Morning Briefing: World equities mixed on data, commodities

World equities mixed on data, commodities... China to boost stimulus says Goldman Sachs...

Steve Randall
World equities mixed on data, commodities
Gold and oil prices remain higher Wednesday. Precious metal producers have been boosted by reduced calls for a US interest rate rise while oil is receiving support from hopes that major producers are keen to stabilize the market.

Asian markets have been focusing on the weaker chance of a move this month by the Fed. Japan in particular has been hit by the outlook as it has subdued the US dollar with the corresponding rise in the yen impacting exporters. It may also require the BoJ to adjust its policy which was banking on a September rate rise.

Australia’s GDP figures show a dip in the second quarter (down from 1 per cent to 0.5 per cent) while year-over-year growth was (as expected) 3.3 per cent.

European markets are trading higher despite data showing German industrial production slumped.
Expectation was for a rise of 0.1 per cent in July month-over-month and 0.2 per cent year-over-year. Instead, there was a decline of 1.5 per cent in the month and a decline of 1.2 per cent year-over-year.

UK data on industrial and manufacturing production is due later and despite some optimistic tones recently, analysts are expecting a decline for July. Meanwhile, a PwC survey ranks London as the world’s top city for opportunities with a good outlook if it manages to capitalize post-Brexit.

BoE governor, Canadian Mark Carney, will testify before UK lawmakers for the first time since the country’s vote to leave the EU. He is due to speak at 9.15am ET.

Wall Street and Toronto are expected to open higher. The Bank of Canada will announce its interest rate decision but isn’t expected to make any changes.
  Latest 1 month ago 1 year ago
North America (previous session)
US Dow Jones 18,538.12 (+0.25 per cent) -0.03 per cent +15.13 per cent
TSX Composite 14,813.02 (+0.12 per cent) +1.12 per cent +9.90 per cent
Europe (at 4.30am ET)
UK FTSE 6,831.18 (+0.08 per cent) +0.56 per cent +12.46 per cent
German DAX 10,704.80 (+0.17 per cent) +3.26 per cent +5.90 per cent
Asia (at close)
China CSI 300 3,340.82 (-0.05 per cent) +4.23 per cent +2.78 per cent
Japan Nikkei 17,012.44 (-0.41 per cent) +4.66 per cent -4.75 per cent
Other Data (at 2.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(+0.74 per cent)
(-0.83 per cent)
(-0.10 per cent)
Aus. Dollar

China to boost stimulus says Goldman Sachs
Weakness in the Chinese economy is set to provide a second round of monetary policy easing in China according to an assessment by Goldman Sachs.

The bank told clients Tuesday that streamlining approvals for investment projects and ensuring projects were carried out in a timely manner are signs that officials are keen to shore up fixed asset investments through penalty and reward.