Daily Market Review – September 1, 2016
Stocks and Indices
Wall Street declined on Wednesday, amid dropping oil prices and the Non-Farm Payroll report on Friday. The Dow Jones industrial average lost 53.42 points, or 0.29%, while the S&P 500 slumped 5.17 points, or 0.24%. The Nasdaq fell 9.77 points, or 0.19%.
The majority of Asian markets also declined on Thursday. The South Korean Kospi eased 1.93 points, or 0.09%, while down under, Australia’s ASX 200 fell 17.43 points, or 0.32%. In mainland China, the Shanghai composite was down 22.51 points, or 0.73%, while the Shenzhen composite was down 15.40 points, or 0.75%. Japan’s Nikkei 225 was up 39.44 points, or 0.23%, while Hong Kong’s Hang Seng index gained 185.46 points, or 0.81%.
Oil prices stopped their freefall on Thursday morning, following a statement from Saudi Arabia about OPEC’s progress regarding oil production. After falling $1.84 on Wednesday, Brent crude futures remained flat at $46.89 per barrel by 0825 GMT. U.S. West Texas Intermediate crude futures were 5 cents higher at $44.75 per barrel, after tumbling $1.65 on Wednesday.
The US dollar gained against the yen on Wednesday, as investors weighed the possibility of a possible interest rate hike. The dollar was changing hands at ¥103.42 late Wednesday, up from ¥103.03 on Tuesday. Against the euro, the greenback stumbled as the European currency rose from $1.1140 on Tuesday to $1.1156 on Wednesday. The U.S. Dollar Index, which measures the buck against six rival currencies, remained unchanged at 96.012.
Brazil’s Senate voted President Dilma Rousseff out of the job on Wednesday, following a lengthy impeachment process.The senate voted 61-20 to convict Rousseff of illegally moving funds between government budgets — an assertion that Rousseff flatly denies.
The vote marks the end of 13 years in power for Rousseff’s left-wing Worker’s Party. Center-right PMDB Party politician Michel Temer has been sworn in as President, taking over Rousseff’s term which ends on January 1st, 2019.
Despite the impeachment, a separate Senate vote failed to ban Rousseff from office for 8 years, which means that the ousted President can run in the next election. Rousseff said that she is prepared to appeal against her firing, and told her supporters: “I am certain I can say: ‘See you soon.’”
*Featured image courtesy of Filipe Frazao/Shutterstock.