Global markets sink led by Shanghai market plunge

TOKYO - Global stock markets sank Tuesday, led by a plunge in the Shanghai index, after a renewed slump in the price of oil kept investors on edge about the world economy.

See Full Article

KEEPING SCORE: France's CAC 40 fell 1.7 per cent in early trading to 4,239.19 and Germany's DAX lost 1.4 per cent to 9,598.50. Britain's FTSE 100 slipped 1.4 per cent to 5,793.98. U.S. shares were set to drift lower, with Dow futures slipping 0.8 per cent to 15,692. S&P 500 futures fell 0.7 per cent to 1,857.70.

ASIA'S DAY: The Shanghai Composite dropped 6.4 per cent to finish at 2,749.78, the lowest since December 2014, when the index was beginning a rally that peaked last June. Japan's Nikkei 225 lost 2.4 per cent to 16,708.90. South Korea's Kospi slipped 1.2 per cent to 1,871.69. Hong Kong's Hang Seng was down 2.6 per cent at 18,831.87. Other regional markets were also mostly down.

OIL CONCERNS: Plunging oil prices have been hitting profits at energy companies and getting investors worried the fall in energy costs could add to deflationary pressures in major economies. Slower growth in China is one reason for oil prices to fall. The slide also reflects oversupply including new sources of production such as shale oil in the U.S. Oversupply is set to be compounded by the lifting of sanctions on Iran, allowing it resume oil exports.

CHINA FACTOR: In China, investors were in near-panic in the absence of a shift in government policies and economic fundamentals, according to Chen Yong, market strategist for Lianxun Securities. The approach of the Lunar New Year didn't help, as players become reluctant to invest for fear of any unexpected sharp falls in overseas markets.

THE QUOTE: "It's just another in a long series of slumps that we have seen in this market, and it's not the last we will see either because the market is still overpriced. And too many people want to get their money out. It's been a bubble since it began last summer," said Michael Every, who heads Financial Markets Research, Asia-Pacific, at Rabobank. He expects another 10 per cent drop or more in Shanghai shares before things settle down.

ENERGY: Benchmark U.S. crude was down 85 cents at $29.49 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.85, or 5.7 per cent, to $30.34 a barrel in New York on Monday. Brent crude, a benchmark for international oils, lost $1.01 to $29.49 a barrel in London. It fell $1.68, or 5.2 per cent, to $30.50 a barrel the previous day.

CURRENCIES: The dollar fell to 117.74 yen from 118.23 yen in the previous trading session. The euro inched up to $1.0870 from $1.0850.



Advertisements

Latest Economic News

  • 'We want no part of it' : U.S. airlines refuse to transport migrant kids separated from parents

    Economic CBC News
    Major U.S. airlines are telling the White House that they don't want to participate in any transportation of migrant children who have been separated from their parents at border crossings. In a statement Wednesday, American Airlines said it doesn't know whether any migrant children have been on its flights, but it doesn't want to profit from the current immigration policy of separating families. Source
  • The Mouse chases the Fox: Disney makes $71B US counteroffer for Twenty-First Century Fox

    Economic CBC News
    The mouse is chasing the fox. Disney is offering more than $71 billion US for Fox's entertainment businesses in a counterbid to Comcast's nearly $66 billion US offer . The battle for Twenty-First Century Fox reflects a new imperative among entertainment and telecommunications firms. Source
  • Canadian steel not a national security threat on its own: U.S. commerce secretary

    Economic CTV News
    OTTAWA -- The U.S. commerce secretary says Canada is not a national security threat and that a revitalized NAFTA could make the Trump administration's tariffs on steel and aluminum go away. Wilbur Ross also acknowledged Wednesday that the U.S. Source
  • PayPal blocks sales of school shooting video game

    Economic CTV News
    HARTFORD, Conn. -- The developer of a school shooting video game condemned by parents of slain children has lost the ability to sell its products online after being dumped by PayPal. Acid Software said Tuesday that purchases of "Active Shooter" were "temporarily disabled" as its representatives tried to resolve the issues with PayPal. Source
  • Aurora Cannabis to spin off U.S. holdings to publicly traded Australis Capital

    Economic CTV News
    EDMONTON -- Aurora Cannabis Inc. is planning to spin off its Australis Capital subsidiary as a separate entity that would focus primarily on investing in the U.S. cannabis and real estate sectors. The spin-off will be achieved by distributing shares and warrants of the new company -- to be listed on the Canadian Security Exchange. Source
  • Fed chair signals gradual rate hikes in tame inflation era

    Economic CTV News
    WASHINGTON -- The U.S. Federal Reserve will likely keep raising short-term interest rates at only a gradual pace, Fed chair Jerome Powell said Wednesday, partly because there are few signs, so far, that the ultra-low U.S. Source
  • Amazon, Buffett, JPMorgan pick Gawande to lead health firm

    Economic CTV News
    Amazon, JPMorgan Chase and Berkshire Hathaway have picked well-known author and Harvard professor Dr. Atul Gawande to transform the health care they give their employees. The three corporate titans said Wednesday that Gawande will lead an independent company focused on a mission they announced earlier this year: figuring out ways to improve a broken and often inefficient system for delivering care. Source
  • U.S. congressional committee hearing on current and proposed tariff actions LIVE

    Economic CBC News
    Contact CBC Audience Relations, CBC P.O. Box 500 Station A Toronto, ON Canada, M5W 1E6 Toll-free (Canada only): 1-866-306-4636 TTY/Teletype writer: 1-866-220-6045Contact Us Source
  • Employers now face a time crunch on pot policy

    Economic CTV News
    Employers across Canada are grappling with the new reality of recreational marijuana becoming legal following the passage of Bill C-45 in the Senate. The pending change will mean decades-old workplace policies on the drug will need to be adjusted, and new safety concerns considered. Source
  • Canadian pot company spins out U.S. assets into separate company to stay on right side of law

    Economic CBC News
    Canada's second largest cannabis company plans to place its U.S. assets into a new separate company that will focus on investing in the cannabis and real estate sector there. TSX-listed Aurora Cannabis said Wednesday it plans to distribute units of its subsidiary Australis Capital Inc. Source