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

  • Sears Canada liquidation sales underway across the country

    Economic CTV News
    Everything must go is the mantra at Sears Canada locations across the country as the one-time mainstay of Canada’s retail landscape prepares to close its doors for good. Liquidation sales at the 64-year-old department store chain began on Thursday, following an ill-fated 18-month-long in-store revival effort that failed to gain traction with consumers. Source
  • Canadian cities in the hunt for Amazon's HQ2 — but is it worth the shot?

    Economic CBC News
    It's like a technology-themed reality TV dating show. Suitor Amazon is on the hunt for a North American city to house what it calls HQ2: a second headquarters. The ideal match will tick off most of a wide-ranging list of requirements that covers practical matters, like available buildings and green space, as well as a certain "je ne said quoi" that, for example, helps it attract tech talent. Source
  • Looking back at the Black Monday stock crash, 30 years later

    Economic CBC News
    How long can this nirvana last for investors? The stock market keeps ticking methodically higher into record territory, and the Dow Jones industrial average closed above 23,000 for the first time on Wednesday. It's been nearly 16 months since S&P 500 index funds had a pullback of even 5 per cent over the course of days or weeks, the longest such streak in two decades. Source
  • Have we seen this story before? Black Monday 30 years later

    Economic CTV News
    NEW YORK -- How long can this nirvana last for investors? The stock market keeps ticking methodically higher into record territory, and the Dow Jones industrial average closed above 23,000 for the first time on Wednesday. Source
  • Hurricanes, chilly summer hit sales at Unilever

    Economic CTV News
    THE HAGUE, Netherlands -- Unilever, the consumer products giant that owns brands including Dove, Lipton and Knorr, was buffeted by bad weather in the United States and Europe and a strong euro in the third quarter. Source
  • Cenovus selling Palliser assets in Alberta to Torxen for $1.3 billion

    Economic CTV News
    CALGARY -- Cenovus Energy Inc. (TSX:CVE) says it has agreed to sell its Palliser crude oil and natural gas assets in southeastern Alberta to Torxen Energy and Schlumberger for $1.3 billion. The cash sale is expected to close in the fourth quarter, subject to customary conditions. Source
  • If NAFTA dies, old Canada-U.S. FTA would live on, right? Not so fast, Canada

    Economic CTV News
    WASHINGTON -- It's a refrain frequently heard in Canada: That ending NAFTA wouldn't change much in economic relations with the United States, because the countries could simply pull their older agreement off the shelf, dust it off, and persist in trade without tariffs. Source
  • EDC says Canadian exports seeing big gains on strength of global economy

    Economic CTV News
    CALGARY -- Export Development Canada says exports are growing significantly as both the U.S. and the global economy continue to improve. The crown corporation said in a report out Thursday that overall exports are expected to grow eight per cent in 2017, led by "massive gains" in the commodity space, and four per cent next year. Source
  • Sears managers, execs will still pocket big cash bonuses even though retailer is closing

    Economic CBC News
    Sears Canada will pay a final $2.8 million in retention bonuses to 36 head office staff, even though the retailer's restructuring efforts failed and the company is closing its doors. Promised bonuses were only supposed to be paid in full if the company found a way to survive. Source
  • Government and businesses falling behind speed of technology: report

    Economic CTV News
    TORONTO - A new report suggests the speed of technological advances has become so rapid that it's outpacing the rate at which large Canadian businesses and government institutions can adapt, with the number of jobs threatened by automation ranging from 35 to 42 per cent. Source