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

  • Global trade more important than ever, Chrystia Freeland tells Toronto audience

    Economic CBC News
    Ottawa is more in favour than ever of global trade and signing free trade amendments, despite recent moves toward protectionism in other countries, International Trade Minister Chrystia Freeland told a Toronto business audience on Monday. Speaking to the Toronto Board of Trade at a luncheon, Freeland said is "so proud" to be representing Canada on the world stage, because it is "the country that is most clearly bucking the trend" toward protectionism and closed borders. Source
  • Trump not saying what he'll do about Dakota Access pipeline

    Economic CTV News
    CANNON BALL, N.D. -- Protesters who celebrated a major victory in their push to reroute the Dakota Access oil pipeline vowed to remain camped on federal land as they wait to find out whether President-elect Donald Trump might seek to overturn a decision that delayed the $3.8 billion project. Source
  • Electric vehicle charging stations coming to 25 Ontario Canadian Tire locations

    Economic CTV News
    ETOBICOKE, Ont. - Electric vehicle charging stations are being added to 25 Canadian Tire Gas+ locations across Ontario. AddEnergie Technologies says the stations, which start rolling out early next year, join the 2,500 stations along its FLO Canadian charging network. Source
  • International trade minister's announcement and news conference LIVE

    Economic CBC News
    Trevor Noah on race, comedy and politics 12:14 Daily Show host talks to CBC's Wendy Mesley about U.S. race relations, his childhood under apartheid and his controversial interview with pundit Tomi Lahren Source
  • StatCan study highlights drop in wage, job quality for young workers

    Economic CTV News
    OTTAWA - A new study from Statistics Canada says young people have seen their job quality decline over the last four decades, even as the unemployment rate has remained virtually unchanged. In a report released today, the national statistics office says fewer young Canadians, who are not full-time students, are working in full-time jobs today than in 1976, a result driven mainly by the rise of part-time work rather than increases in unemployment rates or decreases in labour force…
  • Second Cup signs $8M loan deal

    Economic CBC News
    The Second Cup Ltd. has signed a deal for a four-year, $8-million secured term loan from an affiliate of Serruya Private Equity following a review of its strategic options. The company says proceeds from the loan will be used to repay its existing $6-million credit facility and for general corporate purposes. Source
  • Amazon Go store is checkout free

    Economic CTV News
    NEW YORK -- Amazon is testing a grocery store model in Seattle that works without checkout lines. Called Amazon Go, shoppers scan their Amazon app when they enter the store, and then sensors register items that shoppers pick up and automatically charge them to the Amazon app. Source
  • Can't buy love? Drug price hikes put sex beyond reach

    Economic CTV News
    TRENTON, N.J. -- Imagine not being able to afford one of life's great pleasures -- sex. That's true for many older couples, doctors say. Soaring prices for prescription medicines for impotence and other problems have put the remedies out of reach for some. Source
  • Second Cup signs deal for $8-million loan following review of strategic options

    Economic CTV News
    MISSISSAUGA, Ont. -- The Second Cup Ltd. (TSX:SCU) has signed a deal for a four-year, $8-million secured term loan from an affiliate of Serruya Private Equity following a review of its strategic options. The company says proceeds from the loan will be used to repay its existing $6-million credit facility and for general corporate purposes. Source
  • Competition Bureau ups bid-rigging work to protect federal infrastructure cash

    Economic CTV News
    OTTAWA -- The Competition Bureau of Canada says its efforts to identify and prevent bid rigging in construction contracts this year has already turned up potential criminal activity -- just as new federal infrastructure money begins to flow. Source