Bumpy ride continues for markets as China weighs... Oil lower, gold gains...
Bumpy ride continues for markets as China weighs
The latest wave of concern over the Chinese economy has led to a second day of turbulence for the markets so far, although they are more stable than during the previous session.
Following weak data which prompted a global sell-off with Shanghai down 7 per cent Monday and an early halt to the session, the People’s Bank of China announced that it had injected 130 billion yuan (U$19.9 billion) into the financial system.
Asian markets remained volatile and closed with losses, led by Sydney which closed down 1.63 per cent.
European markets are also lower following Asia’s lead and new data showing the Eurozone’s inflation stayed at 0.2 per cent in December according to official estimates. Energy costs declined while food, alcohol and tobacco prices gained in the month.
Wall Street and Toronto are expected to open lower.
Oil lower, gold gains
Oil prices reversed overnight following some gains Monday. Concern over Chinese demand have hit prices along with a stronger US dollar and analysts assessed that tension between Saudi Arabia and Iran is unlikely to affect production.
Meanwhile gold producers continue to see prices rise as investors opt for the safe haven. If equities remain lower during Tuesday’s session then analysts expect gold prices to rise further. The gains may be short-lived as rising US interest rates generally push prices lower.
The latest wave of concern over the Chinese economy has led to a second day of turbulence for the markets so far, although they are more stable than during the previous session.
Following weak data which prompted a global sell-off with Shanghai down 7 per cent Monday and an early halt to the session, the People’s Bank of China announced that it had injected 130 billion yuan (U$19.9 billion) into the financial system.
Asian markets remained volatile and closed with losses, led by Sydney which closed down 1.63 per cent.
European markets are also lower following Asia’s lead and new data showing the Eurozone’s inflation stayed at 0.2 per cent in December according to official estimates. Energy costs declined while food, alcohol and tobacco prices gained in the month.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,148.94 (-1.58 per cent) | -4.13 per cent | -3.78 per cent |
| TSX Composite | 12,927.15 (-0.64 per cent) | -3.23 per cent | -10.18 per cent |
| Europe (at 6.00am ET) |
|||
| UK FTSE | 6,083.57 (-0.16 per cent) | -2.48 per cent | -5.20 per cent |
| German DAX | 10,178.76 (-1.02 per cent) | -5.33 per cent | +7.45 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,478.78 (+0.28 per cent) | -5.41 per cent | -4.47 per cent |
| Japan Nikkei | 18,374.00 (-0.42 per cent) | -5.80 per cent | +5.54 per cent |
| Other Data (at 6.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 36.91 (-0.41 per cent) |
36.89 (-0.89 per cent) |
1076.60 (+0.13 per cent) |
U$0.7172 |
| Aus. Dollar |
|||
| U$0.7171 | |||
Oil lower, gold gains
Oil prices reversed overnight following some gains Monday. Concern over Chinese demand have hit prices along with a stronger US dollar and analysts assessed that tension between Saudi Arabia and Iran is unlikely to affect production.
Meanwhile gold producers continue to see prices rise as investors opt for the safe haven. If equities remain lower during Tuesday’s session then analysts expect gold prices to rise further. The gains may be short-lived as rising US interest rates generally push prices lower.
