Global markets lower as oil extends fall

SEOUL, Korea, Republic Of - Global stocks were mostly lower Tuesday as oil extended losses following a 6-per cent plunge that was sparked by data showing a manufacturing slowdown in the world's two largest economies.

See Full Article

KEEPING SCORE: Europe started lower, with Britain's FTSE 100 down 1.2 per cent to 5,985.97. Germany's DAX fell 1 per cent to 9,656.78 while France's CAC 40 slipped 1.4 per cent to 4,331.20. Futures augured a weak start for Wall Street. Dow futures fell 0.7 per cent and S&P 500 futures declined 0.8 per cent.

SLOWING MANUFACTURING: The Institute for Supply Management said on Monday that U.S. factory activity shrank in January for a fourth straight month as a strong dollar and weak demand overseas pinched American manufacturers. The ISM's manufacturing index followed a survey showing a slowdown in China's manufacturing. China's official survey found that manufacturing fell to its lowest level in more than three years.

OIL SLIDE: The two reports sent the price of oil sharply lower. Benchmark U.S. oil was down 56 cents to $31.06 per barrel in electronic trading on the New York Mercantile Exchange. On Monday, the price of U.S. benchmark oil plunged $2, or 5.9 per cent, to $31.62 a barrel in New York. Brent crude was down 49 cents to $33.76 in London.

ANALYST'S TAKE: "Manufacturing is (the) leading edge of a global growth slowdown," Tim Condon, head of Asia research at ING, said in a daily report. "We think the 50 per cent crash in global oil prices in the second half of 2014 caused the manufacturing slump by crushing commodity producers' spending. However, we also think that in 2015 weaker manufacturing, especially in China, began to drive down oil prices. The negative feedback loop is causing severe strains."

ASIA'S DAY: Tokyo's Nikkei 225 finished 0.6 per cent lower at 17,750.68 and South Korea's Kospi fell 1 per cent to 1,906.60. Hong Kong's Hang Seng declined 0.8 per cent to 19,446.84. Australia's S&P/ASX 200 dropped 1 per cent to 4,993.30. Stocks in Taiwan, Singapore, Indonesia and the Philippines also were lower. But the Shanghai Composite in mainland China rose 2.3 per cent to 2,749.57.

CURRENCIES: The dollar fell to 120.63 yen from 120.95 yen on Monday. The euro strengthened to $1.0918 from $1.0900.



Advertisements

Latest Economic News

  • Online cannabis dispensaries join in on Black Friday sales

    Economic CTV News
    Online cannabis dispensaries are the latest to cash in on the holiday shopping frenzy, with some offering dramatic markdowns or novelty products as the season known for consumer spending gets underway. Several online cannabis stores are holding Black Friday sales for the first time this year in an effort to stay competitive and draw new customers in what they call an increasingly competitive market. Source
  • Why France hates Black Friday: 'I find it sad'

    Economic CTV News
    Having adopted hamburgers, Halloween and a host of English words, some in France are worried about the latest cultural import from America: the day of rampant consumerism known as Black Friday. Unheard of only a few years ago, the cut-price deals made the television news bulletins Friday as local retailers copied their American counterparts in trying to lure in shoppers ahead of the Christmas season. Source
  • Canadian operating profits top $100B amid financial sector strength

    Economic CTV News
    OTTAWA -- Statistics Canada says strong performance in the financial sector drove Canadian corporate operating profits to just over $100 billion in the third quarter, up 17.2 per cent from the same period last year. Source
  • WestJet launches new regional air service in Western Canada

    Economic CTV News
    CALGARY -- WestJet Airlines Ltd. (TSX:WJA) has introduced a new regional air service in Western Canada operating under a capacity purchase agreement with B.C.-based Pacific Coastal Airlines Ltd. WestJet Link will connect the Alberta communities of Lethbridge, Lloydminster and Medicine Hat and the B.C. Source
  • Aurora formally launches hostile takeover bid for CanniMed Therapeutics

    Economic CTV News
    TORONTO -- Aurora Cannabis Inc. formally launched its all-stock hostile takeover bid for CanniMed Therapeutics Friday, on the condition that the medical marijuana producer cancel its own planned acquisition of Newstrike Resources Ltd. The Vancouver-headquartered licensed marijuana company says in a statement it placed a newspaper ad for its offer to acquire all issued and outstanding shares for up to $24, and a takeover bid circular will be mailed to CanniMed's shareholders. Source
  • CEO Suzanne West vows to pursue greener path after oil firm splits with backers

    Economic CTV News
    CALGARY - One of the few female CEOs in the Canadian oilpatch says she has parted ways with her American financial backers and her Calgary company's oil and gas assets have been taken over by a newly-created entity. Source
  • Ontario gaming agency will expand online and mobile betting

    Economic CTV News
    TORONTO -- Think you know when U.S. President Donald Trump will be impeached? How about who the next James Bond will be? Or perhaps you have an inside track on the name of the next royal baby? Source
  • Aurora Cannabis launches hostile takeover bid for CanniMed Therapeutics

    Economic CBC News
    Aurora Cannabis Inc. formally launched its all-stock hostile takeover bid for CanniMed Therapeutics Friday, on the condition that the medical marijuana producer cancel its own planned acquisition of Newstrike Resources Ltd. The Vancouver-headquartered licensed marijuana company says in a statement it placed a newspaper ad for its offer, valued at $24 per share, and a takeover bid circular will be mailed to CanniMed's shareholders. Source
  • Aurora takeover bid 'makes no sense,' based on inflated share price: CanniMed

    Economic CBC News
    Aurora Cannabis Inc. formally launched its all-stock hostile takeover bid for CanniMed Therapeutics Friday, on the condition that the medical marijuana producer cancel its own planned acquisition of Newstrike Resources Ltd. The Vancouver-headquartered licensed marijuana company says in a statement it placed a newspaper ad for its offer, valued at $24 per share, and a takeover bid circular will be mailed to CanniMed's shareholders. Source
  • Amazon workers in Germany, Italy stage Black Friday strike

    Economic CTV News
    BERLIN -- Workers at a half dozen Amazon distribution centres in Germany and one in Italy walked off the job Friday, in a protest timed to coincide with "Black Friday" to demand better wages from the American online giant. Source