Significant news from Saudi Arabia and Russia this morning: the top two oil producers have agreed oil output cuts until March 2018.
The news saw crude prices rising more than 1.5% higher earlier in Asia. Brent crude climbed to $51.60 per barrel (6.55am). Surging US production from fracking has added to oil glut anxiety. Between them Saudi Arabia and Russia control 20% of global oil supplies.
Sterling this morning is at 1.29255 up 0.3% with the euro at 1.09375 against the dollar, up 0.13%.
- UK FTSE 100 7,435.39 +0.66
- Dow 20,896.61 -0.11%
- S&P 500 2,390.90 -0.15%
- Nasdaq 6,121.23 +0.09%
- DAX 30 12,770.41 +0.47%
- CAC 40 5,405.42 +0.41%
- Gold 1,230.90 +0.26%
- Oil WTI 48.61 +1.59%
Angela Merkel boosted
In Europe, Angela Merkel’s party has emerged victorious from a key election in North Rhine-Westphalia, Germany's most populous state. This win will bolster Merkel's support ahead of impending summits, likely strengthening her hand with President Trump.
Little economic news today though that changes tomorrow with new EU balance of trade figures plus US industrial production numbers.
Let’s start with a six-month update from Hanover-based travel operator TUI. There’s an underlying loss of €177.7m compared to €126m this time last year.
Overall guidance though from TUI remains unchanged with a “good” H1 overall and Summer 2017 trading in line with expectations. “We therefore reiterate our guidance of at least 10% growth in underlying EBITA in 2016/17.”
Little 'Brexit effect'