Morning Briefing: Oil rout in focus, markets lower

Morning Briefing: Oil rout in focus, markets lower

Morning Briefing: Oil rout in focus, markets lower Oil rout in focus, markets lower
Oil is continuing its current turbulent run with benchmark Crude falling below $40 and US crude also down more than 1 per cent. It’s an added concern for the markets, which are already cautious ahead of the Fed meeting next week. Prices were further impacted by a report from the International Energy Agency which predicts that the supply glut will not improve in 2016 with prices set to remain low.

Asian markets have closed mostly lower with private bank analyst Mark Matthews of Julius Baer telling CNBC: "Most investors are 'laying low' ahead of the all-important FOMC meeting.” China’s yuan hit a new 4.5-year low. Tokyo’s Nikkei bucked the trend to close higher as prime minister Shinzo Abe on a state visit to India which has just agreed a Japanese proposal to build India’s first bullet train.

European indexes are lower so far, while Toronto and Wall Street are expected to open lower following a stronger finish Thursday. Investors will be watching US retail and consumer sentiment data.
 
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North America (previous session)
US Dow Jones 17,574.75 (+0.47 per cent) -1.03 per cent +0.24  per cent
TSX Composite 13,016.59 (+0.61 per cent) -2.44 per cent -6.39 per cent
 
Europe (at 6.00am ET)
UK FTSE 6,039.66 (-0.79 per cent) -4.09 per cent -6.53 per cent
German DAX 10,447.52 (-1.43 per cent) -4.22 per cent +5.93 per cent
 
Asia (at close)
China CSI 300 3,608.06 (-0.41 per cent) -5.88 per cent +13.35 per cent
Japan Nikkei 19,230.48 (+0.97 per cent) -2.34 per cent +11.43 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
39.07
(-1.66 per cent)
36.26
(-1.36 per cent)
1063.50
(-0.79 per cent)
U$0.7315
 
Aus. Dollar
U$0.7220
 
UN reports gloomy outlook for world economy
The global economy will only mildly improve in 2016 and 2017 according to the United Nations. Its World Economic Situation and Prospects report suggests 2.4 per cent growth in 2015, down from 2.8 per cent that it forecast 6 months ago; for 2016 it forecasts 2.9 per cent, down from 3.1 per cent. The report highlights that oil prices have dropped 59.8 per cent since July 2014; commodities have fallen 20.6 per cent; global inflation is at the lowest level since 2009. The downturn in China is seen as the largest single risk to global growth.