Global Markets Mixed as Central Banks Tackle Inflation

Global markets were mixed yesterday as investors approached the end of a turbulent week marked by central banks' efforts to quell inflation. North American markets closed higher, with Wall Street futures edging up after major indices closed up the day before. TSX futures were in positive territory.

The pan-European STOXX 600 was down 0.33% in morning trading, while Britain's FTSE 100 slid 0.53%, Germany's DAX gave back 0.59%, and France's CAC 40 eased 0.6%. In Asia, Japan's Nikkei closed 1.38% higher after the central bank boosted interest rates to their highest level in 31 years.

Oil prices extended losses for a third straight session as easing concerns over Saudi supply disruptions outweighed anxiety about a widening of conflict across the Middle East. Brent crude futures fell 1.8% to US$103.00 a barrel, while West Texas Intermediate (WTI) futures dropped 1.5% to US$100.40.

PVM Oil Associates analyst Tamas Varga said immediate concerns over supply tightness have been eased by a combination of Saudi Arabia loading more crude via Oman, a build in oil product inventories in the U.S., Singapore and Europe, plus increased fuel exports from China. He added that 'while continuous pre-weekend profit-taking cannot be ruled out, the current fundamental outlook would not justify a prolonged fall below $100 (a barrel) basis Brent.'