World stocks fluctuate after possibility of more rate hikes

HONG KONG - World stock markets wavered Thursday after the Federal Reserve sounded a note of caution on the world economy and its effect on U.S.

See Full Article

growth but left the door open for rate hikes.

KEEPING SCORE: European stocks dipped in early trading. France's CAC 40 was down 0.1 per cent to 4,375.03 and Germany's DAX dropped 0.3 per cent to 9,850.84. Britain's FTSE 100 edged up 0.1 per cent to 5,997.10. U.S. stocks were poised to open higher, with Dow futures rising 0.7 per cent to 15,963.00. Broader S&P 500 futures added 0.9 per cent to 1,891.90.

POLICY PACE: The Federal Reserve issued a cautious assessment of the global economy while also downgrading its view of U.S. growth, after officials from the central bank wrapped up their latest policy meeting Wednesday. The Fed's December rate hike had raised expectations of several more increases this year, with the first as early as March. That was a prospect that unsettled investors used to years of easy credit fueling a boom in stock markets. However, in their latest statement, officials suggested that if stock market turmoil and global economic weakness persist, they might slow down the pace of interest rate hikes though they gave themselves room to manoeuvr by not committing outright to a delay.

ANALYST VIEW: "The Fed dropped the 'reasonably confident' belief that inflation would return to 2 per cent, and 'monitoring global economic and financial developments' reappeared" in its statement, Angus Nicholson of IG in Melbourne said in a report. "Both of these indicate that global risks, and China in particular, are likely to put a bit of a pause on the hiking cycle in March and April."

ASIAN SCORECARD: Japan's benchmark Nikkei 225 index gave up early gains to end 0.7 per cent lower at 17,041.45. South Korea's Kospi added 0.5 per cent to 1,906.94. Hong Kong's Hang Seng zigzagged before finishing 0.8 per cent higher at 19,195.83. The Shanghai Composite Index in mainland China was fairly steady for most of the day until dropping steeply in the last hour, closing 2.9 per cent lower at 2,655.66. Australia's S&P/ASX 200 advanced 0.6 per cent to 4,976.20. Benchmarks in Taiwan, Singapore, the Philippines and Indonesia rose but Thailand fell.

ENERGY: Benchmark U.S. crude dipped 2 cents to $32.27 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 85 cents, or 2.7 per cent, to close at $32.30 a barrel on Wednesday in New York. Brent crude, the benchmark for international oils, added 5 cents to $33.97 a barrel in London.

CURRENCIES: The euro slipped to $1.0877 from $1.0905. The dollar rose to 118.88 yen from 118.46 yen.



Advertisements

Latest Economic News

  • Trans Mountain IPO to proceed despite B.C. Green-NDP deal, Kinder Morgan says

    Economic CTV News
    CALGARY -- Kinder Morgan says it expects to proceed Tuesday with its initial public offering for the Trans Mountain expansion, just as the anti-pipeline Greens and NDP in B.C. announced they have come to an agreement that could cast the project's future into doubt. Source
  • Trans Mountain IPO to proceed despite B.C. Green-NDP deal

    Economic CBC News
    Kinder Morgan says it expects to proceed Tuesday with its initial public offering for the Trans Mountain expansion, just as the anti-pipeline Greens and NDP in B.C. announced they have come to an agreement that could cast the project's future into doubt. Source
  • Health Canada cancels recall of Ardene children's jewelry

    Economic CBC News
    In an unprecedented move, Health Canada has cancelled its recall of children's jewelry sold by Canadian retailer Ardene after follow-up tests found the pieces don't actually contain excessive amounts of lead. It's the first time that a recall notice for a consumer product has been removed since the Consumer Product Safety Act came into force in 2011. Source
  • Oilpatch recovery to boost Alberta, Saskatchewan growth, says Conference Board

    Economic CTV News
    CALGARY -- The Conference Board of Canada says a slow recovery in the oil and gas sector will allow Alberta and Saskatchewan to emerge from recession and lead the provinces in economic growth this year. Source
  • Mortgage broker's late sponsorship bet pays off as Takuma Sato ends up winning Indy 500

    Economic CBC News
    When Takuma Sato took home the checkered flag at the Indy 500 on Sunday, the Japanese race car driver wasn't the only big winner. One of the main sponsors of his car, Indiana-based lender Ruoff Home Mortgage, only decided to put financial support behind Sato's Andretti Racing Team early last week. Source
  • Boeing says trade complaint against Bombardier designed to prevent larger CSeries

    Economic CTV News
    MONTREAL -- Boeing says its trade complaint against Bombardier is designed to prevent the Montreal-based rival from using subsidies to produce a larger version of the CSeries plane that would directly compete with its own flagship narrowbody 737 aircraft. Source
  • Asian shares muted as investors await raft of economic data

    Economic CTV News
    TORONTO -- Canada's main stock index was little changed in late-morning trading as U.S. stock markets took the day off for the Memorial Day holiday. The S&P/TSX composite index was up 1.59 points to 15,418.52, after 90 minutes of trading. Source
  • TSX flat as U.S. markets take day off for holiday; loonie up

    Economic CTV News
    TORONTO -- Canada's main stock index was little changed in late-morning trading as U.S. stock markets took the day off for the Memorial Day holiday. The S&P/TSX composite index was up 1.59 points to 15,418.52, after 90 minutes of trading. Source
  • World shares muted as investors await raft of economic data

    Economic CTV News
    HONG KONG -- World stock markets were listless Monday as investors look to a raft of economic data this week and as holidays in several key markets crimped trading volume. KEEPING SCORE: In Europe, France's CAC 40 dipped 0.1 per cent to close at 5,332.47, while Germany's DAX edged up 0.2 per cent to 12,628.95. Source
  • Toronto stock index makes small gain, led by bank and industrial stocks

    Economic CTV News
    TORONTO -- Canada's main stock index barely advanced Monday amid a quiet trading session while U.S. markets took the day off for Memorial Day. In Toronto, the S&P/TSX composite index inched up 4.98 points to 15,421.91 as bank and industrial stocks made gains. Source