Morning Briefing: Markets weak on oil, Japan

Morning Briefing: Markets weak on oil, Japan

Morning Briefing: Markets weak on oil, Japan Markets weak on oil, Japan
Equity markets are trending lower so far Tuesday as oil prices remain weak following a near-4 per cent drop in the previous session.

Japan’s economic stimulus is also in focus as the government approved the multi-billion-dollar package of fiscal measures. Although the news came after the markets closed, it was more of a formality. The yen hit a 3-week high as the deal was confirmed and Japanese bonds declined.

Elsewhere in Asia, Australia’s central bank cut interest rates by 25 basis points to a new low of 1.5 per cent. Markets closed lower with the exception of Shanghai.  Hong Kong closed early due to adverse weather conditions.

European indexes have been impacted by concern over the region’s banks. Stress test results released Friday have shown some weak spots in financial institutions, especially in Italy.

Wall Street and Toronto are expected to open lower.
 
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North America (previous session)
US Dow Jones 18,404.51 (-0.15 per cent) +2.54 per cent +4.04 per cent
TSX Composite 14,582.74 (+0.21 per cent) +3.68 per cent +0.79 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,634.65 (-0.89 per cent) +0.86 per cent -0.92 per cent
German DAX 10,185.05 (-1.41 per cent) +4.18 per cent -9.94 per cent
 
Asia (at close)
China CSI 300 3,189.05 (+0.39 per cent) +1.10 per cent -16.44 per cent
Japan Nikkei 16,391.45 (-1.47 per cent) +4.52 per cent -20.37 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
42.17
(+0.12 per cent)
40.06
(+0.00 per cent)
1366.00
(+0.47 per cent)
U$0.7627
 
Aus. Dollar
U$0.7567

 
Could Brexit break-up the Eurozone
Although the UK has yet to trigger the formal process of leaving the European Union, and the country’s economy is showing signs of slowing; for many it is the impact on the weaker economies of the region that is of most concern.

JP Morgan Chase’s CEO Jamie Dimon believes that Brexit could result in the breakdown of the Eurozone, the trading bloc within the EU which has the Euro as its currency.

"It may take more than five years, but it may very well happen," Dimon said in an interview on CNBC.