Morning Briefing: Oil, Yellen weighing

Morning Briefing: Oil, Yellen weighing

Morning Briefing: Oil, Yellen weighing Oil, Yellen weighing
Further decline in oil prices and Fed chair Janet Yellen’s comments are weighing on world markets Thursday.

There was thin trade in Asia with China and Taiwan still closed for holidays and joined today by Japan. Hong Kong and Korea re-opened and closed lower with Australia’s main index the only major to end higher.

European markets are lower as weak demand for oil hits energy stocks, earnings from banks disappointed and Janet Yellen’s comments dampened expectations of US growth.
Wall Street and Toronto are expected to open lower ahead of further comments from the Fed chair due at 10am ET.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 15,914.74 (-0.62 per cent) -2.95 per cent -10.90 per cent
TSX Composite 12,185.72 (-0.79 per cent) -1.08 per cent -19.57 per cent
 
Europe (at 5.30am ET)
UK FTSE 5,545.33 (-2.24 per cent) -5.56 per cent -18.67 per cent
German DAX 8,797.84 (-2.43 per cent) -10.46 per cent -18.18 per cent
 
Asia (at close)
China CSI 300 2,963.79 (-0.70 per cent) -11.83 per cent -10.52 per cent
Japan Nikkei 15,713.39 (-2.31 per cent) -11.21 per cent -10.99 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
30.53
(-1.01 per cent)
26.79
(-2.40 per cent)
1224.10
(+2.47 per cent)
U$0.7162
 
Aus. Dollar
U$0.7045
 
Gold is gaining but mining mostly weak
Gold producers are seeing gains that other commodity industries can only dream of currently. The metal hit a ten-month high of $1,214.64 overnight and has gained in nine of the past ten days. The increase is usually expected when equities are volatile although can come under pressure from a stronger US dollar.

Meanwhile mining giant Rio Tinto has reported a 51 per cent slump in full-year underlying earnings to $4.54 billion, highlighting the extent of weaker commodity prices and demand. The firm had a full-year loss of $866 million compared to 2014’s profit of $6.5 billion. Dividends were held at 25 cents per share but are expected to be lower in the quarters ahead.