• Oil prices drop again
  • Asian shares add gains
  • Abu Dhabi’s index added 1.1 percent on Wednesday
  • Dollar retreats, gold prices unchanged

Oil prices

Oil prices dropped again in early trading on Thursday on worries over rising supply and weak demand.

Front-month Brent crude oil futures were trading at $65.90 per barrel at 0254 GMT, down 22 cents, or 0.3 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $55.95, down 30 cents, or 0.5 percent.

“Asian refiners and consumers we speak with are mentioning initial concerns of slowing demand,” Mike Corley, president of Mercatus Energy Advisors, told Reuters.

“Producers...have more barrels than they can sell at the moment,” said Mercatus Energy Advisors’ Corley.

Global markets

Asian shares added gains in early trading on Thursday, pushed higher by Chinese shares.

According to a Reuters report, United States government sources told Reuters on Wednesday that China had sent a response to U.S. demands for trade reform but gave no further details, raising hopes the two sides could resume negotiations to end their trade war.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent.

“While it’s difficult to pin-point a specific event for the risk-off move, recent themes appear to be keeping markets cautious include oil’s recent plummet, Apple’s fall, U.S. political gridlock, China’s slowing growth, tightening liquidity, a hawkish Fed, earnings peak, Italian jitters, and Brexit uncertainty,” wrote economists at ANZ, according to a Reuters report.

Middle East markets

Abu Dhabi’s index gained 1.1 percent on Wednesday as shares in First Abu Dhabi Bank rose 2.8 percent.

Dubai’s index ended the day 0.03 percent higher. Emirates NBD rose 2.8 percent and Aramex added 1.7 percent, while Dubai Investments dropped 3.8 percent.

Saudi Arabia’s index dropped 1.2 percent, weighed down by a plunge in oil prices. All 14 petrochemical stocks declined, with the biggest, Saudi Basic Industries, losing 1.8 percent.

Qatar’s index dropped 1.1 percent. Qatar Fuel Co dropped its 10 percent daily limit, while Mesaieed Petrochemical was down 1.5 percent.

Egypt’s blue-chip index EGX30 dropped 0.4 percent as EFG Hermes Holding fell 2.5 percent and Pioneers Holding tumbled 7.5 percent.

Kuwait’s index edged up 0.1 percent, Bahrain’s index rose 0.4 percent and Oman’s index edged down 0.2 percent.

Currencies

The dollar retreated early on Thursday, as the euro and the pound rallied.

The dollar index, which measures the greenback against a basket of six major cuurencies was last trading at 96.97, off a 16-month high hit on Monday.

Precious metals

Gold prices were mainly unchanged on Thursday after the previous session’s surge.

Spot gold was little changed at $1,210.65 per ounce at 0055 GMT.

U.S. gold futures were flat 0.1 percent at $1,203 per ounce.

(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)

(gerard.aoun@refinitiv.com)


Gain a deeper understanding of financial markets through Thomson Reuters Eikon.

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2018