IEA lowers its oil demand forecast, global stocks are mixed, Valeant is reportedly under criminal investigation, and the Reserve Bank of New Zealand reduces rates to an all-time low. Here are four things to know in the market today, August 11.
1. IEA Lowers Oil Demand Forecast
The IEA (International Energy Agency) reduced its global oil demand forecast on Thursday amidst a downbeat economic outlook. The agency warned that the continued oversupply will limit gains on oil prices.
In its monthly oil market report, the organization said it forecasts that global oil demand will rise by 1.2 million barrels per day next year. The figure represents a decline of 100,000 barrels per day compared to last month’s forecast.
U.S. crude oil was down 20 cents to $41.51 per barrel. Brent fell 13 cents to $43.92 per barrel.
Oil futures tumbled on Wednesday after supply data showed a surprise increase in U.S. supplies and Saudi Arabia’s record-high production level weighed on sentiment.
2. Global Stocks Are Mixed
Global stocks were mixed on Thursday. U.S. stock index futures were marginally higher as investors turned their focus to a new batch of corporate earnings.
U.K. and European stocks were mixed during morning trade, with gas and oil shares facing increased pressure.
Asian shares closed lower after a dip in oil prices.
3. Valeant Shares Tumble on Reports of Criminal Investigation
Shares for Valeant Pharmaceuticals (VRX) tumbled 10% on news that U.S. prosecutors have opened an investigation against the company on allegations that it hid its relationship with a specialty pharmacy from insurers.
Lawyers are trying to determine whether hiding this relationship may have amounted to the defrauding of insurers.
4. Reserve Bank of New Zealand Reduces Rates
The Reserve Bank of New Zealand (RBNZ) reduced interest rates to an all-time low of 2% on Thursday, and hinted that further cuts may be needed in the future.
The kiwi soared to its highest level in over a year despite the rate cut.
