Today’s News
Oil prices remained range-bound in early Asian trading on Tuesday as investors awaited direction from the U.S. Federal Reserve’s upcoming interest rate decision and expressed concerns about demand from China.
Image Source: NOC
U.S. West Texas Intermediate (WTI) crude was down by 6 cents at USD 70.65 per barrel, while Brent crude futures dipped 1 cent to USD 73.90 per barrel.
“Prices were weighed on by profit-taking following last week’s 6% rally and disappointing Chinese economic data,” said Tony Sycamore, an IG market analyst.
On Monday, oil prices pulled back from multi-week highs following weaker-than-expected consumer spending data from China, despite stronger industrial output. Investors are adopting a wait-and-see stance ahead of the U.S. Federal Reserve’s final policy meeting of the year, scheduled for Tuesday and Wednesday.
The Fed is widely expected to cut interest rates by a quarter-point, and market participants are keen to learn about future rate-cut expectations for 2025 and 2026, especially in light of potential higher inflation under the incoming Trump administration.
Lower interest rates typically support economic growth and boost demand for oil.
Other News
TSX Dips After Chrystia Freeland’s Resignation
Canada’s TSX closed down 0.4% after Finance Minister Chrystia Freeland’s sudden resignation, while investors focused on the upcoming Fed rate decision. Oil prices fell due to weaker Chinese consumer spending.
Bank of Canada Warns of Increased Economic Shocks
Bank of Canada Governor Tiff Macklem warned that the world is increasingly vulnerable to economic shocks, citing factors like deglobalization, demographic changes, and rising trade protectionism.
China Sees Record USD 45.7B Capital Outflows
China’s capital markets experienced a record USD 45.7 billion outflow in November, as foreign investments in stocks and bonds declined. Official data showed a significant monthly deficit.
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