Morning Briefing: Weak Wednesday as oil, equities decline

Morning Briefing: Weak Wednesday as oil, equities decline

Morning Briefing: Weak Wednesday as oil, equities decline Weak Wednesday as oil, equities decline
Sentiment across world markets has slipped in the last 24 hours as oil prices reverse amid OPEC output deal doubts; and regional earnings and data remain mixed.

Asian indexes closed mostly lower Wednesday as energy stocks lost ground as oil prices dropped 1.5 per cent. Sydney led the losses as energy, banks and miners all fell. The leisure sector was hit as an Australian theme park operator’s shares dropped following the death of 4 people from an apparent ride malfunction.

European indexes are trending lower, tracking weakness in the Asia and North American markets sessions.
Some major names in the region’s banking sector is reporting results and will be closely watched.

Wall Street and Toronto are expected to open lower. US Advance Goods Trade Balance for September is due later together with housing data and oil inventories.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 18,169.27 (-0.30 per cent) -0.50 per cent +2.96 per cent
TSX Composite 14,870.63 (-0.35 per cent) +1.72 per cent +7.83 per cent
 
Europe (at 4.30am ET)
UK FTSE 6,951.37 (-0.94 per cent) +1.96 per cent +8.33 per cent
German DAX 10,677.49 (-0.74 per cent) +2.73 per cent -1.15 per cent
 
Asia (at close)
China CSI 300 3,354.80 (-0.38 per cent) +4.18 per cent -6.53 per cent
Japan Nikkei 17,391.84 (+0.15 per cent) +5.12 per cent -8.21 per cent
 
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
50.06
(-1.44 per cent)
49.20
(-1.52 per cent)
1274.80
(+0.09 per cent)
U$0.7488
 
Aus. Dollar
U$0.7694
 
Oil stocks rise as doubts grow over OPEC deal
Data released late Tuesday by the American Petroleum Institute reveals a further increase in US stockpiles and doubts are growing that the OPEC deal will produce the desired support for the market.

Reuters reports that API figures show a 4.75 million barrels increase last week.

Russia, which was showing support for joining OPEC in a deal to curb output, now appears to weakening. That, added to a reported rift between OPEC members Saudi Arabia and Iran is looking likely to derail the agreement, which has given considerable lift to oil prices in recent weeks.