Equities rise as Japan, commodities in focus... Citi says Brexit fears will ease, commodities set to rise...
Equities rise as Japan, commodities in focus
The election which secured power for Japan’s prime minister in the nation’s upper house has lifted stocks for a second day.
In a speech late Monday, Shinzo Abe promised “bold investment” to help boost the turbulent economy. His comments saw a weakening yen, giving a lift to exporters on the Nikkei. Elsewhere in Asia, markets rose along with Tokyo and closed broadly higher.
European markets are mostly higher, although London’s FTSE is off slightly ahead of the UK’s new prime minister taking office Wednesday. Home Secretary Theresa May was uncontested for the leadership following David Cameron’s post-Brexit resignation and the only other contender pulling out Monday. Opposition parties are calling for a general election but that is unlikely as there is a fixed-term parliament.
Wall Street and Toronto are expected to open higher. St Louis Fed president James Bullard is due to speak at 8.45am ET.
Citi says Brexit fears will ease, commodities set to rise
A report from Citigroup says that the post-Brexit concern will not be a long term issue for investors who will be focused on the rise of commodities.
The cyclical slump in commodity prices, seen in the second half of the year over the last 5 years, will be replaced by a stronger period for prices until the end of 2016 with 2017 set for growth.
Citi predicts a 27 per cent rise for oil in 2017; natural gas up 39 per cent; some metals to rise 10 per cent. However, Canada’s gold producers may lose out as precious metal prices decrease according to the outlook.
The election which secured power for Japan’s prime minister in the nation’s upper house has lifted stocks for a second day.
In a speech late Monday, Shinzo Abe promised “bold investment” to help boost the turbulent economy. His comments saw a weakening yen, giving a lift to exporters on the Nikkei. Elsewhere in Asia, markets rose along with Tokyo and closed broadly higher.
European markets are mostly higher, although London’s FTSE is off slightly ahead of the UK’s new prime minister taking office Wednesday. Home Secretary Theresa May was uncontested for the leadership following David Cameron’s post-Brexit resignation and the only other contender pulling out Monday. Opposition parties are calling for a general election but that is unlikely as there is a fixed-term parliament.
Wall Street and Toronto are expected to open higher. St Louis Fed president James Bullard is due to speak at 8.45am ET.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 18,226.93 (+0.44 per cent) | +2.02 per cent | +2.63 per cent |
| TSX Composite | 14,361.88 (+0.72 per cent) | +2.31 per cent | -0.34 per cent |
| Europe (at 4.30am ET) |
|||
| UK FTSE | 6,668.93 (-0.21 per cent) | +9.04 per cent | -0.07 per cent |
| German DAX | 9,884.18 (+0.52 per cent) | +0.50 per cent | -12.65 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,273.18 (+2.18 per cent) | +3.45 per cent | -20.29 per cent |
| Japan Nikkei | 16,095.65 (+2.46 per cent) | -3.05 per cent | -18.63 per cent |
| Other Data (at 4.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 46.65 (+0.86 per cent) |
45.08 (+0.71 per cent) |
1358.00 (+0.10 per cent) |
U$0.7656 |
| Aus. Dollar |
|||
| U$0.7628 | |||
Citi says Brexit fears will ease, commodities set to rise
A report from Citigroup says that the post-Brexit concern will not be a long term issue for investors who will be focused on the rise of commodities.
The cyclical slump in commodity prices, seen in the second half of the year over the last 5 years, will be replaced by a stronger period for prices until the end of 2016 with 2017 set for growth.
Citi predicts a 27 per cent rise for oil in 2017; natural gas up 39 per cent; some metals to rise 10 per cent. However, Canada’s gold producers may lose out as precious metal prices decrease according to the outlook.
