Asian stocks continue to fall

Asian stock markets fell for a third consecutive day Wednesday, beset by nerves about shaky global growth, falling oil prices and possible capital shortfalls at major European banks.

See Full Article

KEEPING SCORE: Japan's Nikkei 225 slid 3.8 per cent to 15,476.17 and is down about 12 per cent in the past month. Australia's S&P/ASX 200 shed 1.3 per cent to 4,771.70. Stock benchmarks also fell in Southeast Asia, India and New Zealand. Markets are closed in China, Taiwan, Hong Kong and South Korea for Lunar New Year holidays. Hong Kong and Korea reopen on Thursday and China and Taiwan resume trading on Monday.

BANK DOUBTS: Investors are questioning whether European banks such as Deutsche Bank have sufficient capital after a slump in its share price and a record annual loss. Despite assurances from the German bank, some analysts expect it will need to issue new shares to raise billions of dollars, which is likely to further depress its share price. Banks also face economic headwinds that could slow lending and hurt profits. Some are also exposed to the slump in oil prices via their loans to energy companies. The nerves in Europe have spread to banks worldwide. In Asia, Mizuho Financial was down 3.5 per cent in Tokyo and ANZ fell 1.9 per cent in Sydney.

THE QUOTE: "The central bank life support trade of the past eight years has now created this coma-like scenario where markets cannot return to normal trading," said Evan Lucas, market strategist at IG in Melbourne, Australia. "The artificial support from central banks is at a crossroads. Central bank intervention will no longer create the holding pattern of the past year. Markets now believe banks are out of ammunition," he said in a market commentary.

WALL STREET: U.S. stocks extended a losing streak Tuesday, closing slightly lower after spending most of the day wavering between gains and losses. The Dow Jones industrial average fell 12.67 points, or 0.1 per cent, to 16,014.38. The Standard & Poor's 500 slipped 1.23 points, or 0.1 per cent, to 1,852.21. The Nasdaq composite lost 14.99 points, or 0.4 per cent, to 4,268.76. The latest losses pulled the three indexes further down for the year. The Dow is off 8.1 per cent, the S&P 500 is down 9.4 per cent. The Nasdaq is off 14.8 per cent.

ENERGY: Brent crude, a benchmark for international oils, was up 73 cents at $31.05 a barrel in London. It fell $2.56, or 7.8 per cent, to close at $30.32 the day before. It was about $60 a barrel a year ago and $109 two years ago. Benchmark U.S. crude was up 61 cents at $28.55 a barrel in electronic trading on the New York Mercantile Exchange. The futures contract dropped $1.75, or 5.6 per cent, to close at $27.94 a barrel on Tuesday.

CURRENCIES: The euro rose to $1.1294 from $1.1289 the day before. The dollar fell to 114.50 yen from 114.95 yen.



Advertisements

Latest Economic News

  • Italian PM 'guarantees' savers' accounts in 2 troubled banks

    Economic CTV News
    ROME -- Italy's premier says holders of accounts in two troubled Italian banks will have their savings guaranteed despite insolvency proceedings. Premier Paolo Gentiloni was referring to Veneto Banca and Banca Popolare di Vicenza, each struggling with unpaid loans. Source
  • Forget the poop scooping: who will pay the bills for your pet?

    Economic CBC News
    The scene is so common, it's cliché: Your adorable child looks longingly into your eyes, begging for a pet. You somehow navigate the emotionally fraught minefield of cat vs. dog. Then it's time to talk chores. Source
  • 'Eventually, many will run out': How an LCBO strike could impact restaurants and bars

    Economic CBC News
    A long drawn-out strike by liquor store workers could have a significant impact on Ontario's restaurants, wine importers, bars and consumers — but it may offer a boon to some local wineries. "Eventually, many [restaurants and bars] will run out, if not all, if it goes into a month, two months," said Tony Elenis, president and CEO of the Ontario Restaurant Hotel and Motel Association. Source
  • Ivanka Trump ordered to testify in dispute with shoe company

    Economic CTV News
    NEW YORK -- Ivanka Trump must testify in a dispute with an Italian shoemaker over one of her company's shoe designs, a judge said Friday. U.S. District Judge Katherine Forrest rejected a request by the senior White House aide's lawyers that she be blocked from submitting to a deposition in the trademark infringement lawsuit brought by Aquazzura Italia SRL against her and her company IT Collection LLC. Source
  • Cooling measures already affecting hot Toronto housing market: survey

    Economic CTV News
    The recent intervention by the Ontario government to cool the Toronto-area’s hot housing market is already having an impact on sellers and buyers plans for the year, according to a new poll. At the end of April, Ont. Source
  • Why is the American teen summer job disappearing? [Video]

    Economic Toronto Sun
    WASHINGTON — It was at Oregon’s Timberline Lodge, later known as a setting in the horror movie “The Shining,” where Patrick Doyle earned his first real paycheque. He was a busboy. The job didn’t pay much. But Doyle quickly learned lessons that served him for years as he rose to become the CEO of Domino’s, the pizza delivery giant: Source
  • Waiting for a Canadian housing crash? Warren Buffet bets against it buying 38% stake in Home Capital Group Inc.

    Economic Toronto Sun
    Warren Buffett's deal to back Home Capital Group Inc. does more than support a struggling mortgage lender -- it's a vote of confidence for a housing market that everyone from investors to global ratings companies say is a bubble ready to burst. Source
  • CIBC looks to generate quarter of earnings from U.S.

    Economic CBC News
    CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank now earns roughly five per cent of its profits in the U.S. Source
  • CIBC closes acquisition of U.S.-based PrivateBancorp

    Economic CTV News
    TORONTO -- CIBC closed its acquisition of Chicago-based PrivateBancorp on Friday, securing its foothold in the U.S. where CEO Victor Dodig said the bank hopes to one day generate a quarter of its earnings. The Canadian bank (TSX:CM) now earns roughly five per cent of its profits in the U.S. Source
  • Consumer demand for debt as high as it has ever been, Equifax says

    Economic CBC News
    Canadians' appetite for debt is as insatiable as ever, a new report from credit monitoring firm Equifax says. Equifax calculates that Canadian consumers owed $1.729 trillion at the end of the first quarter, an increase of 6.9 per cent in a year. Source