Morning Briefing: Chinese stocks down 6 per cent

Morning Briefing: Chinese stocks down 6 per cent

Morning Briefing: Chinese stocks down 6 per cent Chinese stocks down 6 per cent
Volatile oil prices, the lower lead from Wall Street and the start of the Fed’s two-day monetary policy meeting gave Chinese investors the jitters Tuesday, prompting a late sell-off of equities. Shanghai was down more than 6 per cent at the close and the ripple effect dragged other Asian markets lower. Only Sydney escaped the impact as it was closed for the Australia Day holiday.

European markets are down almost 1 per cent so far, following the Chinese sell-off and oil and gas stocks have been hit by the wild fluctuations in oil prices in recent sessions.

Wall Street and Toronto are expected to open lower.
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North America (previous session)
US Dow Jones 15,885.22 (-1.29 per cent) -9.50 per cent -10.14 per cent
TSX Composite 12,143.16 (-1.99 per cent) -8.77 per cent -17.94 per cent
Europe (at 5.30am ET)
UK FTSE 5,837.66 (-0.67 per cent) -6.67 per cent -14.81 per cent
German DAX 9,697.38 (-0.40 per cent) -9.76 per cent -11.26 per cent
Asia (at close)
China CSI 300 2,940.51 (-6.02 per cent) -23.39 per cent -18.50 per cent
Japan Nikkei 16,708.90 (-2.35 per cent) -10.98 per cent -4.35 per cent
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(+0.56 per cent)
(+0.10 per cent)
(+0.71 per cent)
Aus. Dollar

Is the world running out of oil storage?
While the price of oil continues to bounce around there is another looming problem for the sector. Goldman Sachs says that the world is running out of oil storage capabilities. Analyst Jeff Currie told CNBC that facilities are under pressure. For example, at Cushing, Oklahoma “there's about three million barrels of spare storage capacity, which is nothing in the grand scheme of things.” Demand for oil remains weak at a time when Iran’s stocks are now adding to the glut.
Is Mark Carney ready for a move?
Former Bank of Canada governor Mark Carney will come to the end of his agreed five-year term at the Bank of England this year and says he will wait to decide whether he will stay. Speaking to British MP’s Mr Carney said that he will consider his position at the end of 2016. He also spoke on oil saying that the low prices were a “net positive” for the global economy.
Iranian premier talks trade in Europe
Iran’s President Hassan Rouhani is discussing trade with European leaders as the lifting of sanctions against his country open up opportunities on both sides. The leader has already been in Rome and will head next to Paris. Reuters reports that the 120-strong trade delegation has already signed billions of dollars worth of deals including contracts for pipelines and steel.

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