Oil, stocks rebound as delayed winter approaches... Moody’s weighs Canadian downgrade... Oil has hit the bottom says Vedanta chief...
Oil, stocks rebound as delayed winter approaches
Much of the western world has been experiencing above-average temperatures during the last few months but with colder weather moving in demand for oil and gas are expected to rise in the coming weeks.
The price of oil has rebounded sharply over the past 24 hours, 5 per cent up Thursday and a similar rise so far Friday with West Texas Intermediate and Brent now above $30 and rising.
Expectation of increased stimulus for the Eurozone has added to sentiment today and global stocks are trending higher.
Asian indexes closed higher with Tokyo soaring 6 per cent as the cocktail of oil, Europe and a strong lead from Wall Street gave an end-of-the-week boost to confidence.
European markets are up by around 2 per cent led by Paris.
Wall Street and Toronto are expected to open higher.
Moody’s weighs Canadian downgrade
Moody’s is considering a downgrade of 12 Canadian mining firms and their subsidiaries. Its announcement notes weakness in the global resources market. Senior analyst Jamie Koutsoukis noted: "China's outsized influence on the commodities market, coupled with the need for significant recalibration of supply to bring the industry back into balance indicates that this is not a normal cyclical downturn, but a fundamental shift that will place an unprecedented level of stress on mining companies." Canada has not been singled out for the review with Moody’s considering the credit situation for miners across the globe.
Oil has hit the bottom says Vedanta chief
The head of India’s Vedanta Resources says he believes that oil will now remain above $30. Anil Agarwal spoke at the World Economic Forum and told CNBC that the low prices were “hurting everybody” but he now expected a continued rally as it is “definitely” at the bottom. Verdanta is listed in London.
Much of the western world has been experiencing above-average temperatures during the last few months but with colder weather moving in demand for oil and gas are expected to rise in the coming weeks.
The price of oil has rebounded sharply over the past 24 hours, 5 per cent up Thursday and a similar rise so far Friday with West Texas Intermediate and Brent now above $30 and rising.
Expectation of increased stimulus for the Eurozone has added to sentiment today and global stocks are trending higher.
Asian indexes closed higher with Tokyo soaring 6 per cent as the cocktail of oil, Europe and a strong lead from Wall Street gave an end-of-the-week boost to confidence.
European markets are up by around 2 per cent led by Paris.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 15,882.68 (+0.74 per cent) | -8.81 per cent | -10.84 per cent |
| TSX Composite | 12,035.86 (+1.63 per cent) | -8.00 per cent | -18.48 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 5,898.15 (+2.15 per cent) | -3.04 per cent | -13.22 per cent |
| German DAX | 9,757.47 (+1.91 per cent) | -6.97 per cent | -6.50 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,113.46 (+1.04 per cent) | -19.69 per cent | -12.73 per cent |
| Japan Nikkei | 16,958.53 (+5.88 per cent) | -10.21 per cent | -2.14 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 30.83 (+5.40 per cent) |
30.85 (+4.47 per cent) |
1097.70 (-0.04 per cent) |
U$0.7052 |
| Aus. Dollar |
|||
| U$0.7022 | |||
Moody’s weighs Canadian downgrade
Moody’s is considering a downgrade of 12 Canadian mining firms and their subsidiaries. Its announcement notes weakness in the global resources market. Senior analyst Jamie Koutsoukis noted: "China's outsized influence on the commodities market, coupled with the need for significant recalibration of supply to bring the industry back into balance indicates that this is not a normal cyclical downturn, but a fundamental shift that will place an unprecedented level of stress on mining companies." Canada has not been singled out for the review with Moody’s considering the credit situation for miners across the globe.
Oil has hit the bottom says Vedanta chief
The head of India’s Vedanta Resources says he believes that oil will now remain above $30. Anil Agarwal spoke at the World Economic Forum and told CNBC that the low prices were “hurting everybody” but he now expected a continued rally as it is “definitely” at the bottom. Verdanta is listed in London.
