Morning Briefing: Markets fall, Tokyo reacts to North Korea missile

Morning Briefing: Markets fall, Tokyo reacts to North Korea missile

Morning Briefing: Markets fall, Tokyo reacts to North Korea missile Markets fall, Tokyo reacts to North Korea missile
Declining oil prices and a sell-off on Wall Street in the previous session have spooked investors Wednesday.

Most major markets are down so far as economic and political issues exacerbate weaker sentiment.

Asian markets closed lower, led by a 2 per cent slump for Tokyo’s Nikkei as the market reacted to news reports of a failed missile test by North Korea. There was also some weak economic data as Japanese supermarket sales picked up their pace of decline.

Sydney’s ASX was another notable loser of the session as materials, energy and financials fell. New Zealand’s central bank will announce its latest interest rate decision overnight. 

European markets are trending lower with a drop in the Eurozone’s current account surplus while concern remains surrounding forthcoming elections. 

Wall Street’s sell-off and President Trump’s policies are also in focus in Europe.

Wall Street and Toronto are expected to open lower. US oil and gasoline inventory data is due. The BoC’s deputy governor Lawrence Schembri speaks later.
 

 

Latest

1 month ago

1 year ago

 

North America (previous session)

US Dow Jones

20,668.01 (-1.14 per cent)

-0.52 per cent

+17.55 per cent

TSX Composite

15,313.13 (-0.84 per cent)

-3.27 per cent

+13.49 per cent

 

Europe (at 5.00am ET)

UK FTSE

7,313.04 (-0.89 per cent)

+0.15 per cent

+18.09 per cent

German DAX

11,878.01 (-0.70 per cent)

-1.00 per cent

+18.90 per cent

 

Asia (at close)

China CSI 300

3,450.05 (-0.47 per cent)

-1.14 per cent

+6.95 per cent

Japan Nikkei

19,041.38 (-2.13 per cent)

-1.75 per cent

+11.69 per cent

 

Other Data (at 5.00am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

50.45

(-1.00 per cent)

47.74

(-1.04 per cent)

1247.20

(+0.20 per cent)

U$0.7463

 

Aus. Dollar

U$0.7648



5 to 10 per cent correction for Wall Street ahead?
The editor of the Gartman Letter says that US stocks are in line for a 5 per cent drop and maybe worse later on.

Dennis Gartman told CNBC that markets could fall as they lose confidence in President Trump’s policies. 

"I think there's something to the downside that could be quite serious," Gartman said. "Let us hope it's merely a 5-7 percent correction and nothing more than that."

Meanwhile UBS predicted Tuesday that a correction on Wall Street could be as much as 10 per cent.