Morning Briefing: Oil slips on supply, sell-off

Morning Briefing: Oil slips on supply, sell-off

Morning Briefing: Oil slips on supply, sell-off Oil slips on supply, sell-off
Following its sharp rally Friday oil has slipped back around 3 per cent so far Monday as concern over the global supply glut, exacerbated by new Iranian stocks, weighs again. The high hopes of increased demand as weather in the northern hemisphere turned colder has also given way to profit taking.

Asian equity markets closed higher with Sydney leading the resurgence with a near-2 per cent gain. Mining stocks have risen with the price of copper in particular.
European indexes were more subdued in early trading with the major markets broadly flat following the boost in sentiment of last week following dovish tones from the ECB. Frankfurt’s DAX is higher despite a report showing weakened German business sentiment.
Wall Street and Toronto are expected to open higher.
 
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North America (previous session)
US Dow Jones 16,093.51 (+1.33 per cent) -8.31 per cent -8.94 per cent
TSX Composite 12,389.58 (+2.94 per cent) -6.91 per cent -16.17 per cent
 
Europe (at 5.30am ET)
UK FTSE 5,881.35 (-0.32 per cent) -5.97 per cent -13.93 per cent
German DAX 9,765.41 (+0.01 per cent) -8.97 per cent -8.30 per cent
 
Asia (at close)
China CSI 300 3,128.89 (+0.50 per cent) -18.48 per cent -12.40 per cent
Japan Nikkei 17,110.91 (+0.90 per cent) -8.83 per cent -2.29 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
31.35
(-2.80 per cent)
31.29
(-2.80 per cent)
1105.10
(+0.80 per cent)
U$0.7047
 
Aus. Dollar
U$0.6988

Metals could get support from China says Goldman Sachs
A report from Goldman Sachs says that a slight uptick in China’s manufacturing and industrials could give a lift to metals. Highlighting some stability in the country’s ‘old economy’ the report says that short-term support for metals is expected although the longer term outlook is bearish. Prices were down 42 per cent for nickel, 24 per cent for copper and 11 per  cent for aluminium in 2015.
 
 
Weekend storms caused less economic impact than expected
The snow storms which hit the US east coast over the weekend will have resulted in economic losses lower than previously expected. The snowfall, heavy as it was, did not result in major power outages and would also have limited impact on business due to it falling on the weekend. Experts predict an economic impact of around $850 million to retailers, analysts Planalytics told Fox.