Morning Briefing: World stocks tumble, oil recovers from 7-year lows

Morning Briefing: World stocks tumble, oil recovers from 7-year lows

Morning Briefing: World stocks tumble, oil recovers from 7-year lows World stocks tumble, oil recovers from 7-year lows
There’s likely to be a bumpy ride for equities Tuesday as investors feel the pressure from the oil rout in the previous session. With US and Brent falling more than 5 per cent Monday North American markets took the brunt of the impact, closing with losses.

Oil has since recovered some of the lost ground but with OPEC holding fast on production the supply glut is sharply in focus.

So far Tuesday the weak lead from Wall Street has punished global stocks with Asian markets closing lower and most European indexes also in the red so far.

Wall Street and Toronto are expected to open lower.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 17,730.51 (-0.66 per cent) -1.00 per cent -0.68  per cent
TSX Composite 13,042.83 (+2.37 per cent) -3.77 per cent -7.79 per cent
 
Europe (at 6.00am ET)
UK FTSE 6,193.67 (-0.48 per cent) -2.52 per cent -7.17 per cent
German DAX 10,837.21 (-0.45 per cent) -1.37 per cent +8.21 per cent
 
Asia (at close)
China CSI 300 3,623.02 (-1.75 per cent) -4.49 per cent +11.38 per cent
Japan Nikkei 19,492.60 (-1.04 per cent) +1.18 per cent +8.68 per cent
 
Other Data (at 6.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
41.29
(+1.25 per cent)
37.92
(+0.40 per cent)
1071.10
(-0.38 per cent)
U$0.7385
 
Aus. Dollar
U$0.7215
 
Better news on China, US weaker
China’s economy may be seeing some recovery but other powerhouses including the US and Britain appear to show weakness. That’s according to the OECD which reported Tuesday that its monthly growth index for October which showed China up from 98.3 to 98.4. The long-term average for the index is 100. The US weakened from 99.2 to 99.1; Britain was down from 99.5 to 99.3; Japan was down from 99.9 to 99.8. Brazil and India both improved their rankings. Canada remained at 99.5 for the third consecutive month.
 
Workers benefit from low inflation says study
Global wages are receiving a boost from the current climate of low inflation a report suggests. The study by the Korn Ferry Hay Group released Tuesday says that low inflation means that the real value of workers’ wages is at a three year high. A nominal wage growth of 4.9 per cent is roughly in line with recent years but the effect of oil prices on inflation means that workers have more cash in their wallets and are spending it, further boosting the economy. Chinese workers are benefitting the most from current inflation conditions with a wage increase of 6.3 per cent in real terms predicted for 2016.