Markets consider US jobs data, ECB meeting... Oil gains but headwinds persist... BIS warns that negative rates may be damaging...
Markets consider US jobs data, ECB meeting
World stock markets are mixed Monday as investors consider the impact of the stronger-than-expected US jobs data Friday and whether it will mean a Fed interest rate rise.
Also in focus is this week’s meeting of the European Central Bank and a new growth forecast from China’s ruling party calling for growth of between 6.5 and 7 per cent, CPI gains of 3 per cent and a 3 per cent of GDP budget deficit.
Asian markets closed mixed with Shanghai and Sydney gaining while Hong Kong and Tokyo closed lower.
In Europe, major indexes are also lower so far.
Wall Street and Toronto are expected to open lower.
Oil gains but headwinds persist
There has been a gain in sentiment and oil prices overnight but analysts warn that the gains will not continue. International benchmark Brent is above $39 while West Texas crude is above $36 this morning. Julius Baer commodities research chief Norbert Ruecker told Reuters that the gains do not point to a long-term recovery in oil prices. He said that sentiment is higher, lifting prices in the short-term, but pointed to the supply glut and other “fundamentals” which still threaten stability in the market.
BIS warns that negative rates may be damaging
The Bank for International Settlements reported Sunday that negative interest rates could be damaging. The organization, which comprises 60 global banks, says that it is uncharted territory and called for more research into the effectiveness of the measure. Japan, the Eurozone and Switzerland are among the economies that have taken interest rates below zero so far.
World stock markets are mixed Monday as investors consider the impact of the stronger-than-expected US jobs data Friday and whether it will mean a Fed interest rate rise.
Also in focus is this week’s meeting of the European Central Bank and a new growth forecast from China’s ruling party calling for growth of between 6.5 and 7 per cent, CPI gains of 3 per cent and a 3 per cent of GDP budget deficit.
Asian markets closed mixed with Shanghai and Sydney gaining while Hong Kong and Tokyo closed lower.
In Europe, major indexes are also lower so far.
Wall Street and Toronto are expected to open lower.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,006.77 (+0.37 per cent) | +4.95 per cent | -4.76 per cent |
| TSX Composite | 13,212.50 (+0.68 per cent) | +3.51 per cent | -11.64 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 6,146.85 (-0.85 per cent) | +5.11 per cent | -11.07 per cent |
| German DAX | 9,722.91 (-1.03 per cent) | +4.70 per cent | -15.83 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,104.84 (+0.35 per cent) | +4.76 per cent | -10.74 per cent |
| Japan Nikkei | 16,911.32 (-0.61 per cent) | +0.55 per cent | -10.86 per cent |
| Other Data (at 6.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 39.02 (+0.77 per cent) |
36.33 (+1.14 per cent) |
1271.70 (+0.08 per cent) |
U$0.7485 |
| Aus. Dollar |
|||
| U$0.7400 | |||
Oil gains but headwinds persist
There has been a gain in sentiment and oil prices overnight but analysts warn that the gains will not continue. International benchmark Brent is above $39 while West Texas crude is above $36 this morning. Julius Baer commodities research chief Norbert Ruecker told Reuters that the gains do not point to a long-term recovery in oil prices. He said that sentiment is higher, lifting prices in the short-term, but pointed to the supply glut and other “fundamentals” which still threaten stability in the market.
BIS warns that negative rates may be damaging
The Bank for International Settlements reported Sunday that negative interest rates could be damaging. The organization, which comprises 60 global banks, says that it is uncharted territory and called for more research into the effectiveness of the measure. Japan, the Eurozone and Switzerland are among the economies that have taken interest rates below zero so far.
