Morning Briefing: World markets lower following the Fed

Morning Briefing: World markets lower following the Fed

Morning Briefing: World markets lower following the Fed World markets lower following the Fed
Investors in Asia and Europe have been digesting the decision by the Fed to hold-steady on interest rates Wednesday, but the cautious tone set by the US central bank has only intensified caution for the markets.

Oil prices are trending lower and Brexit is still a key factor in the uncertainty sweeping the markets. The Fed’s note that the rate of job gains has slowed is adding to concern over the global economy.

The possibility of the UK leaving the EU has also led to a further decline in bond yields for markets including UK, Germany and Japan.

Asian indexes closed lower as the Bank of Japan opted to stick with its current monetary policy. The yen has surged against the US dollar.

In Europe, the markets are lower so far as the Fed and BoJ decisions are assessed.

Wall Street and Toronto are also expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 17,640.17 (-0.20 per cent) +0.40 per cent -1.48 per cent
TSX Composite 13,923.45 (+0.28 per cent) +0.22 per cent -5.62 per cent
 
Europe (at 5.30am ET)
UK FTSE (previous) 5,936.48 (-0.51 per cent) -3.49 per cent -11.53 per cent
German DAX 9,547.82 (-0.61 per cent) -4.07 per cent -13.55 per cent
 
Asia (at close)
China CSI 300 3,094.67 (-0.70 per cent) -0.02 per cent -38.90 per cent
Japan Nikkei 15,434.14 (-3.05 per cent) -6.27 per cent -23.81 per cent
 
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
48.26
(-1.45 per cent)
47.33
(-1.42 per cent)
1306.00
(+1.37 per cent)
U$0.7705
 
Aus. Dollar
U$0.7365

 
Oil at 3-week low
Oil prices are firmly below $50 and have hit a 3-week low as data showed a lower draw from US stockpiles and on fears over Brexit and other global issues.

"It is mainly risk aversion ahead of the Brexit vote next week so we see some profit-taking on recent long positions ahead of this event," Hans van Cleef, energy economist at ABN Amro told Reuters.