Oil prices rallied by 2 percent on Tuesday on expectations of falling shale output and renewed hopes that OPEC will deliver on a production cut deal. Saudi Arabia’s energy minister stated that it was imperative for the Organization of the Petroleum Exporting Countries (OPEC), to activate a deal made in September to curb production while OPEC members prepare to meet later this month. News that chief executive at U.S. independent oil producer Continental Resources, Harold Hamm, could serve as energy secretary besides Donald Trump also boosted prices. In today’s energy markets, Crude Oil futures were last seen trading 2 percent higher at $44.20 while Brent futures added 1.6 percent for the day, to last trade at $45.12 as of 7:35 GMT.
European stocks are expected to open flat today as the U.S. dollar stabilized yet continued to stand near a thirteen and a half year high. Analysts anticipate President Donald Trump’s economic policies will stoke inflation and affect the Federal Reserve’s monetary policy. The Republican has said that he plans to spend on infrastructure and cut taxes to stimulate the economy; such an increased fiscal stimulus could prompt a rate hike sooner rather than later!
In today’s pre-European futures trading, Germany’s DAX and France’s CAC 40 are seen opening 0.1 percent lower while U.K.’s FTSE 100 is seen edging 0.1 percent higher. The Euro Stoxx 50 futures pointed to a flat open as of 7:40 GMT.
Asia markets headed for a lower close on Tuesday, as investors eyed the dollar’s strength amid growing expectations that the Federal Reserve will impose another rate hike in December. It is worth noting that the implied probability of a December rate hike has surged to 92 percent, while the dollar albeit stabilized it’s still holding strong to at 108.00 JPY as of 7:20 GMT. It’s also important to note that a hawkish Fed policy, is generally seen as negative for emerging markets, as it makes dollar-denominated debts more expensive.
In today’s Asian Markets Japan’s Nikkei closed flat at 17668.15, Australia’s
S&P/ASX 200 closed 0.4 percent lower at 5326.20, China A50 dipped 0.2 percent to close at 10074.05 while South Korea’s KOSPI lost 0.4 percent to close at 1967.53. Hong Kong’s Hang Seng added 0.3 percent and was last seen trading at 22288.00 while India’s Nifty 50 plunged 1.9 percent at 8143.45 as of 7:30 GMT.