Morning Briefing: Oil declines, contraction for Chinese factories

Morning Briefing: Oil declines, contraction for Chinese factories

Morning Briefing: Oil declines, contraction for Chinese factories Oil declines, contraction for Chinese factories
Oil prices are declining so far Monday as a range of influences take hold. US oil exports resumed last week, Iran is adding to the supply glut and Goldman Sachs is again calling for the sub-$40 barrel to remain for some time. Hopes of talks between OPEC and non-OPEC producers are losing traction and demand is not showing much prospect of significant gains.

Chinese data released early Monday showed further contraction for its factories with an official PMI of 49.4 for January, the sixth consecutive month of decline and missing expectations.

Asian markets have closed mixed as some focused on lower oil prices and China while others, including Sydney and Tokyo, continued on a wave of sentiment created when the Bank of Japan announced negative interest rates last week.

European markets are generally lower on oil and China along with news that Nigeria is asking for funds from the World Bank to plug a gap in oil revenues. Europe’s banking sector has seen some losses with HSBC freezing pay and hiring and Barclays and Credit Suisse settling a dark pool trading investigation.

Toronto and Wall Street are expected to open higher.
 
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North America (previous session)
US Dow Jones 16,466.30 (+2.47 per cent) -5.50 per cent -4.07 per cent
TSX Composite 12,822.13 (+1.83 per cent) -1.44 per cent -12.62 per cent
 
Europe (at 5.30am ET)
UK FTSE 6,056.39 (-0.45 per cent) -2.98 per cent -10.27 per cent
German DAX 9,728.96 (-0.71 per cent) -9.44 per cent -9.03 per cent
 
Asia (at close)
China CSI 300 2,901.05 (-1.53 per cent) -22.24 per cent -15.53 per cent
Japan Nikkei 17,865.23 (+1.98 per cent) -6.14 per cent +1.08 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
35.81
(-0.50 per cent)
33.14
(-1.43 per cent)
1123.00
(+0.59 per cent)
U$0.7123
 
Aus. Dollar
U$0.7066
 
Banks settle with SEC, NY for record deals
Federal charges made against Barclays and Credit Suisse have been settled for record amounts. Reuters reports that the two banking giants will pay a combined $150 million to the US Securities Commission and the New York state attorney general. The fines follow an investigation by the two regulators into claims that the banks misled investors over dark pool trading venues.
 
Arrests over allegations of world’s largest Ponzi scheme
Chinese authorities have arrested 21 executives from Euzbao over claims that the firm’s shareholders have lost 50 billion yuan (U$7.6 billion) in what has been called a “complete Ponzi scheme.” The number of investors alleged to have lost out in the peer-to-peer scheme is around 900,000 which would be the largest number ever involved in a Ponzi scheme anywhere in the world.