OPEC members are planning to hold an informal meeting next month, markets are higher, gold slumps, and China’s trade data disappoints. Here are four things to know in the market today, August 8.
1. OPEC Members Plan Informal Meeting
After oil prices fell into a bear market last week, OPEC members called for an informal meeting in Algiers next month, according to the group’s president.
Oil prices rallied on the news, as investors speculate that that OPEC members will come to an agreement to freeze output. While oil was higher, concerns over the supply glut limited gains.
According to sources close to the matter, several members of OPEC are hoping to revive the idea of setting limits on oil production to stabilize the market.
Alexander Novak, Russian Energy Minister, said he sees no grounds for talks on freezing output, but is open to negotiating.
U.S. crude futures rose 1.36% to $42.37 in early morning trade, while Brent oil climbed 1.15% to $44.78.
2. Gold Slumps on Renewed Speculation of Rate Hikes
Gold prices tumbled on Monday to a one-week low on renewed speculation that the U.S. Federal Reserve will raise interest rates before the end of the year.
The yellow metal was down 0.62%, trading at $1,336.10 on the New York Mercantile Exchange.
Friday’s positive job report reignited expectations of a rate increase by the Fed before the end of the year. A stronger dollar weighs on gold’s appeal as an alternative asset.
3. Global Markets Rise
European stocks were higher on Monday following the positive job report out of the U.S., but weak data out of China limited the gains.
Asian shares also saw positive gains, feeding off the rally in the U.S. at the end of last week, despite mixed data out of Japan and China.
4. China’s Trade Data Disappoints
Imports and exports out of China were lower than expected in July, signaling weakness in global demand.
Trade balance for July came in at a surplus of $52.31 billion, higher than the expected $47.6 billion. But exports fell 4.4% and imports plunged 12.5%.
