Oil weighs heavily on markets... G20 won’t solve much say experts... Loonie to recover says CIBC...
Oil weighs heavily on markets
World equity markets fell Wednesday as concern over falling oil prices and weak growth hit sentiment.
Comments by the Saudi oil minister that reinforced calls for a freeze on production but ruled out cuts pushed oil prices lower and Iran’s oil minister has exacerbated the situation by calling the Saudi-led freeze a “joke”.
Asian markets closed lower, led by Sydney which was down more than 2 per cent. Shanghai was the outlier with slim gains.
In Europe, oil is also the main concern although growth and the potential for the UK to leave the EU are all weighing on investor sentiment.
Wall Street and Toronto are expected to open lower. Markets will be watching the EIA Petroleum Status Report due at 10.30am ET.
G20 won’t solve much say experts
Officials from the G20 nations meet in China this week but experts are not expecting anything that will solve the world’s economic ills. Reuters quotes an un-named Japanese official: "Financial markets need something refreshing, but we are not expecting a 'Plaza'-like policy accord. There's no magic bullet." Meanwhile an Italian official says the picture is “les rosy” than it was a year ago. There are calls for greater stimulus from governments and central banks in order to boost global growth.
Loonie to recover says CIBC
CIBC World Markets says there could be another slight dip for the Canadian dollar but the outlook is for it to increase. The current level of around 72 US cents to the loonie may dip to 70 cents in the second quarter but CIBC believes later in the year it will have recovered to almost 75 cents by this time next year.
World equity markets fell Wednesday as concern over falling oil prices and weak growth hit sentiment.
Comments by the Saudi oil minister that reinforced calls for a freeze on production but ruled out cuts pushed oil prices lower and Iran’s oil minister has exacerbated the situation by calling the Saudi-led freeze a “joke”.
Asian markets closed lower, led by Sydney which was down more than 2 per cent. Shanghai was the outlier with slim gains.
In Europe, oil is also the main concern although growth and the potential for the UK to leave the EU are all weighing on investor sentiment.
Wall Street and Toronto are expected to open lower. Markets will be watching the EIA Petroleum Status Report due at 10.30am ET.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 16,431.78 (-1.14 per cent) | +2.10 per cent | -9.76 per cent |
| TSX Composite | 12,763.44 (-0.64 per cent) | +3.02 per cent | -15.84 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 5,887.73 (-1.25 per cent) | -0.21 per cent | -15.28 per cent |
| German DAX | 9,239.03 (-1.89 per cent) | -5.39 per cent | -17.55 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,109.55 (+0.65 per cent) | -0.13 per cent | -11.72 per cent |
| Japan Nikkei | 15,915.79 (-0.85 per cent) | -6.15 per cent | -14.45 per cent |
| Other Data (at 6.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 32.65 (-1.86 per cent) |
30.94 (-2.92 per cent) |
1234.50 (+0.97 per cent) |
U$0.7237 |
| Aus. Dollar |
|||
| U$0.7170 | |||
G20 won’t solve much say experts
Officials from the G20 nations meet in China this week but experts are not expecting anything that will solve the world’s economic ills. Reuters quotes an un-named Japanese official: "Financial markets need something refreshing, but we are not expecting a 'Plaza'-like policy accord. There's no magic bullet." Meanwhile an Italian official says the picture is “les rosy” than it was a year ago. There are calls for greater stimulus from governments and central banks in order to boost global growth.
Loonie to recover says CIBC
CIBC World Markets says there could be another slight dip for the Canadian dollar but the outlook is for it to increase. The current level of around 72 US cents to the loonie may dip to 70 cents in the second quarter but CIBC believes later in the year it will have recovered to almost 75 cents by this time next year.
