Morning Briefing: World stocks lower as commodities fall

Morning Briefing: World stocks lower as commodities fall

Morning Briefing: World stocks lower as commodities fall World stocks lower as commodities fall
A stronger US dollar has put commodity prices under increased pressure so far Monday. The Fed’s interest rate policy is also weighing on markets.

Asian indexes closed generally higher although Shanghai closed with slim losses as China’s offshore yuan fell against the dollar. Tokyo was closed for a public holiday.

In Europe there is lower sentiment with the price of oil and other commodities declining; copper for example has hit a 6-year low and silver, iron ore, zinc and nickel are all lower. There was positive news on manufacturing though with a Europe flash PMI hitting the highest level since May 2011.

Wall Street and Toronto are expected to open flat.
 
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North America (previous session)
US Dow Jones 17,823.81 (+0.51 per cent) +1.00 per cent +0.08 per cent
TSX Composite 13,433.49 (-0.30 per cent) -3.73 per cent -11.10 per cent
 
Europe (at 6.00am ET)
UK FTSE 6,304.18 (-0.48 per cent) -2.17 per cent - 6.62 per cent
German DAX 11,092.57 (-0.25 per cent) +2.76 per cent +13.97 per cent
 
Asia (at close)
China CSI 300 3,753.34 (-0.56 per cent) +5.10 per cent +45.28 per cent
Japan Nikkei 19,879.81 (+0.10 per cent) +5.60 per cent +14.53 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
43.58
(+2.42 per cent)
40.53
(-3.27 per cent)
1069.90
(-0.59 per cent)
U$0.7461
 
Aus. Dollar
U$0.7178

Economist forecasts Fed to make 3 rate hikes in 2016
The markets are assessing the likely trajectory of the US interest rate increases after some dovish tones from some speakers. However the chief US economist of Renaissance Macro believes that there will be some frequent increases in 2016 with three or possibly four rate rises. Neil Dutta told CNBC that "Underlying inflation dynamics are moving in a direction that's going to pressure the Fed towards a more aggressive path than the markets are pricing in at the moment."
 
Swiss bank begins charging savers in a world first
A small bank in Switzerland is bucking an international trend by charging its clients to look after their money. Alternative Bank Schweiz will apply a negative interest rate of -0.125 per cent on savers in a move which could spread to other institutions. The Swiss central bank applied negative interest rates last year to deter the use of the Swiss Franc as a safe haven investment but most banks shielded customers from the impact with the exception of some large institutional clients. The ABS decision will affect all of its customers with a checking account.