Global sell-off as Fed fears grow... IEA forecasts $50 oil could last through 2020... Policymakers have limited ability to deal with shocks says Moody’s...
Global sell-off as Fed fears grow
Concern over an interest rate rise by the Fed next month is keeping global markets subdued currently and added fears of a global slowdown, prompted by yesterday’s OECD report has sparked a sell-off in many markets so far Tuesday.
Asian markets were broadly lower especially following official CPI data which showed that China’s inflation was softer in October, dipping to 1.3 per cent from a year earlier following a 1.6 per cent rise in September and below the 1.5 per cent analysts were expecting. A current account surplus for the 15th month and some positive earnings helped Tokyo’s Nikkei outperform the rest of the region to close higher.
European markets are also lower amid a sell-off following the lead from Asia and North American markets.
Toronto and Wall Street are expected to open lower.
IEA forecasts $50 oil could last through 2020
The International Energy Agency reported Tuesday that the refusal of OPEC countries to cut oil output could mean lower oil prices through to the end of the decade. The IEA concludes that if OPEC is prepared to continue to lose revenue in favour of higher market share then prices could remain around $50 a barrel until 2020 but a balancing of the market could see a price of around $80. OPEC members are due to meet on Dec. 4 but indications are that there will be no real change in policy.
Policymakers have limited ability to deal with shocks says Moody’s
Moody’s says that low interest rates and stimulus measures already undertaken will limit the range of policymakers in the event of negative shocks. The ratings agency warned Tuesday that growth that was expected in China and other emerging markets has not materialised and that nations do not have significant buffers to weather any storms.
Concern over an interest rate rise by the Fed next month is keeping global markets subdued currently and added fears of a global slowdown, prompted by yesterday’s OECD report has sparked a sell-off in many markets so far Tuesday.
Asian markets were broadly lower especially following official CPI data which showed that China’s inflation was softer in October, dipping to 1.3 per cent from a year earlier following a 1.6 per cent rise in September and below the 1.5 per cent analysts were expecting. A current account surplus for the 15th month and some positive earnings helped Tokyo’s Nikkei outperform the rest of the region to close higher.
European markets are also lower amid a sell-off following the lead from Asia and North American markets.
Toronto and Wall Street are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,730.48 (-1.00 per cent) | +3.78 per cent | +0.66 per cent |
| TSX Composite | 13,482.62 (-0.52 per cent) | -3.45 per cent | -5.34 per cent |
| Europe (at 6.10am ET) |
|||
| UK FTSE | 6,257.90 (-0.59 per cent) | -2.47 per cent | -3.16 per cent |
| German DAX | 10,735.91 (-0.74 per cent) | +6.33 per cent | +14.80 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,833.24 (-0.19 per cent) | +14.76 per cent | +49.40 per cent |
| Japan Nikkei | 19,671.26 (+0.15 per cent) | +6.68 per cent | +17.23 per cent |
| Other Data (at 6.15am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 47.14 (-0.11 per cent) |
43.97 (+0.23 per cent) |
1092.50 (+0.40 per cent) |
U$0.7538 |
| Aus. Dollar |
|||
| U$0.7062 | |||
IEA forecasts $50 oil could last through 2020
The International Energy Agency reported Tuesday that the refusal of OPEC countries to cut oil output could mean lower oil prices through to the end of the decade. The IEA concludes that if OPEC is prepared to continue to lose revenue in favour of higher market share then prices could remain around $50 a barrel until 2020 but a balancing of the market could see a price of around $80. OPEC members are due to meet on Dec. 4 but indications are that there will be no real change in policy.
Policymakers have limited ability to deal with shocks says Moody’s
Moody’s says that low interest rates and stimulus measures already undertaken will limit the range of policymakers in the event of negative shocks. The ratings agency warned Tuesday that growth that was expected in China and other emerging markets has not materialised and that nations do not have significant buffers to weather any storms.
