World Stocks Diverge On Oil Market Focus


World stocks diverge on oil market focus

LONDON, (UrduPoint / Pakistan Point News - 11th Augst,2016) - European and Asian stock markets traded mixed Thursday as investors tracked falling oil prices. Tokyo was shut owing to a public holiday in Japan, while Shanghaiclosed lower and Hong Kong rose.

In Europe, London fell as eurozone indices headed higher. Around 0945 GMT, London's benchmark FTSE 100 index was down 0.3 percent. Frankfurt's DAX 30 gained 0.6 percent and the Paris CAC 40 climbed 0.7 percent, compared with the close on Wednesday.

"The FTSE 100 underperformed equity benchmarks in Germany and France as post-Brexit concerns highlighted risks for the domestic economy," said Jasper Lawler, analyst at traders CMC Markets. Citing a weaker outlook for the world economy following Britain's vote to leave the European Union, the International Energy Agency on Thursday cut its oil demand growth forecast for 2017.

That weighed on oil prices with benchmark contracts falling in London and New York.

But the IEA added that oil oversupply, which has been weighing on the crude price in recent months, will disappear in the latter part of 2016. In foreign exchange meanwhile, Dollar gains were capped as traders await clearer signals on the timing of a possible US interest rate hike, with expectations that the Fed will move cautiously. Investors were awaiting also the release of more Chinese economic data -- including industrial output and retail sales -- due this week. Figures released Tuesday showed China's producer prices fell in July at their slowest rate in nearly two years, fuelling hopes the end of a painful slowdown could be in sight for the world's second largest economy. Shanghai's main stocks index fell 0.5 percent on Thursday, dragged down by falls to share prices in small companies.

Elsewhere, South Korea opted to keep its key interest rate unchanged at 1.25 percent -- but the central bank governor held out the prospect of another reduction.