Morning Briefing: Equities higher despite oil caution

Equities higher despite oil caution... Oil set for $10 rise?...

Steve Randall
Equities higher despite oil caution
World equity markets are trending higher Thursday despite an easing of oil prices from the 5 per cent rise in the previous session as investors await firm details of the OPEC deal.

The provisional deal in Algeria will still require agreement between OPEC – and possibly some non-OPEC – producers when they meet in November; specifically, how the output of each country will need to be adjusted to accommodate a drop from 33.24 million barrels per day to 32.5 million bpd.

Asian equities were mostly higher, led by Tokyo and Sydney. Indian stocks declined on news of conflict in the disputed territory of Kashmir between Indian and Pakistani troops.

European markets are higher so far as Deutsche continued to recover and German unemployment data hit expectations. The country’s consumer price index will be updated later with expectation for some growth in inflation.

Wall Street and Toronto are expected to open higher. US pending home sales data is due later.
  Latest 1 month ago 1 year ago
North America (previous session)
US Dow Jones 18,339.24 (+0.61 per cent) -0.31 per cent +14.61 per cent
TSX Composite 14,731.43 (+1.19 per cent) +0.34 per cent +13.00 per cent
Europe (at 4.30am ET)
UK FTSE 6,917.11 (+0.99 per cent) +1.16 per cent +17.06 per cent
German DAX 10,536.29 (+0.94 per cent) -0.08 per cent +11.49 per cent
Asia (at close)
China CSI 300 3,244.39 (+0.42 per cent) -1.92 per cent +2.06 per cent
Japan Nikkei 16,693.71 (+1.39 per cent) -0.26 per cent -1.40 per cent
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(-1.29 per cent)
(-0.79 per cent)
(+0.11 per cent)
Aus. Dollar
Oil set for $10 rise?
The deal between OPEC producers to cap oil output could add as much as $10 to the barrel price according to Goldman Sachs.

However, that depends on the cap being strictly adhered to by the ratifying nations and Goldman’s analysts are skeptical.

“It has historically taken a fall in oil demand to ensure quota compliance, as in that case, production is forced lower by a decline in refinery intake around the world. This is not the case today with resilient demand growth,” analysts wrote in a new report.