Morning Briefing: Markets mixed on data, politics

Markets mixed on data, politics

World equity markets are mixed so far Tuesday as regional data is viewed along with the unfolding political landscape.

The French election is still in focus in Europe with optimism that the EU project is still on track, despite challenges ahead.
Meanwhile, South Korea is electing a new leader and its stock market was closed for the vote.

Asian markets closed mostly lower as Australian banks considered a possible tax on the sector which could be introduced as part of the country’s federal budget. Weaker-than-expected Aussie retail sales also hit Sydney trading. Hong Kong outperformed its peers.

European markets are mostly higher with generally positive German data and regional earnings adding to sentiment following
Macron’s election, and a bounce for oil prices as expectation of an OPEC extension grows.

Wall Street and Toronto are expected to open flat. Canadian building permits data is due.
 

	Latest	1 month ago	1 year ago
North America (previous session)
US Dow Jones	21,012.28 (+0.03 per cent)	+1.72 per cent	+18.67 per cent
TSX Composite	15,652.08 (+0.45 per cent)	-0.10 per cent	+15.40 per cent
Europe (at 5.00am ET)
UK FTSE	7,330.98 (+0.41 per cent)	-0.25 per cent	+19.89 per cent
German DAX	12,750.64 (+0.44 per cent)	+4.30 per cent	+27.76 per cent
Asia (at close)
China CSI 300	3,352.53 (-0.19 per cent)	-4.69 per cent	+9.36 per cent
Japan Nikkei	19,843.00 (-0.26 per cent)	+6.31 per cent	+22.37 per cent
Other Data (at 5.00am ET)
Oil (Brent)	Oil (WTI)	Gold	Can. Dollar
49.54 (+0.41 per cent)	46.62 (+0.41 per cent)	1225.50 (-0.13 per cent)	U$0.7311
			Aus. Dollar
			U$0.7347

Commodities may not follow history says Goldman Sachs

Historically, commodity prices rise when the Fed is in a cycle of increasing interest rates but that may not be the case this time says Goldman Sachs.

In a client note Monday, the bank said that although the conditions in the US and also in China suggest that commodities will continue to gain, there are some risk this time.

The relative speed at which US shale production can add supply compared to traditional oil supplies, could weaken prices, Goldman said. It also highlights the high demand for certain commodities by China may slow.

Thirdly, the bank’s economists say that the Fed would typically be increasing rates faster than it is this time. The change of policy from historic examples of rate-rising cycles means a less certain outcome.