Oil, Yellen weighing... Gold is gaining but mining mostly weak...
Oil, Yellen weighing
Further decline in oil prices and Fed chair Janet Yellen’s comments are weighing on world markets Thursday.
There was thin trade in Asia with China and Taiwan still closed for holidays and joined today by Japan. Hong Kong and Korea re-opened and closed lower with Australia’s main index the only major to end higher.
European markets are lower as weak demand for oil hits energy stocks, earnings from banks disappointed and Janet Yellen’s comments dampened expectations of US growth.
Wall Street and Toronto are expected to open lower ahead of further comments from the Fed chair due at 10am ET.
Gold is gaining but mining mostly weak
Gold producers are seeing gains that other commodity industries can only dream of currently. The metal hit a ten-month high of $1,214.64 overnight and has gained in nine of the past ten days. The increase is usually expected when equities are volatile although can come under pressure from a stronger US dollar.
Meanwhile mining giant Rio Tinto has reported a 51 per cent slump in full-year underlying earnings to $4.54 billion, highlighting the extent of weaker commodity prices and demand. The firm had a full-year loss of $866 million compared to 2014’s profit of $6.5 billion. Dividends were held at 25 cents per share but are expected to be lower in the quarters ahead.
Further decline in oil prices and Fed chair Janet Yellen’s comments are weighing on world markets Thursday.
There was thin trade in Asia with China and Taiwan still closed for holidays and joined today by Japan. Hong Kong and Korea re-opened and closed lower with Australia’s main index the only major to end higher.
European markets are lower as weak demand for oil hits energy stocks, earnings from banks disappointed and Janet Yellen’s comments dampened expectations of US growth.
Wall Street and Toronto are expected to open lower ahead of further comments from the Fed chair due at 10am ET.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 15,914.74 (-0.62 per cent) | -2.95 per cent | -10.90 per cent |
| TSX Composite | 12,185.72 (-0.79 per cent) | -1.08 per cent | -19.57 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 5,545.33 (-2.24 per cent) | -5.56 per cent | -18.67 per cent |
| German DAX | 8,797.84 (-2.43 per cent) | -10.46 per cent | -18.18 per cent |
| Asia (at close) |
|||
| China CSI 300 | 2,963.79 (-0.70 per cent) | -11.83 per cent | -10.52 per cent |
| Japan Nikkei | 15,713.39 (-2.31 per cent) | -11.21 per cent | -10.99 per cent |
| Other Data (at 6.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 30.53 (-1.01 per cent) |
26.79 (-2.40 per cent) |
1224.10 (+2.47 per cent) |
U$0.7162 |
| Aus. Dollar |
|||
| U$0.7045 | |||
Gold is gaining but mining mostly weak
Gold producers are seeing gains that other commodity industries can only dream of currently. The metal hit a ten-month high of $1,214.64 overnight and has gained in nine of the past ten days. The increase is usually expected when equities are volatile although can come under pressure from a stronger US dollar.
Meanwhile mining giant Rio Tinto has reported a 51 per cent slump in full-year underlying earnings to $4.54 billion, highlighting the extent of weaker commodity prices and demand. The firm had a full-year loss of $866 million compared to 2014’s profit of $6.5 billion. Dividends were held at 25 cents per share but are expected to be lower in the quarters ahead.
