Morning Briefing: World markets edge higher ahead of the Fed

Morning Briefing: World markets edge higher ahead of the Fed

Morning Briefing: World markets edge higher ahead of the Fed World markets edge higher ahead of the Fed
Most major equity indexes are higher so far Wednesday ahead of the Fed’s interest rate decision. There are few bets on any change this month with July or September being the favoured timing.

Brexit is also still on the minds of investors together with the BoJ meeting tomorrow and the current decline in oil prices.
However, Asian markets closed with gains for most, although Sydney and Seoul ended lower. China’s main index was up despite Chinese A-shares being left out of an emerging markets index from MSCI over concerns including restricted access to the market.

European indexes are higher too ahead of the Fed.

Wall Street and Toronto are expected to open higher.
 
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North America (previous session)
US Dow Jones 17,674.82 (-0.33 per cent) +0.80 per cent -0.65 per cent
TSX Composite 13,884.23 (-0.78 per cent) +0.99 per cent -5.91 per cent
 
Europe (at 5.30am ET)
UK FTSE (previous) 5,969.35 (+0.77 per cent) -2.76 per cent -11.04 per cent
German DAX 9,604.23 (+0.89 per cent) -3.50 per cent -12.57 per cent
 
Asia (at close)
China CSI 300 3,116.37 (+1.31 per cent) +1.35 per cent -40.31 per cent
Japan Nikkei 15,919.58 (+0.38 per cent) -3.00 per cent -21.92 per cent
 
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
49.12
(-1.42 per cent)
47.94
(-1.13 per cent)
1285.10
(-0.23 per cent)
U$0.7791
 
Aus. Dollar
U$0.7401

 
Chinese investors keen to trade in global commodities
A report suggests that investors on the Chinese mainland want to increase their trade in global commodities as the country’s authorities tighten restrictions on equity market speculation. There is also fear of the yuan’s depreciation.

Marex Spectron Group’s Simon van den Born told Bloomberg that its revenues from China has almost doubled this year amid a “tumultuous rise in retail-type or investor-type trading.”

He said Chinese investors have large levels of funds: “it’s money looking for opportunities,” van den Born said.
 
Canadian household debt eases but still near record
Canadians owe $1.65 for each dollar of disposable income according to Statistics Canada. The debt ratio for the first quarter of 2016 was 165.3 per cent, slightly below the 1.64 per cent of the fourth quarter of 2015.

The near-record high level of debt was driven by mortgage borrowing which accounted for 65.6 per cent household debt, continuing the upward trend which began in the first quarter of 2010.

Household sector net worth at market value rose 1.2 per cent in the first quarter to $9,633 billion. On a per capita basis, household net worth was $266,900. Financial assets increased 0.7 per cent, the weakest first quarter growth since 2009.