Yellen's cautious tone boosts markets... Brent crude near 7-month high but supply concerns... US calls again for easier access to China...
Yellen’s cautious tone boosts markets
Fed chair Janet Yellen spoke Monday and, despite not giving a clear indication over interest rates, sounded a cautious tone on the US economy.
World markets have reacted Tuesday with sentiment boosted by Yellen’s words as analysts further shift from a June rate rise and many now thinking July may not be the year’s first hike either.
Asian markets closed mixed. The Australian central bank followed expectations by announcing a hold-steady on its interest rate and Sydney’s ASX gained. In India, its central bank also said it was leaving policy unchanged.
European indexes are also higher on Yellen and oil prices. Germany’s DAX is heading towards a 2 per cent gain.
Wall Street and Toronto are expected to open higher.
Brent crude near 7-month high but supply concerns
The international crude oil benchmark is near a 7-month high Tuesday but concerns over supplies are growing. Brent is trading at near $51 as the low dollar and supply issues support the market. US stocks are also believed to be lower again this week but there are signs that producers will begin increasing production. Baker Hughes says that US producers have increased rigs for the second time this year.
US calls again for easier access to China
A delegation of US officials has reiterated calls for China to lower the regulatory burden for foreign companies. Reuters reports that business groups are concerned that the Chinese appear to favour domestic firms and make it harder for foreign firms to operate there. Talks continued in Beijing for a second day.
Fed chair Janet Yellen spoke Monday and, despite not giving a clear indication over interest rates, sounded a cautious tone on the US economy.
World markets have reacted Tuesday with sentiment boosted by Yellen’s words as analysts further shift from a June rate rise and many now thinking July may not be the year’s first hike either.
Asian markets closed mixed. The Australian central bank followed expectations by announcing a hold-steady on its interest rate and Sydney’s ASX gained. In India, its central bank also said it was leaving policy unchanged.
European indexes are also higher on Yellen and oil prices. Germany’s DAX is heading towards a 2 per cent gain.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 17,920.33 (+0.64 per cent) | +1.01 per cent | +0.40 per cent |
| TSX Composite | 14,276.16 (+0.35 per cent) | +4.19 per cent | -4.55 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE (previous) | 6,315.90 (+0.68 per cent) | +3.10 per cent | -7.18 per cent |
| German DAX | 10,277.47 (+1.55 per cent) | +4.13 per cent | -8.21 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,177.05 (-0.05 per cent) | +1.49 per cent | -39.26 per cent |
| Japan Nikkei | 16,675.45 (+0.58 per cent) | +3.53 per cent | -18.50 per cent |
| Other Data (at 5.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 50.87 (+0.63 per cent) |
49.96 (+0.52 per cent) |
1243.50 (-0.31 per cent) |
U$0.7833 |
| Aus. Dollar |
|||
| U$0.7449 | |||
Brent crude near 7-month high but supply concerns
The international crude oil benchmark is near a 7-month high Tuesday but concerns over supplies are growing. Brent is trading at near $51 as the low dollar and supply issues support the market. US stocks are also believed to be lower again this week but there are signs that producers will begin increasing production. Baker Hughes says that US producers have increased rigs for the second time this year.
US calls again for easier access to China
A delegation of US officials has reiterated calls for China to lower the regulatory burden for foreign companies. Reuters reports that business groups are concerned that the Chinese appear to favour domestic firms and make it harder for foreign firms to operate there. Talks continued in Beijing for a second day.
