An oil tanker delivers a consignment of Iranian oil to an offshore pumping station (Photographer: Luke MacGregor/Bloomberg)

Tuesday Morning Briefing: Global Setup 

Oil extended its biggest loss in three weeks even as a Bloomberg survey showed that U.S. stockpiles fell by 1 million barrels last week. West Texas Intermediate crude futures is trading just above the $47 mark at 7 am.

The weakness in crude prices weighed on energy shares worldwide. On Monday, the S&P 500 Index closed little changed, while Asian markets opened the Tuesday session on a muted note.

In the past week, speculation about whether the U.S. Federal Reserve will increase interest rates this year, picked up after Vice Chair Stanley Fischer’s hawkish commentary. The odds of a rate hike in 2016 are now above the 50 percent level.

The dollar halted its two-day advance as traders awaited clarity on the Fed’s trajectory. Fed Chair Janet Yellen is scheduled to speak at the annual Jackson Hole Symposium on Friday.

The SGX Nifty is trading largely unchanged around the 8,620 mark, indicating a quiet start for Indian equities. Investors will react to June quarter earnings from companies like Aurobindo Pharma Ltd. and Tata Power Company Ltd.

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