Oil prices steady after OPEC, equities higher... China's yuan is "outright negative" says Goldman Sachs...
Oil prices steady after OPEC, equities higher
Thursday’s meeting of OPEC producers did not result in an output cap but there were some positive tones, especially from Saudi Arabia which said it was not about to rapidly increase output. Oil prices have increased overnight with Brent holding above $50 Friday morning.
The new Saudi oil minister predicted that oil could return to $60. Speaking to CNN, Khalid Al Falih said the market is working in producers’ favour and $60 could be reached by the end of 2016 with higher prices in 2017.
World equity markets have been buoyed by the oil prices and are broadly positive. Asian indexes closed with gains for all the major markets.
European indexes have begun their session higher but will be waiting US non-farm payroll data, due at 8.30am ET, for a steer on the Fed’s likelihood of an interest rate rise either this month or next.
Wall Street and Toronto are expected to open higher.
China’s yuan is “outright negative” says Goldman Sachs
Goldman Sachs has warned its clients that the Chinese currency is not a safe bet right now. The yuan is “outright negative” the investment bank says with the Chinese central bank signalling weakness against the US dollar. Goldman says that the lower currency could spark panic domestically and prompt a large outflow of funds.
Thursday’s meeting of OPEC producers did not result in an output cap but there were some positive tones, especially from Saudi Arabia which said it was not about to rapidly increase output. Oil prices have increased overnight with Brent holding above $50 Friday morning.
The new Saudi oil minister predicted that oil could return to $60. Speaking to CNN, Khalid Al Falih said the market is working in producers’ favour and $60 could be reached by the end of 2016 with higher prices in 2017.
World equity markets have been buoyed by the oil prices and are broadly positive. Asian indexes closed with gains for all the major markets.
European indexes have begun their session higher but will be waiting US non-farm payroll data, due at 8.30am ET, for a steer on the Fed’s likelihood of an interest rate rise either this month or next.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,838.56 (+0.27 per cent) | +0.49 per cent | -1.32 per cent |
| TSX Composite | 14,136.99 (+0.52 per cent) | +3.13 per cent | -6.72 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE (previous) | 6,239.50 (+0.87 per cent) | -0.87 per cent | -10.23 per cent |
| German DAX | 10,248.29 (+0.39 per cent) | +3.24 per cent | -10.26 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,189.33 (+0.70 per cent) | -0.75 per cent | -37.99 per cent |
| Japan Nikkei | 16,642.23 (+0.48 per cent) | +3.06 per cent | -18.71 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 50.17 (+0.26 per cent) |
49.25 (+0.16 per cent) |
1214.10 (+0.12 per cent) |
U$0.7637 |
| Aus. Dollar |
|||
| U$0.7241 | |||
China’s yuan is “outright negative” says Goldman Sachs
Goldman Sachs has warned its clients that the Chinese currency is not a safe bet right now. The yuan is “outright negative” the investment bank says with the Chinese central bank signalling weakness against the US dollar. Goldman says that the lower currency could spark panic domestically and prompt a large outflow of funds.
