| Market Headlines
US
- US equities finished lower Tuesday, retreating from record highs, as weak oil prices weighed on energy stocks. The S&P 500 declined 0.7% as the energy sector fell 1.3%.
- Oil prices fell close to 2% amid concerns that a supply glut will persist. The decline means that oil prices have now entered into bear market territory (a decline of 20% from its previous high).
- Markets also digested comments from House Speaker Paul Ryan on tax reform. He said the government is cutting back on regulatory red tape and that changes to the tax code must be permanent. Treasury Secretary Steven Mnuncin also said on a televised interview that “massive tax reform” will be passed this year.
- The dollar continued to trade higher against most major currencies, and was further boosted by a decline in oil-sensitive currencies such as the Russian rouble, the Brazilian real, and the Norwegian krone.
Europe
- Oil prices also dragged European equities lower. The Euro Stoxx 50 pared early session gains to close 0.5% lower, with energy stocks contributing the most losses.
- Sterling traded lower against both the euro and dollar following a speech from BoE governor Mark Carney. Carney spoke of “mixed signals on consumer spending” and “still subdued domestic inflationary pressures”, thus dampening expectations of a rate hike in the near future.
Asia
- Asian shares retreated overnight and the yen strengthened as oil prices continued to trend lower.
- Chinese shares were firmer, rising 0.2%, following the announcement that mainland China A shares will be included in MSCI’s emerging markets index for the first time following three previous failed attempts.
Source : Goodbody Asset Management, Ballsbridge Park, Ballsbridge, Dublin 4. +353 1 641 9470
Wednesday 21st June 2017 |
