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

  • Ontario promises housing affordability measures in the spring budget

    Economic CTV News
    TORONTO -- Ontario Finance Minister Charles Sousa confirmed Monday he plans to include housing affordability measures in his upcoming budget. Premier Kathleen Wynne has said her government is working on a "comprehensive set of plans," to deal with rising home prices in the Greater Toronto and Hamilton Area (GTHA), as well as rising rental rates. Source
  • Home Capital terminates CEO Martin Reid

    Economic CBC News
    Home Capital Group Inc. has terminated its president and CEO Martin K. Reid, effective immediately. Kevin P.D. Smith, chair of the board of directors, said in a statement Monday that the Toronto-based mortgage lender requires leadership that can bring a renewed operational discipline, emphasis on risk management and controls, and focus on improving performance. Source
  • B.C. First Nation gives nod to proposed LNG export facility

    Economic CTV News
    VANCOUVER -- A First Nation on Vancouver Island has approved a proposed liquefied natural gas export facility on its traditional territories. Leaders of the Huu-ay-aht First Nation and the CEO of Vancouver-based Steelhead LNG held a joint news conference in Vancouver on Monday to announce what Chief Robert Dennis said was the First Nation's "official entry into the international business world. Source
  • Officials gear up to assign infrastructure cash or lose control over its spending

    Economic CTV News
    OTTAWA - Provincial governments have been warned that they have until this time next year to start assigning billions in infrastructure cash to eligible projects, or else they could lose control over how it can be spent. Source
  • B.C. appeal court rules against Burnaby in bylaw battle with Trans Mountain

    Economic CTV News
    VANCOUVER -- A legal battle between the City of Burnaby and the Trans Mountain pipeline expansion has ended with the British Columbia Court of Appeal ruling the National Energy Board can override municipal bylaws. The fight began in 2014 when Trans Mountain was set to begin field studies on Burnaby Mountain, which required it to cut down trees, drill boreholes and operate heavy machinery -- activities that violate the city's bylaws. Source
  • Finance minister to tout Canada-U.S. trade to U.S. governors and mayors

    Economic CTV News
    CALGARY -- Canada's finance minister says he intends to head south of the border next week to reinforce the importance of Canada-U.S. trade. "Our approach was to be deeply engaged with the new administration from Day 1 . Source
  • Heroux-Devtek stocks drop after USAF rejects bid for new contract

    Economic CTV News
    LONGUEUIL, Que. - Heroux-Devtek Inc. shares hit a 52-week low Monday after the landing gear maker said its bid for a new contract with the U.S. military was rejected and work under an existing contract will be phased out within two years. Source
  • 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