Morning Briefing: Fed in focus, China returns to work

Morning Briefing: Fed in focus, China returns to work

Morning Briefing: Fed in focus, China returns to work Fed in focus, China returns to work
World stocks are lower so far Thursday as the minutes of the Fed’s recent FOMC meeting are awaited (due at 2pm ET). There are also a number of Fed speakers expected during the session.

Asian indexes were mixed with Sydney closing slightly higher while Tokyo declined almost 1 per cent. Star performer was Shanghai which gained almost 3 per cent when it re-opened after week-long public holidays.

European markets are also slightly lower generally with London outperforming. Frankfurt is lower following data which showed that Germany’s exports fell 5.2 per cent in August.

New York and Toronto are expected to open lower ahead of the Fed.
 
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North America (previous session)
US Dow Jones 16,912.29 (+0.73 per cent) +2.54 per cent +0.48 per cent
TSX Composite 13,868.35 (+1.62 per cent) +1.74 per cent -5.44 per cent
 
Europe (at 6.10am ET)
UK FTSE 6,340.83 (+ 0.07 per cent) +3.17 per cent - 2.18 per cent
German DAX 9,953.36 (- 0.17 per cent) -3.10 per cent +10.65 per cent
 
Asia (at close)
China CSI 300 3,296.48 (+2.92 per cent) -1.95 per cent +34.50 per cent
Japan Nikkei 18,141.17 (-0.99 per cent) +4.10 per cent +16.32 per cent
 
Other Data (at 6.10am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
51.51
(+0.35 per cent)
47.96
(+0.31 per cent)
1144.0
(-0.41 per cent)
U$0.7669
 
Aus. Dollar
U$0.7187
 

New China-Europe trade agreement?
Before the ink is even dry on the Trans-Pacific Partnership there is speculation that China and Europe could be planning a deal of their own. The two economies are not part of the TPP and China’s president has hinted at his willingness to do a deal with Europe previously. Economists are now talking about a renewed thirst for a bilateral deal in light of the TPP.
 
Oil could drop below $50 again after stockpile data
Data showing a large rise in US oil stockpiles could send the price of crude lower again Thursday. While Brent is currently trading above $50 and WTI is around $48 that could change as markets digest the latest inventory figures. US stocks rose by 3.1 million barrels to 461 million last week. Reuters says that analysts had expected a 2.2 million rise.