- This is the script of CNBC's news report for China's CCTV on December 10, Thursday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Markets could again be buffeted by year-end crosscurrents and positioning ahead of the Fed, but oil may have the final say Thursday.
All financial markets were focused on crude, which was higher early before ending at a new six-year low.
Since Friday, when OPEC chose to maintain market-based pricing, oil is down more than 11 percent.
"Bonds are moving on the risk on, risk off sentiment, which is coming from oil through stocks," said Ian Lyngen, senior currency trader at CRT Capital.
Brown Brothers Harriman's chief foreign exchange strategist, Marc Chandler, said oil was unusually influential in all markets, including currencies, but the tight correlation between all markets and oil should be short-lived.
t's gone through $40 so convincingly that a lot of people are talking about $25," he said.
"This is really a dollar move rather than a euro move, a sterling move, a yen move. I think it's position squaring," said Chandler. "They're long dollar and are getting out of dollar positions."
The slump in oil prices to levels not seen since the global financial crisis has fanned expectations of deflation, hammered economies of producers and flattened share prices of once high-flying energy companies.
But according to one analyst, lower oil prices could actually help some emerging market economies and refiners by lifting disposable incomes and improving margins.
Major producers of refined fuels in Asia include South Korea, Singapore, Japan and Taiwan that rely on crude oil imports to supply the sector.
"Regional demand for oil products at the higher-end of the barrel, notably gasoline and naphtha, remains strong, providing opportunities for refiners to capitalize on higher margin products," said BMI's Lee.
Even as demand for certain refined fuels falters domestically and in certain major export markets, notably China, low import costs will help to provide some support to refiners, he added.
Supported by strong demand for gasoline and aviation fuel, China's November crude oil imports rose 7.6 percent from the same month a year ago, data showed on Tuesday, For the first 11 months, China's crude oil imports rose
8.7 percent to 302.3 million tonnes, or 6.61 million barrels a day.
"Cheaper feedstock costs will support refining margins, while lower import costs will encourage greater consumer spending, driving economic growth in the emerging economies," said Peter Lee, Oil & Gas Analyst at BMI Research on Tuesday.
Low oil prices has also spurred stockpiling by China this year as it builds its strategic petroleum reserve.
Asia's emerging economics like India, Pakistan and the Philippines, where consumer spending is a key driver of growth, will also see some upside.
"Cheaper oil will lead to greater consumer spending and an acceleration of industrialization, underpinning our bullish growth outlook for these economies over the coming years," said BMI's Lee.
Economies that will be affected are the Asian crude exporters, such as Malaysia, Indonesia, Vietnam, Timor-Leste and Brunei, where oil export revenues constitute a large part of government incomes.
The detrimental impact of low oil prices will be the most pronounced in Timor-Leste and Brunei, where oil exports account for about 73.0% and 96.0% of annual government revenue, respectively, he added.
Despite the recent bout of bad news from Malaysia, including a slump in its currency, massive losses at its state investment fund and a corruption scandal involving the prime minister, the country is not as susceptible to oil shocks.
"Lower oil prices will be a steady source of cost savings for many businesses across Malaysia, including the transport industry, chemical manufacturers and the computing industry, which is heavily dependent on electricity. Meanwhile, non-oil related exporters will face a double benefit of a more competitive currency and weaker oil prices," said Lee.
CNBC's Qian Chen, reporting from Singapore.
some of these selling up to a hundred million dollars worth of cars at this auction on thursday, and one of the top trophies is that ferrari, it's the
1956 290mm raced by the great Juan Fangio, that car could sell between 28 and 32 million, now, 00:16 if it sells for the top of that range, that would be the second most expensive car ever sold at auction, and after that, 38 million dollar ferrari sold at pebble beach last year. now a lot of amazing cars here to be sold, and the holy grail of aston martin's will go on sale this thursday, this is the 1962 db4gt zagato, 00:38 and it could sell for between 15 and 17 million dollars, that would make it not only the most expensive aston martin, but the most expensive british car ever sold. now a lot of new collectors coming into this market, and with the young new collectors it's really all about racing history.
we're seeing new clients coming into the market, we're seeing a younger generation of collectors emerging, and those are the type of trends that help build the hobby.
ON CAM 01:06
now you've looked about the hobby and looked at these new collectors, when you talk about racing history, nothing gets better than this 1955 silver gullwing that was raised by the great stirling moss. this could sell for between 5 and 7 million making it the most expensive gullwing ever sold. and gullwing prices have just rocketed in recent years, now along more pop culture entertainment lines, janis joplin, remember she asked the lord for that mercedes, well, she got a porsche instead. 01:34 and that porsche is going to come up for sale on thursday, it's a 1963 356c, it could sell for between four to six hundred thousand dollars. now one of her roadies(?) painted a mural that he called a history of the universe, on that car, and she drove it everywhere, all around california, 01:51 her friends drove it, so that is a well-used with a great piece of music history, now, for the young and emerging ferrari collectors in your family, there's this, the toy testarossa,it's got leather seats, a gas engine, perfect christmas present could sell for between 50 and 75 thousand dollars. guys, back over to you.