Morning Briefing: World stocks mixed following Fed

World stocks mixed following Fed... Oil will be around $50 says Pimco CIO...

Steve Randall
World stocks mixed following Fed
The latest minutes of the Fed’s monetary policy committee has given food for thought for the world’s investors and Thursday was the first chance for most of them to react.

Following flat ends to the session in North America, Asian and European markets have given their assessment of the minutes, with a split in voting members keeping the chance of a September rate rise very much alive.

Regional data has also impacted Asian indexes with Japan’s exports weaker in July, although roughly in line with forecasts. Exporters were dealt another blow this morning as the stronger yen hit their stock values.

Australia’s employment data was better than expected but failed to give Sydney’s ASX a positive end to the session. Only Hong Kong and Seoul closed higher.

Meanwhile, Moody’s Investment Service upgraded China’s outlook with growth of 6.6 per cent now expected for 2016, compared to its previous forecast of 6.3 per cent. For 2017, Moody’s sees 6.3 per cent, upgraded from 6.1 per cent.

European markets are mostly trending higher with regional earnings taking centre stage. Germany’s DAX is the best performer so far.

Wall Street and Toronto are expected to open higher.
  Latest 1 month ago 1 year ago
North America (previous session)
US Dow Jones 18,573.94 (+0.12 per cent) +0.31 per cent +5.86 per cent
TSX Composite 14,697.60 (-0.04 per cent) +1.14 per cent +3.55 per cent
Europe (at 4.30am ET)
UK FTSE 6,872.32 (+0.19 per cent) +2.64 per cent +5.30 per cent
German DAX 10,577.26 (+0.38 per cent) +5.11 per cent -3.10 per cent
Asia (at close)
China CSI 300 3,364.49 (-0.25 per cent) +3.14 per cent -12.05 per cent
Japan Nikkei 16,486.01 (-1.55 per cent) -0.07 per cent -19.79 per cent
Other Data (at 4.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(-0.10 per cent)
(+0.58 per cent)
(+0.50 per cent)
Aus. Dollar
Oil will be around $50 says Pimco CIO
The ‘right’ price for oil over the next few years will be somewhere around $50. Mihir Worah, CIO of Pimco told CNBC that supply and demand is balanced “in the fifities” which is not too far ahead of today’s price.

On the subject of an output cap, which has led to a boost for oil prices in the past week, Worah says that with Russia and Saudi Arabia pumping at high levels “freezing output is fairly meaningless.”