Morning Briefing: Oil below $35, North Korea tests H-bomb

Morning Briefing: Oil below $35, North Korea tests H-bomb

Morning Briefing: Oil below $35, North Korea tests H-bomb Oil below $35, North Korea tests H-bomb
World markets have focused on a further drop in oil prices overnight together with geopolitical tension as North Korea announced it has been testing a hydrogen bomb and would not give up its capabilities until the US shows less hostility to the country.

Markets reacted in Asia with a sell-off although China was also sharply in focus as growth concerns continue. Shanghai though managed to finish higher despite the concerns.

In Europe markets are trading lower so far on the North Korea test and concern over the Saudi-Iran dispute, China and oil.

Wall Street and Toronto are expected to open lower Wednesday.
 
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North America (previous session)
US Dow Jones 17,158.66 (+0.06 per cent) -3.86 per cent -1.96 per cent
TSX Composite 12,920.14 (-0.05 per cent) -3.28 per cent -9.31 per cent
 
Europe (at 6.00am ET)
UK FTSE 6,059.25 (-1.27 per cent) -2.87 per cent -4.83 per cent
German DAX 10,183.29 (-1.23 per cent) -5.29 per cent +7.54 per cent
 
Asia (at close)
China CSI 300 3,539.81 (+1.75 per cent) -3.75 per cent -2.78 per cent
Japan Nikkei 18,191.32 (-0.99 per cent) -6.73 per cent +7.75 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
34.87
(-4.26 per cent)
34.85
(-3.11 per cent)
1083.50
(+0.47 per cent)
U$0.7098
 
Aus. Dollar
U$0.7071
 
Saudi Arabia hikes gas prices as oil rout bites
Economic concerns in Saudi Arabia have led to the price of gas rising 50 per cent. CNN reports that its part of a range of perks for the nation’s citizens which are being scrapped or slashed as the lower oil revenues begin to bite. With a large percentage of Saudis working for the government and oil revenues making up 75 per cent of the budget, the country is under pressure from an “economic bomb” with no end in the oil rout in sight.
 
Eurozone set to show best growth for more than 4 years
A report from analysts at Markit predicts that the Eurozone recovery is underway with 2015 showing the best growth in 4.5 years. The data released Wednesday reveals that December’s composite PMI was 54.3 and the quarterly average was the best since 2011. Ireland and Italy had the strongest growth followed by Germany and Spain.