• Oil prices surge on higher expected OPEC cuts
  • Asian shares edge up on easing trade tensions
  • Saudi Arabia’s index dropped 2.2 percent on Sunday
  • Dollar retreats, gold prices steady

Oil prices

Oil prices surged in early trading on Monday on higher expected cuts from the Organization of the Petroleum Exporting Countries (OPEC), but gains were limited as market sentiment was weak on signs of slowdown in demand.

Front-month Brent crude oil futures were at $67.29 per barrel at 0259 GMT, up 53 cents, or 0.8 percent, from their last close.

United States’ West Texas Intermediate (WTI) crude futures, were up 71 cents, or 1.3 percent, at $57.17 per barrel.

“The market’s bullish radar is still waiting for OPEC+ to deliver a sizeable cut number,” Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, told Reuters.

Global markets

Asian shares edged higher on Monday as the chance of a truce in the trade war between the United States and China boosted stocks.

U.S. President Donald Trump said last week that he may not impose more tariffs on Chinese goods after Beijing sent a list of measures it was willing to take to resolve trade tensions. Later this month, Trump will meet the Chinese president on the sidelines of a G20 summit in Argentina.

But, gains were limited, as over the weekend, U.S. Vice President Mike Pence said at an APEC (Asia-Pacific Economic Cooperation) meeting in Papua New Guinea that there would be no end to U.S. tariffs on $250 billion of Chinese goods until China changed its ways.

MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.1 percent and Chinese blue chips 0.5 percent.

“The comments from Trump were seen as offering a glimmer of hope that further tariff action could be held in abeyance,” NAB’s head of FX strategy, Ray Attrill, told Reuters.

“The exchange of barbs between Pence and Chinese President Xi Jinping in PNG on the weekend continues to suggest this is unlikely.”

Middle East markets

Saudi Arabia’s index dropped 2.2 percent on Sunday, falling to a one month low, as the banking sector weighed on the index.

Al Rajhi Bank fell 2.9 percent and National Commercial Bank closed 3.5 percent down.

Qatar’s index rose 0.8 percent as Qatar Fuel added 7.6 percent, while Industries Qatar and Islamic bank Masraf Al Rayan rose 0.8 percent each.

Egypt’s index jumped 2.1 percent as Commercial International Bank rose 2.0 percent and Eastern Company jumped 5.1 percent.

Stock markets in the United Arab Emirates were closed for a religious holiday.

Bahrain, Kuwait and Oman’s indices ended the day mainly flat.

Currencies

The dollar retreated on Monday following comments from Federal Reserve officials.

Richard Clarida, the Fed’s newly appointed vice chair, cautioned on Friday over the global growth outlook.

The dollar index, which measures the greenback against a basket of six major currencies, reached 96.441, down from 97.693.

Precious metals

Gold prices steadied on a weaker dollar.

Spot gold was up about 0.1 percent at $1,222.14 per ounce at 0111 GMT.

U.S. gold futures were flat at $1,222.8 per ounce.

(Reporting by Gerard Aoun; Editing by Shane McGinley)

(gerard.aoun@refinitiv.com)


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