Oil prices rise on supply disruptions, Goldman Sachs... Growth for commodities "encouraging" but could turn...
Oil prices rise on supply disruptions, Goldman Sachs
Oil prices are up almost 2 per cent Monday as disruption to supplies in Nigeria and Venezuela impacts the market. Meanwhile, Goldman Sachs says that the supply glut has ended after 2 years and storage has entered a deficit "much earlier than we expected."
Global equity markets are mixed though as Chinese data over the weekend pointed to more weakness for the world’s second largest economy. Investment, retail and factory orders were all lower in April than was expected, according to the country’s National Bureau of Statistics.
Despite the Chinese data - and the Bank of Japan reporting larger-than-expected decline in producer prices - Asian markets closed mostly higher.
European investors are more cautious so far with the Chinese data outweighing the better oil prices. Germany’s market is closed for a public holiday along with Austria and Switzerland.
Wall Street and Toronto are expected to open mixed.
Growth for commodities “encouraging” but could turn
Commodity prices may be stronger right now but that doesn’t mean there isn’t more pain ahead. That’s the message from the CEO of London-based miner Lonmin, Ben Magara. He told CNBC that although the gains are “encouraging” and have helped market sentiment, there is always the potential for a further downturn. Magara noted that the cost cutting has been needed, as it’s something the company can control amid volatile external impacts.
Oil prices are up almost 2 per cent Monday as disruption to supplies in Nigeria and Venezuela impacts the market. Meanwhile, Goldman Sachs says that the supply glut has ended after 2 years and storage has entered a deficit "much earlier than we expected."
Global equity markets are mixed though as Chinese data over the weekend pointed to more weakness for the world’s second largest economy. Investment, retail and factory orders were all lower in April than was expected, according to the country’s National Bureau of Statistics.
Despite the Chinese data - and the Bank of Japan reporting larger-than-expected decline in producer prices - Asian markets closed mostly higher.
European investors are more cautious so far with the Chinese data outweighing the better oil prices. Germany’s market is closed for a public holiday along with Austria and Switzerland.
Wall Street and Toronto are expected to open mixed.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,535.32 (-1.04 per cent) | -2.02 per cent | -4.03 per cent |
| TSX Composite | 13,748.58 (-0.28 per cent) | +0.82 per cent | -9.00 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 6,119.77 (-0.31 per cent) | -3.53 per cent | -12.08 per cent |
| German DAX | 9,952.90 (+0.92 per cent) | -0.98 per cent | -13.05 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,095.31 (+0.66 per cent) | -5.41 per cent | -32.97 per cent |
| Japan Nikkei | 16,466.40 (+0.33 per cent) | +2.27 per cent | -16.55 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 48.69 (+1.80 per cent) |
47.03 (+1.77 per cent) |
1283.30 (+0.83 per cent) |
U$0.7738 |
| Aus. Dollar |
|||
| U$0.7286 | |||
Growth for commodities “encouraging” but could turn
Commodity prices may be stronger right now but that doesn’t mean there isn’t more pain ahead. That’s the message from the CEO of London-based miner Lonmin, Ben Magara. He told CNBC that although the gains are “encouraging” and have helped market sentiment, there is always the potential for a further downturn. Magara noted that the cost cutting has been needed, as it’s something the company can control amid volatile external impacts.
