Morning Briefing: Equities, oil rally ends on OPEC deal doubts

Morning Briefing: Equities, oil rally ends on OPEC deal doubts

Morning Briefing: Equities, oil rally ends on OPEC deal doubts Equities, oil rally ends on OPEC deal doubts
Global equities were largely higher at the close of Monday’s session with oil prices gaining 6 per cent on increased hopes of an oil production cap.

Comments made by the secretary general of OPEC suggested there could be further action if an output freeze was successful but noted that the group is not able to achieve stability on its own.
However there are doubts over how universal any agreement would be and if it would make any real impact on the supply glut anyway, given slowing demand.

Saudi Arabian oil minister Ali al-Naimi is in the US and will be speaking in Houston Tuesday morning.

Asian markets closed Tuesday’s session with losses for energy firms. Japanese exporters also suffered as the yen strengthened against the US dollar.

European indexes are lower too with sentiment dented by the weaker oil prices, the Asian handover, and a survey of German business sentiment falling to its lowest mark since December 2013.

Wall Street and Toronto are expected to open flat although pharmaceutical firm Valeant are likely to be a drag following the company’s announcement overnight that it will have to restate accounts for 2014 and 2015 due to revenue being recorded in 2014 which should have been in last year’s results.
 
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North America (previous session)
US Dow Jones 16,620.66 (+1.40 per cent) +3.28 per cent -8.26 per cent
TSX Composite 12,845.63 (+0.25 per cent) +3.68 per cent -15.49 per cent
 
Europe (at 5.30am ET)
UK FTSE 6,008.11 (-0.49 per cent) +1.83 per cent -13.08 per cent
German DAX 9,500.05 (-0.77 per cent) -2.71 per cent -14.65 per cent
 
Asia (at close)
China CSI 300 3,089.36 (-0.95 per cent) -0.77 per cent -12.29 per cent
Japan Nikkei 16,052.05 (-0.37 per cent) -5.35 per cent -13.08 per cent
 
Other Data (at 6.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
34.63
(-0.17 per cent)
33.18
(-0.63 per cent)
1217.90
(­+0.64 per cent)
U$0.7284
 
Aus. Dollar
U$0.7247
 
CSA reports fines doubled in 2015
Wrongdoing in the Canadian securities markets in 2015 were punished with fines of C$250 million, the CSA has announced. The figure was more than double that of 2014 and are seen as a sign of provincial regulators showing their teeth to deter others from breaching rules.
 
US to call on G20 to spend more
G20 leaders will meet in Shanghai this week and the United States will be calling on members to increase fiscal spending in order to boost global growth. The US Treasury is hoping that other nations will agree that the policy will help reduce volatility in the markets and boost confidence.