Morning Briefing: Uncertainty dominates markets but China data improves

Morning Briefing: Uncertainty dominates markets but China data improves

Morning Briefing: Uncertainty dominates markets but China data improves Uncertainty dominates markets but China data improves
Uncertainty dominates the markets Tuesday with European indexes focused on Brexit while Australia weighs the political uncertainty of its inconclusive election.

In Asia, markets closed mostly lower with no lead from Wall Street, closed Monday for Independence Day. The Australian central bank announced a hold on interest rates and no change from monetary policy and Japan’s equities were down more than 0.50 per cent.

China’s stocks gained though as the Caixin services PMI showed improvement in June, in fact the fastest pace of growth in almost a year.

European bourses are lower as UK business sentiment dips, as shown by PMI figures and a recent survey; and Italian banks weigh heavily over concern about their debt levels.

Oil prices have continued to decline, having reversed their rally in the previous session, on concern over the global economy.

Wall Street and Toronto are expected to open lower.
 
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North America (previous session)
US Dow Jones 17,949.37 (+0.11 per cent) +0.80 per cent +1.24 per cent
TSX Composite 14,258.87 (+1.38 per cent) +0.23 per cent -2.88 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,479.92 (-0.65 per cent) +4.35 per cent -1.61 per cent
German DAX 9,586.61 (-1.26 per cent) -5.11 per cent -13.31 per cent
 
Asia (at close)
China CSI 300 3,207.38 (+0.08 per cent) +0.57 per cent -17.46 per cent
Japan Nikkei 15,669.33 (-0.67 per cent) -5.85 per cent -23.71 per cent
 
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
48.96
(-2.28 per cent)
47.62
(-2.80 per cent)
1347.30
(+0.62 per cent)
U$0.7772
 
Aus. Dollar
U$0.7523
 
Brexit could be a boost for North American tech sector
A venture capitalist in the UK believes that Brexit could prompt young start-ups to relocate in North America for “relative stability”. New York based ff Venture Capital’s founding partner John Frankel told CNBC that the tech sector gains opportunity during an economic slowdown by “freeing up talent to explore ideas.” This could mean tech entrepreneurs leaving the UK to set up in Silicon Valley or Canada’s burgeoning tech environment.