Morning Briefing: Greenback bounceback; commodities, equities hit

Morning Briefing: Greenback bounceback; commodities, equities hit

Morning Briefing: Greenback bounceback; commodities, equities hit Greenback bounceback; commodities, equities hit
The US dollar is on the rise again, hitting commodities and equities. Oil prices are down 1.5 per cent on the stronger greenback but the dip has been softened by higher refinery demand. Baker Hughes rig count data is released at 1pm ET Friday.

Asian markets closed mostly lower with Australian resources producers under pressure from the rising US dollar. Japan’s government bond yields fell, although a lower yen helped exporters; the Nikkei closed lower. China and Taiwan are closed for a public holiday.

European indexes are lower too as investors seek safer havens with government bonds hitting record highs. The Eurozone is anxious ahead of the UK’s Brexit vote which is less than 2 weeks away.

Elsewhere, Russia’s central bank has cut its interest rate to 10.5 per cent from 11 per cent.

Wall Street and Toronto are expected to open lower.
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 17,985.19 (-0.11 per cent) +0.32 per cent -0.08 per cent
TSX Composite 14,240.02 (-0.51 per cent) +3.37 per cent -4.36 per cent
 
Europe (at 5.30am ET)
UK FTSE (previous) 6,130.12 (-1.63 per cent) -0.43 per cent -10.25 per cent
German DAX 9,877.30 (-2.10 per cent) -1.67 per cent -12.32 per cent
 
Asia (at close)
China CSI 300 3,163.99 (-0.41 per cent) +3.21 per cent -40.50 per cent
Japan Nikkei 16,601.36 (-0.40 per cent) +0.22 per cent -17.19 per cent
 
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
51.27
(-1.31 per cent)
49.80
(-1.50 per cent)
1271.40
(-0.10 per cent)
U$0.7849
 
Aus. Dollar
U$0.7411
 
Another lending crisis is brewing
Online lenders could face issues according to a Reuters report. It says that investors and lending company executives have flagged concerns that some online lenders’ automated systems have failed to detect multiple loans to borrowers.

The ‘soft’ credit checks made by automated systems mean that borrowers can often ‘stack’ loans without scrutiny of their financial circumstances, in order to use one loan to repay a previous one.