Oil prices dominate markets, Fed weighed... Congress, White House agree tentative budget deal... Oil glut not expected to ease... Business confidence rises in India...
Oil prices dominate markets, Fed weighed
Oil prices are in decline again so far Tuesday and that was enough to un-nerve investors in Asia with markets closing mixed. Chinese industrial profits data for September released today improved on the August figure (down 0.1 per cent year-over-year compared to an 8.8 per cent decline) but failed to impress analysts.
The weak Chinese figures and lower oil prices have also impacted sentiment in Europe with most major indexes falling so far. Data from the UK also disappointed with growth in the third quarter down to 0.5 per cent from 0.7 per cent in Q2 and missing expectations of 0.6 per cent.
Toronto and Wall Street are expected to open lower Tuesday. The Fed begins its October monetary policy meeting with possible clues to the likelihood of a December interest rate rise. Earnings will also be in focus with Ford and T-Mobile reporting before the bell and Apple and Twitter reporting after the markets close.
Congress, White House agree tentative budget deal
The US Congress and White House seem to have agreed to a tentative deal on the country’s budget which would see debt levels rising over the next two years and avoid annual talks of a government shutdown. The Republicans will meet to discuss the proposals Tuesday and a full vote could take place in Congress as early as Wednesday.
Oil glut not expected to ease
The supply glut in oil is not expected to get any better when the US inventory data is revealed at 10.30 ET Tuesday. Despite the US cutting output to 9.1 million barrels per day from 9.6 million and some better indicators of demand, prices are still volatile. OPEC is due to meet in December but there is little expectation of any reduction in output.
Business confidence rises in India
India’s emerging economy is seeing increased sentiment. A new survey of the country’s businesses in September shows a jump in optimism following the central bank’s interest rate cut last month. CNBC says that although manufacturers and builders were more optimistic, service industry bosses are less confident.
Oil prices are in decline again so far Tuesday and that was enough to un-nerve investors in Asia with markets closing mixed. Chinese industrial profits data for September released today improved on the August figure (down 0.1 per cent year-over-year compared to an 8.8 per cent decline) but failed to impress analysts.
The weak Chinese figures and lower oil prices have also impacted sentiment in Europe with most major indexes falling so far. Data from the UK also disappointed with growth in the third quarter down to 0.5 per cent from 0.7 per cent in Q2 and missing expectations of 0.6 per cent.
Toronto and Wall Street are expected to open lower Tuesday. The Fed begins its October monetary policy meeting with possible clues to the likelihood of a December interest rate rise. Earnings will also be in focus with Ford and T-Mobile reporting before the bell and Apple and Twitter reporting after the markets close.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,623.05 (-0.13 per cent) | +8.02 per cent | +4.87 per cent |
| TSX Composite | 13,790.90 (-1.17 per cent) | +3.08 per cent | -4.69 per cent |
| Europe (at 6.10am ET) |
|||
| UK FTSE | 6,393.50 (-0.37 per cent) | +4.66 per cent | +0.47 per cent |
| German DAX | 10,789.00 (-0.11 per cent) | +11.36 per cent | +21.19 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,592.88 (+0.10 per cent) | +11.17 per cent | +51.67 per cent |
| Japan Nikkei | 18,777.04 (+0.90 per cent) | +5.01 per cent | +22.02 per cent |
| Other Data (at 6.15am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 47.26 (-0.59 per cent) |
43.55 (-0.98 per cent) |
1165.60 (-0.05 per cent) |
U$0.7580 |
| Aus. Dollar |
|||
| U$0.7242 | |||
Congress, White House agree tentative budget deal
The US Congress and White House seem to have agreed to a tentative deal on the country’s budget which would see debt levels rising over the next two years and avoid annual talks of a government shutdown. The Republicans will meet to discuss the proposals Tuesday and a full vote could take place in Congress as early as Wednesday.
Oil glut not expected to ease
The supply glut in oil is not expected to get any better when the US inventory data is revealed at 10.30 ET Tuesday. Despite the US cutting output to 9.1 million barrels per day from 9.6 million and some better indicators of demand, prices are still volatile. OPEC is due to meet in December but there is little expectation of any reduction in output.
Business confidence rises in India
India’s emerging economy is seeing increased sentiment. A new survey of the country’s businesses in September shows a jump in optimism following the central bank’s interest rate cut last month. CNBC says that although manufacturers and builders were more optimistic, service industry bosses are less confident.
