Morning Briefing: Oil prices dominate markets, Fed weighed

Morning Briefing: Oil prices dominate markets, Fed weighed

Morning Briefing: Oil prices dominate markets, Fed weighed Oil prices dominate markets, Fed weighed
Oil prices are in decline again so far Tuesday and that was enough to un-nerve investors in Asia with markets closing mixed. Chinese industrial profits data for September released today improved on the August figure (down 0.1 per cent year-over-year compared to an 8.8 per cent decline) but failed to impress analysts.

The weak Chinese figures and lower oil prices have also impacted sentiment in Europe with most major indexes falling so far. Data from the UK also disappointed with growth in the third quarter down to 0.5 per cent from 0.7 per cent in Q2 and missing expectations of 0.6 per cent.

Toronto and Wall Street are expected to open lower Tuesday. The Fed begins its October monetary policy meeting with possible clues to the likelihood of a December interest rate rise. Earnings will also be in focus with Ford and T-Mobile reporting before the bell and Apple and Twitter reporting after the markets close.
 
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North America (previous session)
US Dow Jones 17,623.05 (-0.13 per cent) +8.02 per cent +4.87 per cent
TSX Composite 13,790.90 (-1.17 per cent) +3.08 per cent -4.69 per cent
 
Europe (at 6.10am ET)
UK FTSE 6,393.50 (-0.37 per cent) +4.66 per cent +0.47 per cent
German DAX 10,789.00 (-0.11 per cent) +11.36 per cent +21.19 per cent
 
Asia (at close)
China CSI 300 3,592.88 (+0.10 per cent) +11.17 per cent +51.67 per cent
Japan Nikkei 18,777.04 (+0.90 per cent) +5.01 per cent +22.02 per cent
 
Other Data (at 6.15am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
47.26
(-0.59 per cent)
43.55
(-0.98 per cent)
1165.60
(-0.05 per cent)
U$0.7580
 
Aus. Dollar
U$0.7242
 
Congress, White House agree tentative budget deal
The US Congress and White House seem to have agreed to a tentative deal on the country’s budget which would see debt levels rising over the next two years and avoid annual talks of a government shutdown. The Republicans will meet to discuss the proposals Tuesday and a full vote could take place in Congress as early as Wednesday.
 
Oil glut not expected to ease
The supply glut in oil is not expected to get any better when the US inventory data is revealed at 10.30 ET Tuesday. Despite the US cutting output to 9.1 million barrels per day from 9.6 million and some better indicators of demand, prices are still volatile. OPEC is due to meet in December but there is little expectation of any reduction in output.
 
Business confidence rises in India
India’s emerging economy is seeing increased sentiment. A new survey of the country’s businesses in September shows a jump in optimism following the central bank’s interest rate cut last month. CNBC says that although manufacturers and builders were more optimistic, service industry bosses are less confident.