Global stock markets weaker as fall in oil prices hits energy companies

SEOUL, Korea, Republic Of -- Global stock markets dropped sharply Friday as a further falls in the the price of oil weighed on investor sentiment, eroding gains sparked the day before by the U.S.

See Full Article

Federal Reserve's first rate hike in nearly a decade.

KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was down 0.6 per cent at 6,064 while France's CAC 40 fell 1.2 per cent to 4,620. Germany's DAX was 1.3 per cent lower at 10,618. Wall Street was likely to extend losses from the previous session. Dow futures and the broader S&P 500 futures were down 0.4 per cent.

ENERGY SLUMP: The price of oil hovered below $35 a barrel Friday following a big fall earlier this week after a surprise build in U.S. crude inventories. Energy and mining stocks have been pummeled this year as the sluggish global economy reduces demand even as supplies become more abundant.

OIL PRICES: Benchmark U.S. crude was down 49 cents at $34.46 a barrel in electronic trading on the New York Mercantile Exchange. It closed 1.6 per cent lower, or 57 cents, at $34.95 a barrel in New York on Thursday. It had not closed beneath $35 per barrel since Feb. 18, 2009 and traded above $60 a barrel as recently as June. Brent crude, a benchmark for international oils, was 24 cents lower at $37.82 a barrel in London.

ANALYST TAKE: "The Fed decision has clearly had no effect on the ongoing world of pain that oil prices find themselves in," said Angus Nicholson, a market analyst at IG in Melbourne, Australia. "A wave of defaults and bankruptcies in the energy sector still looks likely to come, and these concerns are certainly weighing on markets."

ASIA'S DAY: Japan's Nikkei 225 sank 1.9 per cent to 18,986.80 and South Korea's Kospi slipped 0.1 per cent to 1,975.32. Hong Kong's Hang Seng finished 0.5 per cent lower at 21,755.56 while Australia's S&P/ASX 200 added 0.1 per cent to 5,106.70. Stock markets in Southeast Asia were mixed.

JAPAN STIMULUS: The Nikkei index slumped even after the Bank of Japan said it will expand its asset purchase program to encourage more corporate investment. The central bank is pumping tens of trillions of dollar a year into the economy but has yet to make much progress.

CURRENCIES: The euro was flat at $1.0840 while the dollar was down 1.1 per cent at 121.18 yen as traders responded to the limited additional stimulus from the Bank of Japan.



Advertisements

Latest Economic News

  • San Francisco brewery ordered to stop making beer with CBD

    Economic CTV News
    SAN FRANCISCO -- U.S. officials have ordered a San Francisco brewery to stop producing beer containing cannabidiol, the hemp-derived extract known as CBD. The U.S. Alcohol and Tobacco Tax and Trade Bureau is allowing Black Hammer Brewing to sell the rest of the CBD beer it already brewed, including one called Toke Back Mountain. Source
  • Canadian auto sector observers doubt U.S. will carry through on tariff threat

    Economic CTV News
    Canadian auto industry observers are reacting with shock and disbelief to news that U.S. President Donald Trump has ordered an investigation that could result in tariffs of up to 25 per cent on auto sector imports into the United States. Source
  • Trudeau says Trump's threat of auto tariffs would hit U.S. just as hard

    Economic CTV News
    Prime Minister Justin Trudeau said he plans to tell U.S. President Donald Trump that his threat to slap tariffs of up to 25 per cent on vehicle imports would have an "incredibly negative effect" on the American economy. Source
  • Disputed Keystone XL pipeline backed by Trump is focus of court hearing

    Economic CBC News
    Trump administration attorneys were due in a Montana courtroom Thursday to defend the disputed Keystone XL oil sands pipeline against environmental groups and Native American groups that want to derail the project. The 1,800-kilometre line proposed by TransCanada Corporation was rejected in 2015 by former President Barack Obama because of its potential to exacerbate climate change. Source
  • Trump administration defends Keystone XL pipeline in court

    Economic CBC News
    Trump administration attorneys were due in a Montana courtroom Thursday to defend the disputed Keystone XL oil sands pipeline against environmental groups and Native American groups that want to derail the project. The 1,800-kilometre line proposed by TransCanada Corporation was rejected in 2015 by former President Barack Obama because of its potential to exacerbate climate change. Source
  • Facebook won't pay compensation for Cambridge Analytica case

    Economic CTV News
    BRUSSELS -- Facebook says it will not compensate users in the scandal over the misuse of their personal data by political consultancy Cambridge Analytica. The company made the statement Thursday in a list of written replies to questions by European Union lawmakers. Source
  • Canada still wants to work with China despite blocked Aecon takeover: Bains

    Economic CBC News
    Canada is still open to working with China in the future, despite killing the massive takeover of Canadian construction company Aecon Group Inc. by Chinese interests, says Innovation Minister Navdeep Bains. "I'm confident that we'll continue to work together. Source
  • McDonald's not ready to let go of plastic straws

    Economic CBC News
    McDonald's isn't ready to stop offering plastic straws, despite environmental concerns. A shareholder proposal to pressure the world's biggest hamburger chain on the matter was voted down at the company's annual meeting Thursday. The proposal by activist group SumOfUs asked for a report about the "business risks" of using plastic straws at the chain's 37,000 locations globally. Source
  • McDonald's not ready to let go of plastic straws in U.S.

    Economic CTV News
    NEW YORK -- McDonald's isn't ready to stop offering plastic straws, despite environmental concerns. A shareholder proposal to pressure the world's biggest hamburger chain on the matter was voted down at the company's annual meeting Thursday. Source
  • Trump administration explores tariffs on autos, auto parts

    Economic CTV News
    WASHINGTON -- The Trump administration launched an investigation into whether tariffs are needed on the imports of automobiles into the United States, moving swiftly as talks over the North American Free Trade Agreement have stalled. Source