Morning Briefing: Oil rebounds on US draw, Yellen in focus

Morning Briefing: Oil rebounds on US draw, Yellen in focus

Morning Briefing: Oil rebounds on US draw, Yellen in focus Oil rebounds on US draw, Yellen in focus
A larger-than-expected draw from US stockpiles has helped oil return to positive territory Wednesday following a sharp drop in the previous session. However, the position could change later with hopes of an agreement on output caps likely to fail as analysts cite deep-rooted rifts between OPEC members, notably Saudi Arabia and Iran.

Markets are awaiting Fed chair Janet Yellen’s testimony to the House along with data on US consumables orders.

Asian markets closed mixed with Sydney and Hong Kong higher while others declined; Tokyo was off by 1.31 per cent amid a sell-off due to a strengthening yen.

European indexes are trending higher with financials gaining from Deutsche shares gaining following its recent sell-off. This was helped by news that it is selling its UK insurance business, albeit at a loss. ECB president Mario Draghi speaks later.

Wall Street and Toronto are expected to open higher ahead of Yellen and other Fed speakers.
 
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North America (previous session)
US Dow Jones 18,228.30 (+0.74 per cent) -0.91 per cent +11.73 per cent
TSX Composite 14,558.04 (-0.42 per cent) -0.56 per cent +11.95 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,867.82 (+0.88 per cent) +0.44 per cent +15.25 per cent
German DAX 10,321.06 (-0.70 per cent) -2.52 per cent +6.53 per cent
 
Asia (at close)
China CSI 300 3,230.89 (-0.30 per cent) -2.30 per cent +0.37 per cent
Japan Nikkei 16,465.40 (-1.31 per cent) +0.64 per cent -6.69 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
46.31
(+0.74 per cent)
46.29
(+0.70 per cent)
1327.60
(-0.21 per cent)
U$0.7564
 
Aus. Dollar
U$0.7677

 
Canada agrees LNG project
The proposed LNG plant in northern BC has been approved by the federal government paving the way for the construction of an $11.4 billion facility.

The project has been approved subject to a long list of environmental conditions, designed to appease campaigners who say it is contrary to Canada’s climate change commitments.

The government says the exporting of LNG to Asia will help the region to reduce its carbon emissions from coal-fired energy plants.