Asian sell-off, Europe also weak... Oil demand set to drop further says IEA... Airlines agree to curb emissions...
Asian sell-off, Europe also weak
Tuesday’s stock trading has continued the sell-off which started on Wall Street in the previous session. Many Asian markets are still closed for Lunar New Year holidays but Tokyo was down sharply to close 5.40 per cent lower; Sydney lost almost 3 per cent.
The weak sentiment is also showing in Europe where concern about growth and US interest rates is never far from investors’ thoughts. Figures on German industrial output dipped 1.2 per cent month-over-month and Italian banks lost value on concern over bad loans.
Wall Street and Toronto are expected to open lower.
Oil demand set to drop further says IEA
The latest assessment of the oil market makes for depressing reading for the industry. The International Energy Agency says that it expects demand to “ease back considerably” while stockpiles continue to increase. The IEA says that there was evidence of a slowdown in many economies in the fourth quarter of 2015, including the US, Europe and China. Non-OPEC producers will continue to slow production, the report forecasts. On prices it says that some analysts are too bearish and that $10 a barrel is an “extreme” prediction but it does see prices continuing low before “better days” ahead.
Airlines agree to curb emissions
The global aviation industry has agreed to curb its carbon dioxide emissions. The move was announced in Montreal at the UN’s International Civil Aviation Organization which said that all new aircraft delivered from 2028 would be subject to the agreed limits. Some environmental groups have questioned the effectiveness of the agreement given that the proposals do not include airplanes delivered before the 2028 deadline and those currently in operation.
Tuesday’s stock trading has continued the sell-off which started on Wall Street in the previous session. Many Asian markets are still closed for Lunar New Year holidays but Tokyo was down sharply to close 5.40 per cent lower; Sydney lost almost 3 per cent.
The weak sentiment is also showing in Europe where concern about growth and US interest rates is never far from investors’ thoughts. Figures on German industrial output dipped 1.2 per cent month-over-month and Italian banks lost value on concern over bad loans.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 16,027.05 (-1.10 per cent) | -1.95 per cent | -9.60 per cent |
| TSX Composite | 12,535.40 (-1.79 per cent) | +0.72 per cent | -16.99 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 5,727.13 (+0.66 per cent) | -3.13 per cent | -16.24 per cent |
| German DAX | 9,012.74 (+0.37 per cent) | -8.49 per cent | -15.48 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 | 16,085.44 (-5.40 per cent) | -9.11 per cent | -9.18 per cent |
| Other Data (at 5.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 33.26 (+1.16 per cent) |
30.39 (+2.36 per cent) |
1188.70 (+0.77 per cent) |
U$0.7195 |
| Aus. Dollar |
|||
| U$0.7033 | |||
Oil demand set to drop further says IEA
The latest assessment of the oil market makes for depressing reading for the industry. The International Energy Agency says that it expects demand to “ease back considerably” while stockpiles continue to increase. The IEA says that there was evidence of a slowdown in many economies in the fourth quarter of 2015, including the US, Europe and China. Non-OPEC producers will continue to slow production, the report forecasts. On prices it says that some analysts are too bearish and that $10 a barrel is an “extreme” prediction but it does see prices continuing low before “better days” ahead.
Airlines agree to curb emissions
The global aviation industry has agreed to curb its carbon dioxide emissions. The move was announced in Montreal at the UN’s International Civil Aviation Organization which said that all new aircraft delivered from 2028 would be subject to the agreed limits. Some environmental groups have questioned the effectiveness of the agreement given that the proposals do not include airplanes delivered before the 2028 deadline and those currently in operation.
