Morning Briefing: Markets higher as oil gains again

Morning Briefing: Markets higher as oil gains again

Morning Briefing: Markets higher as oil gains again Markets higher as oil gains again
Global equity markets have started the week in a positive mood as oil prices rise amid a lower US rig count. Figures from Baker Hughes show that rigs are at their lowest count since December 2009, giving short-term support to the volatile oil market.

Markets in Sydney, Tokyo and Shanghai led the gains in Asia with most indexes ending the session higher. Analysts question whether there is sustainability in the sentiment though.

In Europe, there are also gains, with miners helping major indexes gain; Frankfurt is up almost 2 per cent. London gained, although investors are watching the pound which has suffered its largest one-day drop in 11 months as uncertainty increases over the UK’s future in the EU. Prominent Conservative and London Mayor Boris Johnson gave his backing to the “leave” campaign over the weekend along with 6 government ministers.

Wall Street and Toronto are expected to track the positive lead worldwide and open higher Monday.
 
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North America (previous session)
US Dow Jones 16,391.99 (-0.13 per cent) +1.85 per cent -9.64 per cent
TSX Composite 12,813.40 (-0.91 per cent) +3.42 per cent -15.55 per cent
 
Europe (at 5.30am ET)
UK FTSE 6,025.92 (+1.27 per cent) +2.13 per cent -12.86 per cent
German DAX 9,572.24 (+1.96 per cent) -1.97 per cent -13.38 per cent
 
Asia (at close)
China CSI 300 3,118.87 (+2.20 per cent) -0.17 per cent -11.45 per cent
Japan Nikkei 16,111.05 (+0.90 per cent) -5.00 per cent -12.12 per cent
 
Other Data (at 6.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
34.04
(+3.12 per cent)
30.63
(+3.34 per cent)
1204.60
(-2.13 per cent)
U$0.7263
 
Aus. Dollar
U$0.7192

Morneau to give economic update
The federal finance minister will report on the state of Canada’s economy Monday, an unusual step with the budget not far away. Bill Morneau will explain how much the economy has changed since the government set out its fiscal plans in November; oil prices have fallen further, global growth has slowed, the US dollar has strengthened and equities have dropped in the three months since. With economists including the OECD downgrading Canada’s growth outlook for 2016, the minister is likely to focus on spending plans, especially in infrastructure.
 
Is this the commodity to invest in right now?
While commodity-watchers focus on oil, gold and other metals there could be one natural resource that has escaped investors’ radars but its price is now soaring. Avacados are native to Latin America but are hugely popular with health-conscious Australians but the country’s growers have sold much of their crop, already diminished by heavy rain. It means that Aussies, who consume more avocados per capita than any other nation, are seeing prices rise sharply. US prices are around U$1 but down under they are paying $5 per fruit!