Crude oil prices have been volatile, as the market reacted to developments around efforts by major producers to reach an agreement on the contentious issue of output cuts at their meeting on Wednesday. The dollar stood at 111.96 yen, off its overnight low of 111.35 but well below an 8-month high of 113.90 touched on Friday. Gold traded 1190.80. It has lost $100 since the election as investors moved from risk off to risk on.
The Wall Street Journal, quoting one analyst, noted: “The market is going to go in a risk-off mood in a couple of days” as investor fears about the Italian referendum coming up later in the week grow. Overnight in the U.S., the S&P 500 closed down 0.5%, while the Dow Jones Industrial Average fell 0.3%, led by a selloff in bank stocks amid worries over Italian banks and the spillover effects on the banking sector from the referendum.
Italians are to vote on constitutional changes designed to scale back the country’s legislature, speed up lawmaking and simplify bureaucracy. Investors worry that a “no” vote and the resultant political uncertainty could derail efforts to shore up the country’s fragile banking system. Earlier in the year, Mr. Renzi suggested he would resign in the event of a “no” vote.
The Wall Street Journal, quoting one analyst, noted: “The market is going to go in a risk-off mood in a couple of days” as investor fears about the Italian referendum coming up later in the week grow. Overnight in the U.S., the S&P 500 closed down 0.5%, while the Dow Jones Industrial Average fell 0.3%, led by a selloff in bank stocks amid worries over Italian banks and the spillover effects on the banking sector from the referendum.
Italians are to vote on constitutional changes designed to scale back the country’s legislature, speed up lawmaking and simplify bureaucracy. Investors worry that a “no” vote and the resultant political uncertainty could derail efforts to shore up the country’s fragile banking system. Earlier in the year, Mr. Renzi suggested he would resign in the event of a “no” vote.
Reuters reported Japanese markets slipped on Tuesday in a mostly lower Asian trading session, despite the release of government data hinting at a stabilization in domestic demand.
The country's seasonally adjusted unemployment rate was steady in October at 3 percent, the same level as August.
Household spending in Japan fell 0.4 percent on-year in October, but it fell at a slower pace than the median estimate for a 0.6 percent decline, according to Reuters. Separately, retail sales slipped 0.1 percent on-year for the same month, falling less than the Reuters median estimate for a 1.2 percent annual drop.
The rest of Asian markets were mostly flat, taking cues from the U.S. where a post-election rally appeared to stumble. Traders also looked ahead to key global events set to take place this week, including a meeting on Wednesday between the world's largest oil producers and the release of the U.S. nonfarm payroll report on Friday.
In South Korea, the Kospi was flat at 1,979.03, with shares of electronics giant Samsung up 0.12 percent. The smartphone maker said in a statement on Tuesday it was reviewing if it should transition to a holding company structure.
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