Global stocks gain after reassurances from China on yuan

MANILA, Philippines - Global stocks rose Friday after China's central bank governor pledged not to devalue the yuan for the sake of export competitiveness.

See Full Article

But gains were limited as oil prices fell back and G20 financial leaders meeting in Shanghai offered mixed messages over the potential for new stimulus to stave off the risk of recession.

KEEPING SCORE: Most European indices were up in early trading. Britain's FTSE 100 climbed 1.2 per cent to 6,086.03. Germany's DAX gained 2 per cent at 9,523.50. France's CAC 40 rose 1.9 per cent to 4,330.63. Dow and S&P futures both rose 0.5 per cent, suggesting an upbeat start to trading.

CHINA CURRENCY: Zhou Xiaochuan, governor of China's central bank, told a conference on the sidelines of a meeting of financial leaders of the Group of 20 industrial nations that Beijing would not engage in devaluations for the sake of its export competitiveness. Zhou urged that the gathering focus on managing lacklustre global demand, structural economic reforms and promoting "sustainable and balanced" growth.

ANALYST VIEWPOINT: "Taken alongside Ministry of Finance proposals that China can afford a fiscal deficit of 4 per cent of GDP, further stimulatory support does look forthcoming in 2016," Angus Nicholson of IG said in a commentary. "However, Zhou Xiaochuan is unlikely to be able to abide by all his statements today, at least if we take them at face value."

G20 FINANCE AGENDA: Finance ministers and central bankers of the G20 rich and developing economies were seeking to douse hopes a two-day meeting in Shanghai that began Friday will produce specific growth plans similar to those rolled out in 2009 in response to the global crisis. Instead, many were urging faster progress on pro-growth structural reforms instead of relying on monetary and fiscal policy to boost growth.

ASIA'S DAY: Japan's Nikkei 225 closed 0.3 per cent higher at 16,188.41 while Hong Kong's Hang Seng index rose 2.5 per cent to 19,364.15. Australia's S&P/ASX 200 closed nearly flat at 4,945.10. The Shanghai Composite Index rose 1 per cent to 2,767.21 after plunging 6.4 per cent Thursday. South Korea's Kospi rose 1.6 per cent to 1,920.16. Markets in Southeast Asia and Taiwan also gained.

OIL: U.S. crude gained 49 cents to $33.56 a barrel in electronic trading on the New York Mercantile Exchange. It closed up 92 cents or nearly 3 per cent to $33.07 a barrel on Thursday. Brent crude oil, the global benchmark, rose 33 cents to $36.03 a barrel. On Thursday, it rose 63 cents to $35.70 a barrel.

CURRENCIES: The dollar rose to 112.91 yen from 112.30 in the previous day's trading. The euro fell to $1.1012 from $1.1020.



Advertisements

Latest Economic News

  • Twitter suspended 58 million accounts in fourth quarter

    Economic CBC News
    Twitter suspended at least 58 million user accounts in the final three months of 2017, according to data obtained by The Associated Press. The figure highlights the company's newly aggressive stance against malicious or suspicious accounts in the wake of Russian disinformation efforts during the 2016 U.S. Source
  • Owner of Las Vegas casino where shooter stayed sues survivors of gun massacre

    Economic CBC News
    MGM Resorts International has sued hundreds of victims of the deadliest mass shooting in modern U.S. history in a bid to avoid liability for the gunfire that rained down from its Mandalay Bay casino-resort in Las Vegas. Source
  • NAACP lifts travel advisory against American Airlines

    Economic CTV News
    WASHINGTON -- The NAACP is lifting its travel advisory against American Airlines, saying the company is making improvements that address worries about African-Americans being subject to discrimination or even unsafe conditions while flying. NAACP President Derrick Johnson made the announcement at the NAACP's national convention in San Antonio, Texas. Source
  • A founder of WestJet and JetBlue commits to order 60 A220s for new U.S. airline

    Economic CBC News
    David Neeleman, one of the founders of WestJet Airlines Ltd. and JetBlue Airways Corp., has committed to buy 60 Airbus A220-300 aircraft for a new U.S. airline he's launching. A memorandum of understanding for the aircraft which was developed by Bombardier Inc. Source
  • Netflix shares plunge as streaming company sees 'hiccup' in subscriber growth

    Economic CBC News
    Netflix stocks fell more than 14 per cent Tuesday after the company announced it added fewer subscribers in the second quarter than analysts were expecting. The company also downgraded its expectations for the third quarter, but analysts are calling the results a hiccup and say the company remains a compelling investment opportunity in the long run. Source
  • Salt miners in Goderich, Ont., vote to end 12-week strike

    Economic CTV News
    GODERICH, Ont. -- Workers at a salt mine in Goderich, Ont., have accepted a new collective agreement, ending a 12-week strike. Unifor says members of Local 16-O voted Monday to accept the agreement with their employer, Compass Minerals. Source
  • U.S. and Canadian stocks creep higher at late-morning, loonie lower

    Economic CTV News
    TORONTO - Canada's main stock index crept higher in late-morning trading, while the loonie moved lower compared with the U.S. dollar. The Toronto Stock Exchange's S&P/TSX composite index was up 3.35 points to 16,498.08, after 90 minutes of trading. Source
  • Moody's upgrades credit rating outlook for Canada's major banks

    Economic CBC News
    Moody's Investors Service raised its credit rating outlook on Canada's major banks on Tuesday, just over 14 months after it lowered the ratings citing high debt levels and soaring house prices. Moody's said it boosted its outlook on Royal Bank, Toronto-Dominion Bank, National Bank, Canadian Imperial Bank of Commerce, Bank of Montreal and Bank of Nova Scotia from negative to stable. Source
  • A founder of WestJet, JetBlue commits to buying 60 Airbus planes for new airline

    Economic CTV News
    One of the founders of WestJet Airlines Ltd. and JetBlue Airways Corp. has committed to buy 60 Airbus A220-300 aircraft for a new U.S. airline he's launching. A memorandum of understanding for the aircraft which was developed by Bombardier Inc. Source
  • Amazon founder Jeff Bezos now richest person in decades

    Economic CTV News
    Bezos's net worth topped $150 billion on Monday, according to the Bloomberg Billionaires Index, making him the richest person in decades. The surge in the share price for Amazon -- in which Bezos holds a stake of some 16 percent -- has lifted his wealth by some $50 billion this year. Source