4 Things to Know in Monday’s Market

Global selloff continues, Oil and metals tumble, BoE deputy governor calls it quits, and Fed Governor Brainard will give a speech. Here are four things to know in the market today, September 12.

1.     Global Selloff Continues

Friday’s selloff continued Monday morning. The Stoxx 600 Index in Europe slipped 1.7%, following the slumping trend of other Western-European markets.

The MSCI Asia Pacific Index eased 2.1% overnight. All of the industry groups on Japan’s Topix index were down.

S&P 500 futures tumbled 0.7%.

2.     Oil and Metals Tumble

Oil continued its slump on Monday, with U.S. crude for October delivery trading at $45.03 early morning. U.S. crude dropped as low as $44.85 earlier.

Oil is being pressured by OPEC, which recently changed its supply forecast. The group predicts increased output from non-OPEC producers in 2017.

Metals tumbled on Monday, with nickel being hit the hardest and falling 4.1%. Chinese iron ore plummeted to its lowest level in three months.

Gold was unchanged despite investors flocking to safe havens.

3.     Bank of England Deputy Governor Resigns

Minouche Shafik, Bank of England Deputy Governor, announced on Monday that she will step down at the end of February.

Shafik will take on the role of director of London’s School of Economics.

The deputy governor is a Monetary Policy Committee member.

4.     Fed Governor Brainard Will Give a Speech

Investors turned their focus on Monday to a speech from Federal Reserve Governor Lael Brainard, due later today in Chicago. Market players are hoping the speech will offer insight into whether the Fed plans on raising rates at its next monetary policy meeting.

Friday’s upbeat comments from Boston Fed President Eric Rosengren renewed hopes of a rate increase as early as September. Rosengren said lower rates are increasing the risk of overheating the U.S.’s economy.

Futures-implied probability of a rate increase spiked to 60% Monday morning after comments from Rosengren.

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Daniel Simmons