Morning Briefing: Stocks head lower despite gains for oil

Morning Briefing: Stocks head lower despite gains for oil

Morning Briefing: Stocks head lower despite gains for oil Stocks head lower despite gains for oil
World equities have started Wednesday lower despite some recovery overnight for oil prices. After-hours trade in Wall Street stocks saw a sell-off following the decline of oil and equities in the previous session.

Asian markets followed the weak lead from New York and with Tokyo and Sydney seeing some of the largest losses. All of Asia’s main markets closed lower.

In Europe, oil prices are in focus and although there has been some improvement, Brent and US crude are roughly where they were before the overnight drop. Also being weighed by European investors is the renegotiation of the relationship between the EU and the UK, which is likely to impact other non-Eurozone countries. British PM David Cameron’s proposals would allow those EU states which are not part of the Euro currency to join together to block certain legislation. It brings into question the federalisation of the EU which is an ambition of some member states.

Wall Street and Toronto are expected to follow the global trend and open lower this morning. A jobs report from ADP Employment at 8.15am ET will be eyed for clues to a potential next interest rate rise by the Fed.
 
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North America (previous session)
US Dow Jones 16,153.54 (-1.80 per cent) -7.30 per cent -8.56 per cent
TSX Composite 12,442.26 (-1.83 per cent) -4.36 per cent -17.40 per cent
 
Europe (at 5.30am ET)
UK FTSE 5,873.67 (-0.82 per cent) -5.91 per cent -14.53 per cent
German DAX 9,461.14 (-1.25 per cent) -11.93 per cent -13.13 per cent
 
Asia (at close)
China CSI 300 2,948.64 (-0.43 per cent) -20.97 per cent -14.22 per cent
Japan Nikkei 17,191.25 (-3.15 per cent) -9.68 per cent -0.83 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
33.32
(+1.83 per cent)
30.47
(+1.97 per cent)
1129.50
(+0.20 per cent)
U$0.7138
 
Aus. Dollar
U$0.7056
 
Russia says talks on oil output are still possible
It was Russian hopes of talks with OPEC to stem oil output which led to an increase in prices last week but those hopes seemed to be dashed earlier this week and prices have since receded. However, the Russian foreign minister is still optimistic. Sergei Lavrov said Wednesday that if there is a will of producing nations to meet then it will happen. Although the situation for producers is becoming increasingly urgent, the Russian comments may not result in talks and this morning’s rise in prices may quickly turn negative.