Global stocks pulled down by oil price drop

TOKYO - Global shares stumbled Wednesday after another steep drop in the price of oil reinforced worries about the potential impact on the world economy of job cuts and reduced investment in the energy industry.

See Full Article

KEEPING SCORE: France's CAC 40 inched down 0.2 per cent to 4,276.23 and Germany's DAX was down 0.7 per cent at 9,513.72 in early trading. Britain's FTSE 100 slipped 0.4 per cent to 5,899.64. But U.S. shares were set to recover some of the previous day's losses. Dow futures were up 0.3 per cent at 16,146. S&P 500 futures rose 0.4 per cent to 1,904.50.

ECONOMY WORRIES: Investors are worried about spillover effects from the slump in oil prices as major energy companies cut jobs and investment. Falling oil prices are also an added challenge for economies that are battling deflation at a time when both China and the U.S. are showing signs of faltering growth momentum. However, some analysts think there will be eventually be an economic boost from lower energy costs as the disposable income of consumers could be increased by several trillion dollars.

THE QUOTE: "Falling oil prices have been one of the key drivers of negative sentiment in stocks. Two days of sharply weaker oil prices have refocused share markets on the potential problems flowing from the bear market in oil," said Ric Spooner, chief analyst at CMC Markets in Sydney. "Significant cuts in capital expenditure in the energy market are taking their toll on economies," he said in a commentary. "Markets are also concerned about the potential impact on credit markets that might flow from bankruptcies in the oil sector if oil prices keep falling."

ASIA'S DAY: Japan's benchmark Nikkei 225 lost 3.2 per cent to finish at 17,191.25. South Korea's Kospi slipped 0.8 per cent to 1,890.67. Hong Kong's Hang Seng was down 2.3 per cent at 18,991.59 and China's Shanghai Composite fell 0.4 per cent to 2,739.25. Australia's S&P/ASX 200 dropped 2.3 per cent to 4,876.80. Markets also fell in Taiwan, Southeast Asia, India and New Zealand.

ENERGY: Benchmark U.S. oil was up 29 cents at $30.17 a barrel in electronic trading on the New York Mercantile Exchange after being lower during much of the Asian trading day. The futures contract slid $1.74, or 5.5 per cent, to close at $29.88 a barrel in New York on Tuesday; it fell nearly 6 per cent the day before. Brent crude, a benchmark for international oils, rose 26 cents to $32.98 a barrel in London. It lost $1.52, or 4.4 per cent, to $32.72 on Tuesday.

CURRENCIES: The dollar fell to 119.93 yen from 120.81 yen the day before. The euro edged down to $1.0919 from $1.0925.



Advertisements

Latest Economic News

  • Saudis cut tax rate for Aramco ahead of IPO

    Economic CTV News
    RIYADH, Saudi Arabia -- Saudi Arabia on Monday reduced the tax rate for Saudi Aramco as plans move forward to publicly list shares of the state-owned oil giant. The new code, rolled out by royal decree from King Salman, taxes Aramco at 50 per cent on income retroactively starting Jan. Source
  • Justices refuse to hear appeal in music copyright dispute

    Economic CTV News
    WASHINGTON -- The U.S. Supreme Court won't hear an appeal from record companies that want to pursue copyright infringement claims against music site Vimeo for hosting unauthorized recordings from the Beatles, Elvis Presley and other classic artists. Source
  • Canadian marijuana stocks ride high off legalization reports

    Economic CTV News
    TORONTO - Canadian marijuana stocks got a boost Monday following reports that the federal government will introduce a bill next month that aims to legalize pot by July 1, 2018. Shares of Canopy Growth Corp. Source
  • 94-year-old woman honoured for 44 years working at McDonald's

    Economic CTV News
    EVANSVILLE, Ind. -- A 94-year-old Indiana woman is celebrating 44 years of working at McDonald's. The Evansville Courier & Press reports friends and co-workers threw a party for Loraine Maurer, of Evansville, last week. Source
  • Samsung to sell refurbished Galaxy Note 7s after battery fire recall

    Economic CBC News
    Tech giant Samsung Electronics Co. Ltd. said on Monday it plans to sell refurbished versions of the Galaxy Note 7 smartphones that were pulled from markets due to fire-prone batteries. The Note 7s were permanently scrapped in October, roughly two months from the launch of the near-$900 US devices, as more of the phones self-combusted despite a global recall initiated in September. Source
  • Uber grounds self-driving cars after accident in Arizona

    Economic CBC News
    Ride-hailing company Uber has grounded its self-driving car pilot program after an incident in Tempe, Ariz., in which one of its vehicles was rolled on to its side after a collision that wasn't its fault. Local police say a self-driving Uber SUV was operating on its own when it was struck by another vehicle making a left turn at an intersection in Arizona. Source
  • U.S. economy expected to grow slower than Trump pledges, survey finds

    Economic CBC News
    U.S. economic growth is expected to accelerate this year and next, yet remain modest, even if President Trump's promised tax cuts and infrastructure spending are implemented, a survey found. The economy will grow a solid 2.3 per cent this year and 2.5 per cent in 2018, according to 50 economists surveyed by the National Association for Business Economics. Source
  • Retailers offered new, free online course to prevent racial profiling

    Economic CTV News
    HALIFAX -- The Nova Scotia Human Rights Commission has launched a new online course aimed at preventing racial profiling at retail outlets. The free, 20-minute education program -- described as the first of its kind in Canada -- has already attracted attention from businesses in other provinces and the United States. Source
  • N.L. cod stocks on rebound, but still at critically low levels: report

    Economic CTV News
    ST. JOHN'S, N.L. -- A new federal report says northern cod stocks off eastern Newfoundland continue to grow 25 years after a sweeping moratorium, but warns they remain in the "critical zone." The Fisheries and Oceans Canada update concludes fishing should be kept to the lowest possible levels as a precaution. Source
  • United Airlines: Customers 'welcome' to wear leggings

    Economic CTV News
    DENVER -- United Airlines says regular-paying flyers are welcome to wear leggings aboard its flights, even though two teenage girls were barred by a gate agent from boarding a flight from Denver to Minneapolis because of their attire. Source