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

  • Warren Buffett's company investing in troubled Home Capital group

    Economic CTV News
    TORONTO - Home Capital Group Inc. (TSX:HCG) says American investment firm Berkshire Hathaway Inc. has agreed to indirectly acquire $400 million of its common shares in a private placement and provide a new $2 billion line of credit to its subsidiary, Home Trust Company. Source
  • Warren Buffet's company buys into troubled Home Capital Group

    Economic CBC News
    Home Capital Group Inc. says American investment firm Berkshire Hathaway Inc. has agreed to indirectly acquire $400 million of its common shares in a private placement and provide a new $2 billion line of credit to its subsidiary, Home Trust Company. Source
  • 2nd wave of softwood lumber duties sets up 'dangerous' talks for Canada

    Economic CBC News
    The other shoe is set to drop for softwood lumber producers Friday as the U.S. Commerce Department is expected to reveal preliminary anti-dumping duties on Canadian imports. Combine this with the retroactive countervailing duties announced in April, and the already-high stakes for trade negotiations between Canada and the United States may rise again. Source
  • Asian stocks rise after weak oil prices lead to declines on Wall Street

    Economic CTV News
    BEIJING - Asian financial markets were mostly higher Wednesday after a plunge in oil prices dragged down energy stocks on Wall Street. KEEPING SCORE: The Shanghai Composite Index gained 0.4 per cent to 3,170.19 and Tokyo's Nikkei 225 shed 0.1 per cent to 20,118.25. Source
  • Wealthsimple expanding service to the U.K.

    Economic CTV News
    TORONTO - Wealthsimple says it's expanding its robo-adviser service to the United Kingdom. The Toronto-based company says an invitation-only trial version of the product will be tested this summer in the U.K., followed by a public launch in September. Source
  • Standard and Poor's cuts Saskatchewan credit rating, cites low commodity prices

    Economic CTV News
    REGINA -- Weak commodity prices and higher government capital spending have prompted Standard and Poor's to downgrade Saskatchewan's credit rating. The agency says it has lowered the rating to double-A from double-A plus. Standard and Poor's says the downgrade reflects Saskatchewan's weakened budget performance and growing debt thanks to low oil, natural gas and potash prices. Source
  • Uber searches for a new CEO in wake of Kalanick's departure

    Economic CTV News
    DETROIT -- Uber seeks a strong manager who can repair a broken image, juggle multiple lawsuits and government investigations, develop and nurture a new corporate culture and lead a successful IPO. That's a lot for potential candidates to consider. Source
  • Potash Corp., Agrium to be called Nutrien once merger closes

    Economic CBC News
    Potash Corporation of Saskatchewan and Agrium Inc. of Calgary have announced a new merging company name: Nutrien. It was announced on Wednesday that once the merger transaction closes, the combined companies will adopt the new name. Source
  • Diageo to buy Clooney's tequila brand in $1 billion deal

    Economic CTV News
    NEW YORK -- Global liquor behemoth Diageo said Wednesday it will pay up to $1 billion to buy a tequila brand co-founded by movie star George Clooney. Clooney founded the Casamigos brand four years ago with partners Rande Gerber and Mike Meldma. Source
  • Amaya looking to pierce Indian market as it pursues global growth

    Economic CTV News
    MONTREAL -- Amaya has its eyes set on India as it looks to grow its online poker business. "India is quite an exciting market," CEO Rafi Ashkenazi told reporters Wednesday after the company's annual meeting where shareholders approved a name change and headquarters relocation to Toronto. Source