Morning Briefing: Global sell-off as Fed fears grow

Morning Briefing: Global sell-off as Fed fears grow

Morning Briefing: Global sell-off as Fed fears grow Global sell-off as Fed fears grow
Concern over an interest rate rise by the Fed next month is keeping global markets subdued currently and added fears of a global slowdown, prompted by yesterday’s OECD report has sparked a sell-off in many markets so far Tuesday.

Asian markets were broadly lower especially following official CPI data which showed that China’s inflation was softer in October, dipping to 1.3 per cent from a year earlier following a 1.6 per cent rise in September and below the 1.5 per cent analysts were expecting. A current account surplus for the 15th month and some positive earnings helped Tokyo’s Nikkei outperform the rest of the region to close higher.

European markets are also lower amid a sell-off following the lead from Asia and North American markets.
Toronto and Wall Street are expected to open lower.
 
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North America (previous session)
US Dow Jones 17,730.48 (-1.00 per cent) +3.78 per cent +0.66 per cent
TSX Composite 13,482.62 (-0.52 per cent) -3.45 per cent -5.34 per cent
 
Europe (at 6.10am ET)
UK FTSE 6,257.90 (-0.59 per cent) -2.47 per cent -3.16 per cent
German DAX 10,735.91 (-0.74 per cent) +6.33 per cent +14.80 per cent
 
Asia (at close)
China CSI 300 3,833.24 (-0.19 per cent) +14.76 per cent +49.40 per cent
Japan Nikkei 19,671.26 (+0.15 per cent) +6.68 per cent +17.23 per cent
 
Other Data (at 6.15am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
47.14
(-0.11 per cent)
43.97
(+0.23 per cent)
1092.50
(+0.40 per cent)
U$0.7538
 
Aus. Dollar
U$0.7062
 
IEA forecasts $50 oil could last through 2020
The International Energy Agency reported Tuesday that the refusal of OPEC countries to cut oil output could mean lower oil prices through to the end of the decade. The IEA concludes that if OPEC is prepared to continue to lose revenue in favour of higher market share then prices could remain around $50 a barrel until 2020 but a balancing of the market could see a price of around $80. OPEC members are due to meet on Dec. 4 but indications are that there will be no real change in policy.
 
Policymakers have limited ability to deal with shocks says Moody’s
Moody’s says that low interest rates and stimulus measures already undertaken will limit the range of policymakers in the event of negative shocks. The ratings agency warned Tuesday that growth that was expected in China and other emerging markets has not materialised and that nations do not have significant buffers to weather any storms.