Global stocks pulled down by weaker Chinese economy

BEIJING - Global stocks sagged Wednesday after the IMF's lower growth forecast added to anxiety over a weaker Chinese economy.

See Full Article

KEEPING SCORE: In early trading, Germany's DAX tumbled 2.4 per cent to 9,436.57 and France's CAC-40 shed 2.2 per cent to 4,176.45. Britain's FTSE 100 sank 2 per cent to 5,762.07. Wall Street looked set for losses. Futures for the Dow Jones industrial average were down 1.9 per cent at 15,617.00 and S&P 500 futures lost 1.8 per cent to 1,838.60.

IMF OUTLOOK: The International Monetary Fund cut its forecast for this year's global economic growth to 3.4 per cent from its October outlook of 3.6 per cent. The IMF downgraded the outlook for developing economies to 4.3 per cent growth from a forecast of 4.5 per cent in October. Earlier this month, the World Bank cut its global growth forecast to 2.9 per cent from last June's 3.3 per cent outlook.

CHINESE SLOWDOWN: The world's second-largest economy cooled further in the latest quarter, dragging 2015's growth to a 25-year low of 6.9 per cent. The slowdown has dampened demand for goods from oil to iron to heavy machinery. Anxiety over China's outlook has contributed to oil prices falling to 12-year lows.

THE QUOTE: "The stabilisation we saw yesterday now appears to have only been a pause" in volatility for financial markets, said IG analyst Angus Nicholson in a report. "China's somewhat mystifying 3 per cent rally in the Shanghai Composite was quickly lost at the open, killing sentiment across the whole Asian region."

ASIA'S DAY: Tokyo's Nikkei 225 fell 3.7 per cent to 16,416.19 and Hong Kong's Hang Seng retreated 3.8 per cent to 18,886.30. The Shanghai Composite Index lost 1 per cent to 2,976.69 and South Korea's Kospi was off 2.3 per cent at 1,845.45. Australia's ASX/S&P 200 shed 1.3 per cent to 4,841.50. India's Sensex was down 1.9 per cent at 24,005.56. Markets in Southeast Asia also retreated.

WALL STREET: U.S. stocks struggled through turbulent trading Tuesday and eked out small gains, led by utility and consumer stocks. The Dow rose as much as 183 points in the first minutes of trading Tuesday. Gains faded in the afternoon before a late spurt of buying. The Dow ended up 27.94 points, or 0.2 per cent, at 16,016.02. The S&P 500 rose one point to 1,881.33. The Nasdaq composite index fell 11.47 points, or 0.3 per cent, to 4,476.95. Major indexes had plunged Friday, and the Dow and S&P 500 are coming off their worst opening weeks of a year in history.

ENERGY: Benchmark U.S. crude for March delivery was down 88 cents at $28.70 per barrel in electronic trading on the New York Mercantile Exchange. The February contract, which expires Wednesday, fell 96 cents to $28.46 on Tuesday. Brent crude, a benchmark for international oils, lost 60 cents to $28.16 in London. The contract rose 21 cents on Tuesday to close at $28.76.

CURRENCIES: The dollar declined to 116.20 yen from 117.46 in the previous trading session. The euro rose to $1.0964 from $1.0922.



Advertisements

Latest Economic News

  • Who killed Sears question sparks bitter blame game among top players

    Economic CBC News
    Sears Canada may be over, but the mudslinging over who brought it down has just begun. Majority shareholder Eddie Lampert fired the latest shot in a blog on Sunday. If Sears Canada had adopted a less risky reinvention strategy, it could have avoided shutting its doors, claimed Lampert, who is also CEO of Sears Holdings Corp. Source
  • Unifor head Jerry Dias 'glad to be in the middle of it' on NAFTA talks

    Economic CTV News
    OTTAWA - Just hours before Bombardier Inc. was to unveil a dramatic plan to escape its latest crisis, Jerry Dias was summoned to Montreal to meet with Alain Bellemare, the beleaguered firm's chief executive. There, the head of Canada's largest private-sector union was told that after months of searching for partners to help finance its sleek new C Series jet, Bombardier would be teaming up with European manufacturer Airbus, which would take on much of the responsibility for building and selling…
  • Retails jobs at risk from self-service technology, experts say

    Economic CTV News
    VANCOUVER - Retailers are racing to adopt new technologies, like the self-scanner Walmart has rolled out in 22 Canadian stores, to stay competitive in a challenging industry. But experts say the trend toward automation threatens more jobs in a sector that is already slashing head counts. Source
  • Asian stock markets rise after Wall Street loss

    Economic CTV News
    BEIJING - Asian stock markets edged up Tuesday after Wall Street slid overnight as investors sought new drivers for trading activity. KEEPING SCORE: Tokyo's Nikkei 225 rose 0.2 per cent to 21,733.10 points and Sydney's S&P-ASX 200 gained 0.1 per cent to 5,901.10. Source
  • Quebec-based Avior inks multi-year contract with Boeing 737 Max project

    Economic CTV News
    LAVAL, Que. -- Canadian aerospace manufacturer Avior Integrated Products says it has entered into a multi-year contract with Boeing's 737 Max airplane program. The company is a full-service supplier of lightweight structural assemblies and will be involved with access door assembly on the project by the U.S. Source
  • Liberal government to boost Canada child benefit payments: sources

    Economic CBC News
    The federal government will announce plans to boost payments made to families under the Canada child benefit program on Tuesday, CBC News has learned. Multiple sources, speaking to CBC News and Radio-Canada on the condition of anonymity, said the government will foreshadow the increase in the fall economic update, which will be tabled tomorrow, and provide more details later this week. Source
  • Company that runs B.C. casino accused of illegal activity says it follows rules

    Economic CTV News
    RICHMOND, B.C. -- The head of a company that runs a British Columbia casino alleged to have taken in millions that could be proceeds of crime says procedures to ensure compliance with regulations are strictly followed. Source
  • Stelco looking to raise $200M with IPO

    Economic Toronto Sun
    Stelco Holdings Inc. is looking to raise $200 million in its initial public offering, according to documents filed with securities regulators. The steelmaker is expecting to price its shares between $16 and $18 per share. If an over-allotment option is exercised in full, the offering will increase to $230 million. Source
  • Man with allergy dies from walnut shells used at construction site

    Economic CTV News
    EDMONTON -- The family of an Edmonton man with a nut allergy says he died after visiting a work site where walnut shells were used to blast paint off walls. Justin Mathews, who was 33, went into anaphylactic shock at the city's Rossdale fire station on Oct. Source
  • Marijuana company Aphria met with TSX about guidance regarding U.S. business

    Economic CBC News
    Marijuana producer Aphria Inc. says it met with the Toronto Stock Exchange last week to discuss the exchange's recent guidance that pot firms with U.S. exposure could face delisting. Aphria chief executive Vic Neufeld says the company reiterated its commitment to work collaboratively with the TSX as it continues to monitor developments in this sector. Source