Morning Briefing: Markets mixed on Italian referendum result

Markets mixed on Italian referendum result... Oil hits new 16-month high...

Morning Briefing: Markets mixed on Italian referendum result
Steve Randall
Markets mixed on Italian referendum result
Equity markets are reacting the more political uncertainty, this time in Europe as the Italian prime minister quits following a defeat at the polls.

Matteo Renzi announced that he will resign after failing to convince Italians that his program of constitutional and economic reforms is the right route for the country.

It’s the latest political shock following the Brexit vote and US election result and raises concerns over the Italian’s banking sector which needs recapitalization.

Meanwhile, New Zealand’s prime minster has also announced his intention to stand down. The shock news from John Key after 10 years as leader is for personal reasons.

Asian equity markets closed lower despite positive PMI data for China. Shanghai led the losses at 1.2 per cent while Tokyo and Sydney were down around 0.8 per cent.

European indexes are trending higher, despite the Italian result and Eurozone PMI figures showing a decline in November. Frankfurt and Paris are both more than 1.5 per cent higher.

Wall Street and Toronto are expected to open higher. US services/man-manufacturing figures from ISM are due.
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North America (previous session)
US Dow Jones 19,170.42 (-0.11 per cent) +7.17 per cent +7.41 per cent
TSX Composite 15,052.52 (+0.17 per cent) +3.74 per cent +12.64 per cent
Europe (at 4.30am ET)
UK FTSE 6,777.20 (+0.69 per cent) +1.25 per cent +8.64 per cent
German DAX 10,690.62 (+1.69 per cent) +4.21 per cent - 0.57 per cent
Asia (at close)
China CSI 300 3,469.41 (-1.69 per cent) +3.44 per cent -5.66 per cent
Japan Nikkei 18,274.99 (-0.82 per cent) +8.10 per cent -6.30 per cent
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(+1.10 per cent)
(+0.97 per cent)
(-0.93 per cent)
Aus. Dollar

Oil hits new 16-month high
The international oil benchmark Brent has topped $55 for the first time in 16 months. Reuters reports a 19 per cent rise since the OPEC output deal was announced a week ago; US crude has increased 16 per cent and stands above $52.

OPEC’s new deal begins in the New Year with Russia a key non-OPEC member joining while some others are also expected to agree to cuts. However uncertainty over the output of US shale producers continues to add a hint of caution to markets.