Morning Briefing: Oil slips on OPEC talks concern

Oil slips on OPEC talks concern... Don’t be complacent on interest rates says Fed’s Dudley...

Steve Randall
Oil slips on OPEC talks concern
The optimism of investors and analysts that OPEC members would agree to measures to support the oil market has kept prices rising in the past week. That sentiment slipped Wednesday.

Oil prices are down more than 1 per cent overnight, not enough to erase recent gains but it could be the start of a new decline.

Gold prices are also lower this morning ahead of the release of July’s Fed monetary committee minutes. An indication of a September rate rise would almost certainly exacerbate that decline.

Asian equities had a mostly positive session with Japan leading the gains as the yen stabilized against the US dollar. Hong Kong and Korea were the losers of the session.

China announced that it would allow access to its Shenzhen stock market which is part of Beijing’s policy of opening up its financial markets.

European indexes are mostly lower Wednesday ahead of the Fed and with the decline in commodity prices.

Wall Street and Toronto are also expected to be subdued before the Fed minutes are released.
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North America (previous session)
US Dow Jones 18,552.02 (-0.45 per cent) +0.19 per cent +6.15 per cent
TSX Composite 14,703.44 (-0.50 per cent) +1.53 per cent +3.17 per cent
Europe (at 4.30am ET)
UK FTSE 6,885.36 (-0.12 per cent) +3.24 per cent +5.12 per cent
German DAX 10,598.48 (-0.73 per cent) +5.28 per cent -3.12 per cent
Asia (at close)
China CSI 300 3,373.05 (-0.15 per cent) +2.95 per cent -17.28 per cent
Japan Nikkei 16,745.64 (+0.90 per cent) +1.50 per cent -19.79 per cent
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(-1.18 per cent)
(-1.09 per cent)
(-0.61 per cent)
Aus. Dollar
Don’t be complacent on interest rates says Fed’s Dudley
The president of the New York Fed says the markets are too complacent on interest rates and investors should be ready for a September rate rise. William Dudley told Fox Business Network that the markets are not prepared for the potential higher cost of borrowing.

Although he cannot be certain that there will be a rate change following “We’re edging closer towards the point in time where it will be appropriate, I think, to raise interest rates further.”

His Atlanta counterpart also said Tuesday that he is confident that the economy is back on track. Dennis Lockhart said there could even be two rate rises this year.