World stocks tumble as oil falters

HONG KONG - World stocks were mostly lower on Wednesday, as sliding oil prices and fresh signs of global economic weakness weighed on investor sentiment.

See Full Article

KEEPING SCORE: European stocks slid in early trading, with France's CAC 40 losing 0.5 per cent to 4,216.54 and Germany's DAX shedding 0.7 per cent to 9,350.26. Britain's FTSE 100 dropped 0.4 per cent to 5,936.02. U.S. stocks were poised for a weak open. Dow futures dipped 0.1 per cent to 16,381.00 and broader S&P 500 futures were down 0.1 per cent to 1,914.80.

CRUDE CONCERNS: Saudi Arabia's oil minister, Ali Al-Naimi, told a meeting of energy leaders in Houston on Monday that output cuts aimed at boosting slumping crude prices won't work. He said that the market should instead let some operators go out of business. Crude oil tumbled more than 4 per cent. The long-term drop in oil prices, which are hovering around $30 a barrel after tumbling from more than $100 in mid-2014, has sliced into profits at energy companies. It's also now starting to hurt income at big U.S. banks as higher-cost producers struggle to repay loans taken out during the boom.

ANALYST INSIGHT: "The disappearance of risk appetite after last week's positive performance can be traced to bad news around oil once again," said Bernard Aw, market strategist at IG.

GLOBAL ECONOMY: Worries about the world economy are also weighing on investors' minds. Singapore and Hong Kong both reported Wednesday that growth slowed last year and that their governments forecast further weakness for 2016 on softer global demand for their exports and services. Meanwhile, China's currency slipped as the central bank guided its exchange rate lower for the second straight day.

ENERGY: Benchmark U.S. crude futures skidded 72 cents, or 2.2 per cent, to $31.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.52, or 4.6 per cent, to settle at $31.87 a barrel on Monday. Brent crude, which is used to price oils internationally, fell 52 cents, or 1.6 per cent, to $32.75 a barrel in London.

ASIAN SCORECARD: Japan's benchmark Nikkei 225 index lost 0.9 per cent to finish at 15,915.79 as investors seeking haven in the yen pushed it higher, hurting shares of the country's big exporters. South Korea's Kospi edged 0.1 per cent lower to end at 1,912.53, and Hong Kong's Hang Seng fell 1.1 per cent to 19,192.45. The Shanghai Composite Index in mainland China rose 0.9 per cent to finish at 2,928.90. Australia's S&P/ASX 200 slid 2.1 per cent to 4,875.00. Benchmarks in Taiwan, Singapore, Malaysia and the Philippines also fell.

CURRENCIES: The dollar fell to 111.94 yen from 111.97 yen in the previous day's trading. The euro weakened to $1.0981 from $1.1018.



Advertisements

Latest Economic News

  • Bell Media names Randy Lennox president after Mary Ann Turcke leaves

    Economic CBC News
    Bell Media has named Randy Lennox as its president following the departure of Mary Ann Turcke for a new opportunity with the NFL. Lennox, a former executive at Universal Music Canada, joined the media giant in August 2015 as president of entertainment production and broadcasting. Source
  • Bell Media names Randy Lennox as new president

    Economic CTV News
    MONTREAL - Bell Media has named Randy Lennox as its president following the departure of Mary Ann Turcke for a new opportunity with the NFL. Lennox, a former executive at Universal Music Canada, joined the media giant in August 2015 as president of entertainment production and broadcasting. Source
  • Are loyalty programs even worth it anymore?

    Economic CTV News
    MONTREAL -- The value of customer loyalty programs is under increased scrutiny by companies and users in the wake of Air Miles' recent reversal of an unpopular expiration policy. The operator of the shopper reward program, LoyaltyOne, angered many members last year with its proposal to void unused Air Miles after five years, only to abandon that plan weeks before it was to take effect. Source
  • Manulife admits fine by money-laundering watchdog Fintrac

    Economic CTV News
    TORONTO -- Manulife Financial Corp. confirmed Monday its banking unit was penalized last year after Canada's money-laundering watchdog concluded it failed to report a suspicious transaction and various money transfers. Last year, Fintrac fined the bank $1.15 million, but it withheld the bank's identity, saying it was exercising its discretion to do so. Source
  • B.C. increasing minimum wage to $11.35

    Economic CTV News
    VICTORIA - The minimum wage in British Columbia will rise by 50 cents to $11.35 an hour in mid-September. The ministry says there will be an identical increase of 50 cents to the minimum wage for liquor servers, bringing it to $10.10 per hour in September. Source
  • 5 billion mobile phone users projected for 2017: study

    Economic CTV News
    With populations in Asia on the rise, the number of mobile phones, which stood at 4.8 billion a year ago, should mushroom to 5.7 billion, or three quarters of the world's population, by 2020. The number of mobile phone users globally will surpass five billion by the middle of this year, according to a study released Monday by GSMA, the association of mobile operators. Source
  • Behold the KEYone: Last BlackBerry-designed phone with a physical keyboard

    Economic CTV News
    TORONTO - Fans of BlackBerry's classic physical keyboard will have reason to celebrate when the last product designed in part by the former smartphone leader becomes available in April. The Waterloo, Ont.-based firm played a role in developing the KEYone, named for the return of the QWERTY keyboard that other smartphone designers have mostly long retired. Source
  • Manulife revealed as bank FINTRAC fined $1.15M for anti-money laundering failures

    Economic CBC News
    The head of Canada's top financial crime watchdog is second-guessing his decision last year to withhold the name of a Canadian bank — which CBC Investigates has identified — fined $1.15 million for violating the federal anti-money laundering and terrorist financing act. Source
  • Manulife revealed as bank fined $1.15M for violating anti-money laundering reporting rules

    Economic CBC News
    The head of Canada's top financial crime watchdog is second-guessing his decision last year to withhold the name of a Canadian bank — which CBC Investigates has identified — fined $1.15 million for violating the federal anti-money laundering and terrorist financing act. Source
  • Billionaire Wilbur Ross heads toward confirmation as U.S. Commerce secretary

    Economic CTV News
    WASHINGTON -- Billionaire investor Wilbur Ross is headed toward confirmation as Commerce secretary in U.S. President Donald Trump's administration. The Senate is set to vote on Ross' nomination Monday evening. Ross easily cleared the Senate Commerce Committee and a procedural vote by the full Senate. Source