DAILY MARKET OVERVIEW
Top 3 Pre-Market Headlines for Aug 30, 2017
Moody's says G20 GDP growth to exceed three percent, warns of geopolitical risks
Euro zone sentiment jumps more than expected in August
Crude oil prices slip, gasoline futures trade higher
||Moody’s says G20 GDP growth to exceed three percent, warns of geopolitical risks
Moody’s Investors Service kept its forecast for G20 economic growth at just over 3 percent for this year and next, but warned of geopolitical risks, U.S. protectionism and spillovers from global monetary tightening and China’s deleveraging measures.
The ratings agency said surprisingly strong data in the first half of the year prompted it to raise 2017 growth forecasts for China to 6.8 percent from 6.6 percent, for South Korea to 2.8 percent from 2.5 percent, and for Japan to 1.5 percent from 1.1 percent.
It also expected the Euro Zone to accelerate in the rest of the year as suggested by robust sentiment indicators and revised upwards its forecasts for Germany, France and Italy.
The agency cut its forecast for the United States, however, to 2.2 percent in 2017 and 2.3 percent in 2018 from a previous 2.4 percent and 2.5 percent, respectively, citing its weaker-than-expected first half performance and expectations of more modest fiscal stimulus than previously assumed.
||Euro zone sentiment jumps more than expected in August
Euro zone economic sentiment jumped more than expected in August thanks to more optimism in the industry and service sectors and among consumers, monthly survey data from the European Commission showed on Wednesday.
The Commission’s economic sentiment index for the 19 countries sharing the euro rose to 111.9 in August from an upwardly revised 111.3 in July, beating expectations of economists polled by Reuters of a 111.3 reading.
The Commission’s business climate index, which points to the phase of the business cycle, also recovered from a dip in July, rising to 1.09 in August from a revised 1.04.
||Crude oil prices slip, gasoline futures trade higher
Oil prices slid lower on Wednesday as ongoing disruptions from Tropical Storm Harvey kept refineries from buying crude, weighing on demand but prompting fears over fuel shortages.
U.S. crude oil was down 27 cents or 0.6% at $46.16 a barrel by 04:30 AM ET (08:30 GMT), not far from Monday’s one-month trough of $45.77.
Global benchmark Brent futures were at $51.35 as barrel, off 31 cents or 0.56%.
Some refiners in Corpus Christi that shut down ahead of the storm were looking to restart, but heavy rains were expected to last through Wednesday, adding to catastrophic flooding.
The National Weather Service said the storm has set a rainfall record for tropical cyclones in Texas.
But even refineries that are able to restart may experience difficulties getting enough oil supplies.
Ships carrying oil are still unable to enter Texas ports, while producers in south Texas who shut down operations are only starting to ramp up and some pipelines that carry supplies to refineries are still shut.