cent
Japan Nikkei 17,672.62 (-0.03 per cent) +4.82 per cent -9.84 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
45.35
(+2.09 per cent)
44.44
(+2.59 per cent)
1225.60
(+0.32 per cent)
U$0.7393
 
Aus. Dollar
U$0.7557

 
Bond sell-off eases
The recent sell-off in the bonds market has eased following the US election with traders reacting to a softening of the greenback, reducing long-term yields.

However, experts say that the lack of clarity so far for Trump’s policies are likely to remain volatile.

“Risks are elevated, and we are expecting further increases in volatility as markets attempt to second-guess the policies that might eventually come out from the U.S.,” Michael McCarthy, chief market strategist at CMC Markets in Sydney told Bloomberg.