Morning Briefing: Oil prices advance despite profit-taking

Morning Briefing: Oil prices advance despite profit-taking

Morning Briefing: Oil prices advance despite profit-taking Still rising: oil prices advance despite profit-taking
Oil prices eased slightly in early trading Tuesday as investors cashed-in on the recent rally. However, the dip was short-lived and prices are on the rise again with continued optimism over fresh producer talks.

Equities are generally weak this morning with Asian markets closing lower, especially in Tokyo where a stronger yen has prompted a sell-off. Analysts warn that there is low sentiment in Japan’s monetary policy which could lead to further volatility for the Nikkei in coming weeks.

European markets are also trending lower with mining stocks among the weakest following regional earnings. The pound slipped to a 3-year low early Tuesday but rallied following the release of UK CPI data which showed a 0.6 per cent rate in July, up from 0.5 per cent in June.

Wall Street, which closed at new record highs in the previous session, is expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,636.05 (+0.32 per cent) +0.65 per cent +6.63 per cent
TSX Composite 14,777.02 (+0.20 per cent) +2.03 per cent +3.50 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,915.86 (-0.36 per cent) +3.70 per cent +5.57 per cent
German DAX 10,642.10 (-0.90 per cent) +5.71 per cent -3.12 per cent
 
Asia (at close)
China CSI 300 3,378.25 (-0.45 per cent) +3.11 per cent -17.07 per cent
Japan Nikkei 16,596.51 (-1.62 per cent) +0.60 per cent -19.12 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
48.49
(+0.29 per cent)
45.98
(+0.52 per cent)
1355.80
(+0.62 per cent)
U$0.7765
 
Aus. Dollar
U$0.7715

 
Citi dismisses copper glut as largest miner posts record loss
Calls for a glut of cheap copper have been rejected by analysts at Citigroup. The metal has performed badly this year but the level of demand will exceed supply by 2020, Citi says, with growth in demand of 1.6 million metric tons while supply grows by 1 million tons.

The report challenges the view of Goldman Sachs and Barclays which both forecast over-supply.
If Citi is correct, it will come as some relief to the world’s largest mining firm. BHP Billiton has posted its worst annual loss ever, $6.4 billion, due to a number of factors including lower commodity prices.

CEO Andrew Mackenzie said he was optimistic about the long-term, especially for oil and copper prices. The firm is listed in London and Sydney with a secondary listing in Johannesburg.