- Brent oil falls below $64
- Stocks mixed, weighed down by declines in banks and energy stocks
- Safe-haven assets gain traction as investors grow more cautious
Energy stocks are losing momentum after oil fell below its two-year high. Brent oil, fell 1% overnight, however is now 0.15% higher. Crude oil, the US benchmark, is 0.2% higher, trading above $57 per barrel.
The recent rally in oil was ignited by an anti-corruption purge in Saudi Arabia. The kingdom’s government sought to ease global investor’s anxieties by arresting multiple princes and business moguls on allegations of money laundering, embezzlement and stock market manipulation.
Later today, crude oil inventories will be released. Stockpiles are expected to decline less than last week, forecasted to reduce by 2.5 million barrels.
Meanwhile, demand for safe-haven assets has risen as investors grow more concerned with the economic backdrop. Gold has added 0.45%, to trade above the $1280 mark.
European equities are edging lower, weighed down by a decrease in banking shares as we veer further into third-quarter earnings.
Credit Agricole SA. displayed disappointing earnings results, adding a soar note to the European trading session.
The euro is almost touching the $1.60 mark, gaining some upward momentum. The single currency is 0.1% higher against the dollar.
Meanwhile, the pound slipped lower amid stagnant talks between the UK government and the European Union. Sterling is 0.3% weaker against the dollar and 0.4% lower against the euro.
Fresh bouts of tax reform doubts came into investor’s minds. Senate Republican leaders are considering whether to hold off on cutting taxes until next year. Policymakers are also mulling over the deductions for local and state taxes.
The hope of fiscal stimulation has taken stocks to fresh highs this year.
Investor’s focus is also set on Donald Trump’s tour of Asia, where the US president criticized the US-Japan trade relationship.
Trump has a mission to entice the world to stand up against the North Korean missile threat. The US president is expected to discuss the US-China trade relationship with Xi Jinping, China’s leader.
The dollar is flat against a basket of its peers. Japan’s yen is 0.3% stronger against the dollar, while the greenback is 0.4% stronger against the Australian dollar.
This week in markets:
- OPEC unveils its World Oil Outlook.
- Brexit talks resume.
- Earnings reports continue with Walt Disney Co., Adidas AG, and Siemens AG., Allianz SE and Zurich Insurance Group AG.
- The Reserve Bank of New Zealand announce its interest rate decision – it’s expected to keep the overnight rate unchanged, at 1.75%.