Morning Briefing: Geopolitics, Fed in focus

Geopolitics, Fed in focus
Markets are generally higher Monday as investors weigh the almost-certain increased in US interest rates and several political events.

Meanwhile, oil prices remain subdued by rising US stockpiles; gold prices are higher on political concerns but that increase is subdued by the expected Fed move.

Asian markets closed mostly higher with Seoul higher following the impeachment of South Korea’s president; Tokyo managed a positive conclusion to the session despite weak core manufacturing orders and a rising yen. Sydney was the laggard of the session as energy stocks dragged.

European markets are focused on political events with elections in Holland this week. The campaign has seen a rise in far-right support and anti-EU sentiment. Meanwhile, lawmakers in the UK are expected to give the final go-ahead for prime minister Theresa May to formally begin the country’s exit from the EU. ECB president Mario Draghi speaks later.

Wall Street and Toronto are expected to open flat. 
 

	Latest	1 month ago	1 year ago
North America (previous session)
US Dow Jones	20,902.98 (+0.21 per cent)	+2.40 per cent	+21.43 per cent
TSX Composite	15,506.68 (+0.06 per cent)	-1.59 per cent	+14.68 per cent
Europe (at 5.00am ET)
UK FTSE	7,360.04 (+0.23 per cent)	+1.11 per cent	+19.87 per cent
German DAX	11,982.51 (+0.10 per cent)	+1.70 per cent	+21.81 per cent
Asia (at close)
China CSI 300	3,458.10 (+0.88 per cent)	+0.64 per cent	+14.57 per cent
Japan Nikkei	19,633.75 (+0.15 per cent)	+0.90 per cent	+15.91 per cent
Other Data (at 5.00am ET)
Oil (Brent)	Oil (WTI)	Gold	Can. Dollar
51.13 (-0.47 per cent)	48.17 (-0.66 per cent)	1207.30 (+0.49 per cent)	U$0.7435
			Aus. Dollar
			U$0.7577

US oil supplies main concern
The main concern on the oil markets is the continued increase in US output which is reducing the impact of OPEC production caps.
US stockpiles and rig counts means that the global supply glut is not declining as OPEC members had hoped, which may see weakening of the group’s resolve to maintain lower output.

Meanwhile, prices are pressured by a sell-off as investors fear prices may decline further.

“Few would bet against a further selling spree,” PMV analysts Stephen Brennock told Bloomberg