Morning Briefing: Yellen’s cautious tone boosts markets

Morning Briefing: Yellen’s cautious tone boosts markets

Morning Briefing: Yellen’s cautious tone boosts markets Yellen’s cautious tone boosts markets
Fed chair Janet Yellen spoke Monday and, despite not giving a clear indication over interest rates, sounded a cautious tone on the US economy.

World markets have reacted Tuesday with sentiment boosted by Yellen’s words as analysts further shift from a June rate rise and many now thinking July may not be the year’s first hike either.

Asian markets closed mixed. The Australian central bank followed expectations by announcing a hold-steady on its interest rate and Sydney’s ASX gained. In India, its central bank also said it was leaving policy unchanged.

European indexes are also higher on Yellen and oil prices. Germany’s DAX is heading towards a 2 per cent gain.
Wall Street and Toronto are expected to open higher.
 
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North America (previous session)
US Dow Jones 17,920.33 (+0.64 per cent) +1.01 per cent +0.40 per cent
TSX Composite 14,276.16 (+0.35 per cent) +4.19 per cent -4.55 per cent
 
Europe (at 5.30am ET)
UK FTSE (previous) 6,315.90 (+0.68 per cent) +3.10 per cent -7.18 per cent
German DAX 10,277.47 (+1.55 per cent) +4.13 per cent -8.21 per cent
 
Asia (at close)
China CSI 300 3,177.05 (-0.05 per cent) +1.49 per cent -39.26 per cent
Japan Nikkei 16,675.45 (+0.58 per cent) +3.53 per cent -18.50 per cent
 
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
50.87
(+0.63 per cent)
49.96
(+0.52 per cent)
1243.50
(-0.31 per cent)
U$0.7833
 
Aus. Dollar
U$0.7449
 
Brent crude near 7-month high but supply concerns
The international crude oil benchmark is near a 7-month high Tuesday but concerns over supplies are growing. Brent is trading at near $51 as the low dollar and supply issues support the market. US stocks are also believed to be lower again this week but there are signs that producers will begin increasing production. Baker Hughes says that US producers have increased rigs for the second time this year.
 
US calls again for easier access to China
A delegation of US officials has reiterated calls for China to lower the regulatory burden for foreign companies. Reuters reports that business groups are concerned that the Chinese appear to favour domestic firms and make it harder for foreign firms to operate there. Talks continued in Beijing for a second day.