Morning Briefing: World markets begin the week lower, gold gains

Morning Briefing: World markets begin the week lower, gold gains

Morning Briefing: World markets begin the week lower, gold gains

World markets begin the week lower, gold gains

Equities and oil prices are trending lower as the new week gets underway but gold prices have jumped as the greenback weakened following the withdrawal of Donald Trump’s healthcare bill.

Oil prices are slipping despite hopes of an extension of the OPEC output cuts, as the impact is being offset by increased US drilling.

Markets are questioning whether the defeat for President Trump’s headline-grabbing reform of the US healthcare system is indicative of other troubles ahead for the administration, especially tax and regulation reforms which would help business.

Asian markets closed with broad losses, led by Tokyo which reacted to a stronger yen with a 1.4 per cent drop for the Nikkei.

European indexes are trending lower as most sectors weaken including the highly influential banking groups. Also in focus is the forthcoming start of the UK’s exit from the EU which is due to start Wednesday. German business sentiment data shows gains.

Wall Street and Toronto are expected to open lower.

 

Latest

1 month ago

1 year ago

 

North America (previous session)

US Dow Jones

20,596.72 (-0.29 per cent)

-1.16 per cent

+17.59 per cent

TSX Composite

15,442.67 (+0.06 per cent)

-0.13 per cent

+15.61 per cent

 

Europe (at 5.00am ET)

UK FTSE

7,285.52 (-0.70 per cent)

+0.45 per cent

+19.31 per cent

German DAX

11,978.74 (-0.71 per cent)

+1.32 per cent

+21.59 per cent

 

Asia (at close)

China CSI 300

3,478.04 (-0.33 per cent)

+0.92 per cent

+8.76 per cent

Japan Nikkei

18,985.59 (-1.44 per cent)

-0.64 per cent

+11.66 per cent

 

Other Data (at 5.00am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

50.62

(-0.35 per cent)

50.61

(-0.37 per cent)

1257.40

(+0.71 per cent)

U$0.7501

 

Aus. Dollar

U$0.7630

Buy European equities says Morgan Stanley

European equities could prove to be a good buy due to strengthening economic conditions in the region according to Morgan Stanley.

The bank has increased its earnings forecast to as much as 16 per cent for MSCI Europe index companies while London’s FTSE 100 is expected to see an earnings per share gain of 24 per cent within a year.

Reuters reports that the financials sector is looking in good shape following years of weakened profits although it is vulnerable to potential political shocks.