Equities gain despite oil decline... Fed to hold interest rates?...
Equities gain despite oil decline
Global equity markets have started the week with gains despite oil reversing overnight as Iran dashed hopes for an output freeze. The Iranians want to increase their output to 4 million barrels per day before the cap on production takes effect; that’s double their current output levels. Brent crude has slipped below $40.
Stock markets are higher so far with Asian indexes closing with broad gains. Although there are regional concerns over China and oil prices, investors have been buoyed by the European Central Bank’s increased stimulus measures.
European markets are higher too, following the Asian lead.
Central banks are in focus this week with Japan’s interest rate decision due Tuesday, the Fed meeting this week and announcing interest rates Wednesday and the Bank of England meeting Thursday. The UK announces its budget Wednesday.
Wall Street and Toronto are expected to open higher Monday.
Fed to hold interest rates?
When the Federal Reserve meets this week it is unlikely to decide on an interest rate rise. With economic conditions still on shaky ground the Fed is likely to slow the pace of rises, with the next one expected to come in June. Some though are calling for a cut to offset the risks of recession. Former Minneapolis Fed chief Narayana Kocherlakota told Reuters that it would provide “insurance” for the policymakers.
Global equity markets have started the week with gains despite oil reversing overnight as Iran dashed hopes for an output freeze. The Iranians want to increase their output to 4 million barrels per day before the cap on production takes effect; that’s double their current output levels. Brent crude has slipped below $40.
Stock markets are higher so far with Asian indexes closing with broad gains. Although there are regional concerns over China and oil prices, investors have been buoyed by the European Central Bank’s increased stimulus measures.
European markets are higher too, following the Asian lead.
Central banks are in focus this week with Japan’s interest rate decision due Tuesday, the Fed meeting this week and announcing interest rates Wednesday and the Bank of England meeting Thursday. The UK announces its budget Wednesday.
Wall Street and Toronto are expected to open higher Monday.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,213.31 (+1.28 per cent) | +7.76 per cent | -3.02 per cent |
| TSX Composite | 13,522.00 (+1.07 per cent) | +9.21 per cent | -8.21 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 6,167.22 (+0.45 per cent) | +8.05 per cent | -8.51 per cent |
| German DAX | 9,974.26 (+1.46 per cent) | +11.23 per cent | -16.19 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,065.69 (+1.57 per cent) | +3.44 per cent | -15.26 per cent |
| Japan Nikkei | 17,233.75 (+1.74 per cent) | +15.26 per cent | -10.49 per cent |
| Other Data (at 6.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 39.78 (-1.51 per cent) |
37.82 (-1.77 per cent) |
1259.10 (-0.02 per cent) |
U$0.7547 |
| Aus. Dollar |
|||
| U$0.7544 | |||
Fed to hold interest rates?
When the Federal Reserve meets this week it is unlikely to decide on an interest rate rise. With economic conditions still on shaky ground the Fed is likely to slow the pace of rises, with the next one expected to come in June. Some though are calling for a cut to offset the risks of recession. Former Minneapolis Fed chief Narayana Kocherlakota told Reuters that it would provide “insurance” for the policymakers.
