Chinese stocks higher, Japan falls as impact of U.S. rate cut fades

BEIJING -- Global stocks were mostly higher Monday following Wall Street's decline as the impact of a long-awaited U.S. interest rate cut faded.

See Full Article

KEEPING SCORE: In early trading, Germany's DAX advanced 0.1 per cent to 10,619.00 and France's CAC 40 shed 0.3 per cent to 4,610.53. On Friday, the DAX lost 1.7 per cent, the CAC 40 fell 1.5 per cent and Britain's FTSE 100 was down 0.7 per cent. Wall Street looked set for gains, with the Dow Jones industrial average future up 0.3 per cent and that for the Standard & Poor's 500 index up 0.4 per cent.

ASIA'S DAY: The Shanghai Composite Index gained 1.8 per cent to 3,642.47 and Hong Kong's Hang Seng advanced 0.2 per cent to 21,791.68. Tokyo's Nikkei 225 shed 0.4 per cent to 18,916.02, while Bangkok and Singapore also declined. Seoul's Kospi advanced 0.3 per cent to 1,981.19, India's Sensex added 0.6 per cent to 25,682.87 and New Zealand also rose. Sydney's S&P/ASX 200 was unchanged at 5,109.00.

SLUMPING WALL STREET: Stocks plunged across all sectors Friday in the heaviest trading of the year as enthusiasm over a U.S. rate hike faded. Bank stocks fell the most after investors had bid them up in hopes they would become more profitable as lending rates climbed. Technology shares suffered more declines as a bad December got worse for Apple. The world's most valuable publicly traded company sank again, bringing its monthly loss to 10 per cent. The Dow Jones industrial average dropped 367.29 points, or 2.1 per cent, to 17,128.55. The S&P 500 index fell 36.34 points, or 1.8 per cent, to 2,005.55. The Nasdaq composite sank 79.47 points, or 1.6 per cent, to 4,923.08. All 10 Standard & Poor's 500 sectors fell.

ANALYST'S TAKE: "Friday's sell-off underscores the difficulty the U.S. stock market currently has in playing its traditional role as leader of world market rallies. U.S. valuations are full already. This makes the U.S. market vulnerable to risk off moves," Ric Spooner of CMC Markets said in a report. "European markets are likely to be focused on the results of the Spanish election. Early indications that Spain will be governed by an unwieldy coalition will increase the political risk to markets from this pivotal European economy."

SPANISH ELECTION: A strong showing by a pair of upstart parties in Spain's weekend election upended the traditional two-party system. The ruling Popular Party received the most votes but fell far short of a parliamentary majority and is at risk of being booted from power. If forced out of government, Prime Minister Mariano Rajoy and his Popular Party would become the third European victim this year of a voter backlash against austerity following elections in Greece and Portugal seen as rebellions against unpopular tax hikes and spending cuts.

ENERGY: Benchmark U.S. crude fell 45 cents to $35.61 per barrel in electronic trading on the U.S. Mercantile Exchange. The contract shed 19 cents on Friday to close at $36.06. Brent crude, used to price international oils, lost 73 cents to $36.15 per barrel in London. It declined 18 cents in the previous session to $36.88.

CURRENCY: The dollar rose to 121.33 yen from Friday's 121.15 yen. The euro edged up to $1.0869 from $1.0867.



Advertisements

Latest Economic News

  • Ikea readies its first East Coast store, touted as Canada's most sustainable

    Economic CTV News
    HALIFAX - Ikea is getting ready to officially open its first Atlantic Canadian store this week as thousands from across the region are expected to descend upon the popular Swedish furniture chain's new Halifax-area location. Source
  • Striking GM CAMI workers awaiting response to weekend contract proposal

    Economic CTV News
    TORONTO -- The union representing 2,500 striking workers at GM Canada's CAMI assembly plant in Ingersoll, Ont., says the company has yet to respond to a comprehensive proposal put forward on the weekend. Unifor spokesman Mike Van Boekel says he expects it will take General Motors of Canada, which owns the plant, about a day to analyze the costs of the proposal. Source
  • Trudeau urges Canadian companies to seek fortune in China's $5 trillion market

    Economic CTV News
    TORONTO -- Prime Minister Justin Trudeau is urging Canadian small- and medium-sized businesses to look beyond Canada's borders and explore the US$5 trillion retail opportunity in China. Trudeau is speaking at a Toronto conference today hosted by Chinese e-Commerce giant Alibaba, with politicians from all three levels of government in attendance. Source
  • American business group says loss of free trade with U.S. would be a big concern

    Economic CTV News
    OTTAWA - A new report says potential changes to NAFTA and a loss of free trade with the United States represent the biggest concerns for a number of big American firms operating in this country. Source
  • French truck drivers block roads to protest labour changes

    Economic CTV News
    PARIS -- French truck drivers staged road blockages near fuel depots across the country Monday to protest against President Emmanuel Macron's changes to labour laws. Two major unions, CGT and FO, called a nationwide protest action because they fear the new rules Macron formally signed last week will lead to a deterioration in working conditions and ease the firing of workers. Source
  • Alibaba launching payment processing service AliPay in Canada

    Economic CBC News
    E-commerce giant Alibaba.com is launching its mobile payment service AliPay in Canada. The service allows Alibaba customers to use AliPay to easily pay Canadian merchants who sign up for the program. Alibaba is by far the most popular online sales website in China, and AliPay allows Chinese customers to buy products from abroad without any difficulties with currency conversion. Source
  • New Uber CEO apologies for company's past mistakes, vows change

    Economic CBC News
    The new CEO of Uber offered contrition for past mistakes on Monday, just days after London's transport authority said it would scrap the company's operating license. Dara Khosrowshahi issued a letter to London's Evening Standard newspaper acknowledging the company "has got things wrong along the way" as it expanded. Source
  • Uber CEO apologizes to London users for company's mistakes

    Economic CTV News
    LONDON -- The new CEO of Uber offered contrition for past mistakes on Monday, just days after London's transport authority said it would scrap the company's operating license. Dara Khosrowshahi issued a letter to London's Evening Standard newspaper acknowledging that the company "has got things wrong along the way" as it expanded. Source
  • Cenovus reaches agreement to sell Suffield assets for $512M

    Economic CTV News
    CALGARY - Cenovus Energy Inc. (TSX:CVE) says it has reached an agreement to sell its Suffield crude oil and natural gas operations in southern Alberta to International Petroleum Corporation for $512 million in cash. A release from the Calgary-based oilsands company says the sale, which includes Cenovus' properties on Canadian Forces Base Suffield and the adjacent Alderson property, is expected to close in the fourth quarter, subject to closing conditions. Source
  • NAFTA talks becoming 'a little more heated,' says Canada's chief negotiator

    Economic CBC News
    U.S. trade negotiators will only partially unveil new text on modifying a key chapter on investment under NAFTA, two well-placed sources said on Sunday, underlying the cautious pace of talks that are supposed to wrap up by the end of the year. Source