Morning Briefing: Russian evasion; oil drops as Moscow pulls out of talks

Morning Briefing: Russian evasion; oil drops as Moscow pulls out of talks

Morning Briefing: Russian evasion; oil drops as Moscow pulls out of talks Russian evasion; oil drops as Moscow pulls out of talks
Moscow dealt OPEC talks a blow Tuesday by saying it will not be attending Wednesday’s meeting which aims to forge a deal to cut output. Although the move has rattled the market, with oil prices off by 1 per cent this morning, Russia has not ruled out talks with the cartel in the future.

Equity markets are mixed with Asian indexes reacting to the lower oil price. Tokyo’s Nikkei closed lower despite some optimistic data on unemployment and household spending.

Shanghai and Seoul gained, the latter benefitting from President Park Geun-hye saying she would step down, having been implicated in a corruption scandal which could lead to impeachment.

European indexes are mixed too with reduced metals prices hitting miners and the lower oil price impacting the energy sector. Eurozone data including CPI and confidence data are due later.

London’s FTSE is down following comments by ECB president Mario Draghi that Britain will be impacted by Brexit before the Eurozone. There was also an unfortunate incident for the UK government as a minister was photographed carrying a written document that appeared to suggest the government will seek a “have cake and eat it” deal with the EU, which is likely to be fiercely resisted by the bloc.

Wall Street and Toronto are expected to open higher.
 
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North America (previous session)
US Dow Jones 19,097.90 (-0.28 per cent) +5.16 per cent +7.30 per cent
TSX Composite 15,015.36 (-0.40 per cent) +1.56 per cent +12.32 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,769.31 (-0.44 per cent) -3.24 per cent +6.18 per cent
German DAX 10,603.02 (+0.19 per cent) -0.87 per cent - 6.06 per cent
 
Asia (at close)
China CSI 300 3,564.04 (+0.82 per cent) +6.70 per cent +0.20 per cent
Japan Nikkei 18,307.04 (-0.27 per cent) +4.93 per cent -7.93 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
47.76
(-1.00 per cent)
46.52
(-1.19 per cent)
1185.90
(-0.41 per cent)
U$0.7436
 
Aus. Dollar
U$0.7462

Will oil hit $40 if OPEC deal fails?
Oil could slump to $40 later this week if a formal meeting of OPEC members fails to produce a deal. That’s the view of some analysts including Fadel Gheit, managing director of oil & gas research at Oppenheimer & Co. He told CNN that he does not expect a deal Wednesday which could easily see a slump to $40 barrel.