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Oil still above $80 as Asia shares rally – NAN

HomeNewsOil still above $80 as Asia shares rally – NAN
23
Oct
Oil still above $80 as Asia shares rally – NAN
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Asian share markets was black on Monday as the promise of more stimulus boosted Chinese stocks for a second session and helped offset geopolitical concerns over Saudi Arabia, Italy and Brexit.

Oil prices were stable on Monday, supported by supply concerns ahead of the start of U.S. sanctions against Iran’s crude exports, but held back by rising drilling activity in the United States.

Benchmark Brent crude oil futures LCOc1 were at 80.26 dollars a barrel at 0646 GMT, up 48 cents, or 0.6 per cent, above their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at 69.60 dollars a barrel, up 48 cents, or 0.7 per cent.

China’s tax cuts next year could be worth more than one per cent of gross domestic product (GDP), a central bank adviser said in remarks published on Monday.

Policymakers might be considering another round of reductions.

The government also published a draft version of new rules for tax deductions available to individuals.

Blue chips in Shanghai jumped 4.8 per cent in the largest daily gain in three years, adding to Friday’s bounce on Beijing’s pledge of support for the economy and companies.

That helped E-Mini futures for the S&P 500 recoup all their initial losses to push 0.2 percent higher. MSCI’s broadest index of Asia-Pacific shares outside Japan turned on a dime to rise one per cent.

Japan’s Nikkei moved up 0.4 per cent, after being down more than one pe rcent earlier, while South Korean stocks were flat.

Spreadbetters tipped opening gains for European bourses.

This week is the peak period of the U.S. earnings season and companies reporting include Amazon, Alphabet, Microsoft and Caterpillar.

Helped by a strong economy and deep corporate tax cuts, S&P 500 earnings per share are expected to grow 22 per cent in the third quarter, according to I/B/E/S data from Refinitiv.

“The season on an absolute basis will likely wind up being ‘strong’ and the vast majority of companies will exceed consensus expectations,” said analysts at JPMorgan in a note.

“However, headwinds are building at the margin in the form of U.S. dollar strength, supply chain disruptions owing to all the trade uncertainty, and rising costs.

”Even the mere hint of a turn in profit fundamentals would have severe ramifications.”

The outlook for global growth in 2019 has dimmed for the first time, according to media polls of economists who cautioned that the U.S.-China trade war and tightening financial conditions would trigger the next downturn.

Saudi Arabia remained in the spotlight as Riyadh on Sunday called the killing of journalist Jamal Khashoggi a “huge and grave mistake,” but sought to shield its powerful crown prince from the widening crisis.


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