Morning Briefing: Markets mixed following UK terror attack

Markets mixed following UK terror attack

World markets are mixed so far Tuesday following a terrorist attack at an Ariana Grande concert in Manchester, UK which killed 22 people including some children.

Asian equity indexes closed mostly lower as news of the attack unfolded and commodities were also impacted with gold slipping before recovering later in the session.

Oil is lower following comments by Donald Trump regarding the sale of half of the US oil reserves. That possibility has offset high optimism of an extension of the OPEC output caps with Iraq signalling it will agree.

European markets are resilient and trending higher. Mixed economic data from the Eurozone and regional earnings are in focus. The UK pound has slipped following the Manchester tragedy and campaigning for the country’s general election has been suspended.

Wall Street and Toronto are expected to open higher. Canadian wholesale sales data is due. US PMI and home sales data is due.
 

	Latest	1 month ago	1 year ago
North America (previous session)
US Dow Jones	20,894.83 (+0.43 per cent)	+1.69 per cent	+19.45 per cent
TSX Composite	15,458.46 (+1.19 per cent)	-1.00 per cent	+11.06 per cent
Europe (at 5.00am ET)
UK FTSE	7,505.14 (+0.12 per cent)	+5.49 per cent	+22.30 per cent
German DAX	12,652.62 (+0.26 per cent)	+5.01 per cent	+28.55 per cent
Asia (at close)
China CSI 300	3,424.19 (+0.38 per cent)	-1.23 per cent	+10.91 per cent
Japan Nikkei	19,613.28 (-0.33 per cent)	+5.33 per cent	+17.76 per cent
Other Data (at 5.00am ET)
Oil (Brent)	Oil (WTI)	Gold	Can. Dollar
53.37 (-0.93 per cent)	50.71 (-0.82 per cent)	1260.50 (+0.07 per cent)	U$0.7419
			Aus. Dollar
			U$0.7503

Fintech market gains increase risk, opportunity

The rapid increase in Fintech platforms presents both risk and opportunity for the stability of the global financial sector according to a report from the Committee on the Global Financial System and Financial Stability Board.

"A bigger share of FinTech credit in the financial system could have both financial stability benefits and risks," says CGFS chairman William C Dudley (President, Federal Reserve Bank of New York).

Potential benefits include increased access to alternative funding sources in the economy and efficiency pressures on incumbent banks. At the same time, risks may arise, including weaker lending standards and more procyclical credit provision.