Morning Briefing: Nikkei up 4 per cent on election win, oil lower

Morning Briefing: Nikkei up 4 per cent on election win, oil lower

Morning Briefing: Nikkei up 4 per cent on election win, oil lower Nikkei up 4 per cent on election win, oil lower
There’s a positive start to the new week with elections and jobs in focus. A win from Japanese prime minister Shinzo Abe’s ruling coalition has secured Japan’s upper house and increases the prospect of a new round of stimulus for the economy. The Nikkei closed up almost 4 per cent.

Australia’s prime minister Malcolm Turnbull also announced an election win following a very close vote and counting that has taken a week. The ASX responded with gains for sectors including financials and the index closed more than 2 per cent higher.

Elsewhere in Asia, markets were also boosted to a strong finish by the two regional election results and by Friday’s US jobs data which, although a sign of economic strength, is not considered to be enough for the Fed to raise interest rates, especially in the wake of Brexit.

European indexes are also generally higher, with the positive wave from Asia together with the US jobs data. The aircraft manufacturing sector was lifted by the UK-based Farnborough International Air Show, which is a major selling platform for manufacturers.

Wall Street and Toronto are expected to open higher.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,146.74 (+1.40 per cent) +1.58 per cent +2.18 per cent
TSX Composite 14,259.84 (+0.89 per cent) +1.58 per cent -1.05 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,626.49 (+0.54 per cent) +8.35 per cent -0.70 per cent
German DAX 9,746.84 (+1.22 per cent) -0.89 per cent -13.86 per cent
 
Asia (at close)
China CSI 300 3,203.33 (+0.35 per cent) +1.24 per cent -21.99 per cent
Japan Nikkei 15,708.82 (+3.98 per cent) -5.38 per cent -20.58 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
46.05
(-1.52 per cent)
44.67
(-1.63 per cent)
1360.10
(+0.13 per cent)
U$0.7642
 
Aus. Dollar
U$0.7548
 
Oil prices lower, Canadian oil struggles
Oil prices are down again Monday and Reuters reports that US drillers are adapting to lower prices while demand from Asia is a concern. Canadian producers are heavily discounting at around $15 below US crude as the rising output is struggling to find space in pipelines.
 
Carney weighs UK rate cut
The Canadian governor of Britain’s central bank is considering an interest rate cut as early as this week. Mark Carney will testify in front of the UK parliament Tuesday and announce the Bank of England’s interest rate decision Thursday. A Bloomberg poll of investors has a 79 per cent chance of a cut.