China tanks but oil rallies: What you need to know before markets open – FINANCIAL
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China tanks but oil rallies: What you need to know before markets open

North American markets look set to shake off a major tumble in Chinese stocks earlier this morning as hopes of an OPEC deal rise.

North American markets look set for a greater open today as oil prices recover and in front of the start of the Federal Reserve’s policy meeting and Apple’s earnings report later within the day.

Crude prices were hovering slightly above $30 a barrel on hopes that OPEC and non-OPEC producers would accept tackle a massive supply glut. Shares of Chevron were up 0.9 per cent premarket.Chinese shares tumbled, dragging down global stocks, following a steep fall in rail freight in the world’s second largest economy raised concerns about a China-led global slowdown.The government Reserve’s Federal Open Market Committee begins a two-day meeting on rates of interest later on Tuesday, its first since raising rates in December, with a statement due on Wednesday. As the Fed is not expected to move ahead rates now, rattled investors will parse the commentary to gauge the impact of the recent global turmoil on the central bank’s outlook. According to exchanging short-term interest-rate futures, investors expect the Fed to boost rates just once this season, and never until June, instead of four expected earlier.Corporate earnings reports are likely to offer little cheer, with S&P 500 companies likely to report a 4.5 per cent drop in quarterly profit.Moody’s has downgraded its ratings for that Bank of Nova Scotia (TSX:BNS) by one notch, noting Scotiabank’s increased reliance upon generating profits from credit card and auto loans.Apple is scheduled to report quarterly results following the close, out of the box AT&T. The iPhone maker’s comments on its China business will be in sharp focus, amid broader concerns of the slowdown in demand.Dow component 3M was up 2.7 percent at $141.23 in front of its results before the bell.AIG was up 1.6 percent at $56.23 after the insurer said hello would spin off its mortgage insurance unit and sell its broker-dealer network.

? Thomson Reuters 2016

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