Morning Briefing: World markets broadly higher despite weaker commodities

Morning Briefing: World markets broadly higher despite weaker commodities

Morning Briefing: World markets broadly higher despite weaker commodities World markets broadly higher despite weaker commodities
Investors are still awaiting details of President Trump’s tax reforms but for now the record highs for Wall Street and regional issues are dominating the markets; shaking-off declining prices for oil, gold and many other commodities.

Asian markets closed mostly higher with Japan’s Nikkei flat despite strong gains for Toshiba on a potentially high valuation for its chip unit. Sydney gained following comments from the central bank that interest rates are unlikely to be cut again soon.

European markets are focusing on data and corporates. Eurozone CPI hit expectations but the UK’s GDP was down year-over-year in the fourth quarter (up quarter-over-quarter). There is better news for UK exports which soared at the end of 2016, doubling expectation, amid a weaker pound.

Wall Street and Toronto are expected to open higher. US homes data and Canadian retail sales figures are due.
 

 

Latest

1 month ago

1 year ago

 

North America (previous session)

US Dow Jones

20,743.00 (+0.58 per cent)

+4.62 per cent

+24.80 per cent

TSX Composite

15,922.37 (+0.53 per cent)

+2.41 per cent

+23.95 per cent

 

Europe (at 5.00am ET)

UK FTSE

7,288.08 (+0.18 per cent)

+1.25 per cent

+20.71 per cent

German DAX

11,976.37 (+0.07 per cent)

+2.98 per cent

+25.10 per cent

 

Asia (at close)

China CSI 300

3,489.76 (+0.20 per cent)

+4.02 per cent

+11.89 per cent

Japan Nikkei

19,379.87 (-0.01 per cent)

+1.26 per cent

+20.29 per cent

 

Other Data (at 5.00am ET)

Oil (Brent)

Oil (WTI)

Gold

Can. Dollar

56.29

(-0.65 per cent)

54.02

(+0.57 per cent)

1238.70

(-0.02 per cent)

U$0.7599

 

Aus. Dollar

U$0.7686



Commodities need to show increased demand says Goldman Sachs
While commodities have seen some gains recently from geopolitical activity, what is required now are signs of increased demand.

Goldman Sachs released a client note late Tuesday which calls for proof that the OPEC output cut is really decreasing the supply glut.

"Markets need to see that the OPEC supply cuts generate real inventory draws and the strong manufacturing survey and Chinese credit data create real activity. In other words, 'show me the activity:' real demand, real stock draws and empty warehouses," the note says.

Goldman remains subdued in its expectation for gold prices with its 3, 6 and 12 month outlooks roughly in line with current prices.