Morning Briefing: Markets weigh Fed rise

Morning Briefing: Markets weigh Fed rise

Morning Briefing: Markets weigh Fed rise Markets weigh Fed rise
Trade was thin in Asia Monday as many of the major markets are closed for the Lunar New Year holidays but Tokyo was the star performer, closing up more than 1 per cent following recent losses.

Meanwhile China’s foreign currency reserves are at the lowest level since 2012 according to new figures. The reserves dropped almost $100 billion to $3.23 trillion as the central bank ditched dollars to prop up the yuan in January.

Markets are starting to reconsider the prospect of a US interest rate rise, which had been almost dismissed for this year by analysts; recent data, particularly jobs, has raised expectations that the Fed may decide to raise rates again. Janet Yellen will testify to the House Financial Services Committee Wednesday.

Europe’s major markets are slightly higher so far after opening lower as US jobs data was digested. There are calls by two central banks in the Eurozone bloc to have greater regulatory cohesion between its states. A German newspaper reports that central bankers in Germany and France believe that a central finance ministry connected to an independent fiscal council could be the way forward. They expressed concern that the ECB’s monetary policy will not create sustainable growth.

Wall Street and Toronto are expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 16,204.97 (-1.29 per cent) -0.87 per cent -9.08 per cent
TSX Composite 12,763.99 (-0.08 per cent) +2.56 per cent -15.38 per cent
 
Europe (at 4.30am ET)
UK FTSE 5,854.47 (+0.11 per cent) -0.98 per cent -14.58 per cent
German DAX 9,295.80 (+0.10 per cent) -5.62 per cent -14.30 per cent
 
Asia (at close)
China CSI 300 2,963.79 (-0.70 per cent) -11.83 per cent -10.52 per cent
Japan Nikkei 17,004.30 (+1.10 per cent) -3.92 per cent -3.65 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
34.43
(+1.09 per cent)
31.18
(+0.94 per cent)
1168.70
(+0.95 per cent)
U$0.7216
 
Aus. Dollar
U$0.7112
 
Oil rises on stabilization talks
Saudi Arabia and Venezuela have held talks to discuss how to stabilize the oil market Sunday. It follows recent comments from a Russian official suggesting that talks between non-OPEC and OPEC producers could happen. Although there is no deal on the table and the talks may come to nothing the markets have reacted with oil futures rising more than 1 per cent overnight.
 
This will cost economies $445 billion
Cybercrimes will be in focus at the RSA Conference later this month amid reports that the growing threats will cost global economies $445 billion in 2016. The World Economic Forum’s Global Risks Report warns that attacks are on the rise and much of the activity is state-sponsored with intellectual property frequently targeted.