Morning Briefing: Markets mixed despite oil agreement

Markets mixed despite oil agreement... G20 leaders focus on income inequality...

Steve Randall
Markets mixed despite oil agreement
World equity markets are mixed Tuesday despite a positive reaction to a new agreement between Russia and Saudi Arabia on stabilizing the oil market.

Initial optimism was soon tainted by scepticism as analysts questioned the effectiveness of the deal especially following comments by the Saudi oil minister that an output freeze was not imminent but would be an option.

Gold prices have rallied as expectation fades of a Fed interest rate hike this month.

Asian markets considered the detail in the Australian central bank’s decision to hold interest rates at 1.5 per cent. The RBA said that low inflation, rising home prices, the volatile commodities markets and mixed labour market were all factors in its decision. Sydney’s ASX closed lower while its peers ended positive.

European indexes are trending higher with London slightly behind. German factory orders increased 0.2 per cent in July according to new data, missing a forecast by Bloomberg of 0.5 per cent. Year-over-year orders were down 0.7 per cent.

Wall Street and Toronto are expected to open higher. US non-manufacturing sectors data from ISM is due this afternoon.
  Latest 1 month ago 1 year ago
North America (previous session)
US Dow Jones 18,491.96 (+0.39 per cent) -0.28 per cent +14.84 per cent
TSX Composite 14,795.70 (+0.76 per cent) +1.00 per cent +9.77 per cent
Europe (at 4.30am ET)
UK FTSE 6,863.42 (-0.23 per cent) +1.03 per cent +13.58 per cent
German DAX 10,681.31 (+0.09 per cent) +3.03 per cent +6.41 per cent
Asia (at close)
China CSI 300 3,342.63 (+0.69 per cent) +4.29 per cent -0.69 per cent
Japan Nikkei 17,081.98 (+0.26 per cent) +5.09 per cent -3.99 per cent
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(-0.61 per cent)
(+1.35 per cent)
(+0.23 per cent)
Aus. Dollar

G20 leaders focus on income inequality
Rising income inequality is a risk that must be tackled, G20 leaders have agreed. At their conference in China the heads of the 20 largest economies talked about the dangers if ignoring those on low wages which is driving populism.

"Countries should deploy proven tools to reduce excessive inequality and raise economic prospects, particularly for low income groups and workers," said IMF chief Christine Lagarde.

President Obama said that increased globalization must benefit the broader population; British PM Theresa May called for increased free trade.