Morning Briefing: Oil still rising but global growth concerns markets

Morning Briefing: Oil still rising but global growth concerns markets

Morning Briefing: Oil still rising but global growth concerns markets Oil still rising but global growth concerns markets
Oil prices are comfortably above $50 Wednesday with Brent nearing $52 and US crude around a dollar below that. Although some analysts are calling for the current rally to remain only for a limited time, it is giving support to equity markets while other concerns increase.

Global growth worries are top of the agenda with Chinese trade data for May showing imports and exports are still trending negative, although they are improving.

Asian markets reacted to China’s news but Sydney was impacted by a warning over Australian banks’ risk from rising house prices by Moodys.

Better news came from Japan where GDP for the first quarter came in at 1.9 per cent, up from the 1.7 per cent initial reading. Tokyo and Seoul were the only major Asian indexes to close higher.

In Europe, the Chinese trade data is weighing on investors’ minds and most of the major markets are lower so far.
Wall Street and Toronto are expected to open slightly up.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 17,938.28 (+0.10 per cent) +1.11 per cent +0.97 per cent
TSX Composite 14,365.61 (+0.63 per cent) +4.85 per cent -2.56 per cent
 
Europe (at 5.30am ET)
UK FTSE (previous) 6,288.15 (+0.06 per cent) +2.65 per cent -7.39 per cent
German DAX 10,231.72 (-0.54 per cent) +3.67 per cent -7.53 per cent
 
Asia (at close)
China CSI 300 3,163.99 (-0.41 per cent) +1.07 per cent -40.90 per cent
Japan Nikkei 16,830.92 (+0.93 per cent) +4.50 per cent -17.73 per cent
 
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
51.96
(+1.01 per cent)
50.79
(+0.85 per cent)
1255.20
(+0.66 per cent)
U$0.7871
 
Aus. Dollar
U$0.7448

 
OECD report suggests global growth may be improving
Despite the concerns of markets Wednesday, a new report from the OECD released this morning suggests that weakness in the US and Chinese economies may be improving.

Its leading indicator for April was up to 98.95 from 98.93 in March. It is the first time the indicator has turned positive since July 2014 but remains below the long-term average of 100.