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.


Latest Economic News

  • Asian stocks mixed due to Wall Street gloom

    Economic CTV News
    TOKYO -- Asian shares were mixed Friday as a weaker yen sent Japan's benchmark higher, despite persisting gloom from Wall Street's recent declines. KEEPING SCORE: Japan's benchmark Nikkei 225 gained 0.6 per cent to 17,446.41 and the Shanghai Composite index inched up less than 0.1 per cent to 3,112.91. Source
  • Amazon using Prime service to court food shoppers

    Economic CTV News
    NEW YORK -- Amazon wants you to order your turkey, stuffing and cranberry sauce online this Thanksgiving - its latest effort to make its Prime subscription service a central part of food shopping, much the way it's done for other consumer goods. Source
  • Police arrest, evict oil pipeline protesters in North Dakota

    Economic CTV News
    CANNON BALL, N.D. - A months-long protest over the Dakota Access oil pipeline reached its most chaotic pitch yet when hundreds of law enforcement officers moved in to force activists off private property. Thursday's nearly six-hour operation dramatically escalated the dispute over Native American rights and the project's environmental impact, with officers in riot gear firing bean bags and pepper spray. Source
  • Feds defend Pacific NorthWest LNG decision as court challenges filed

    Economic CTV News
    Catherine McKenna, second left, Minister of Environment and Climate Change, speaks while flanked by Jim Carr, from left to right, Minister of Natural Resources, British Columbia Premier Christy Clark and Dominic LeBlanc, Minister of Fisheries, Oceans and the Canadian Coast Guard, after the federal government announced approval of the Pacific NorthWest LNG project, at the Sea Island Coast Guard Base, in Richmond, B.C. Source
  • United Way loses top ranking as America's largest charity

    Economic CTV News
    NEW YORK -- United Way, ranked as America's largest charity for all but one of the past 25 years, has been emphatically knocked from that spot by Fidelity Charitable, the leader of a rapidly growing philanthropic sector that is transforming the way many Americans give. Source
  • Meet George Jetson: Uber sees flying commuters in 10 years

    Economic CBC News
    Flying commuters like George Jetson could be whizzing to work through the sky less than 10 years from now, according to ride-services provider Uber, which believes the future of transportation is literally looking up. Uber Technologies Inc released a white paper on Thursday envisioning a future in which commuters hop onto a small aircraft, take off vertically and within minutes arrive at their destinations. Source
  • Husky Energy says response to Saskatchewan oil spill cost $90M

    Economic CTV News
    CALGARY -- Husky Energy says it has spent about $90 million responding to a pipeline spill in July that sent some 225,000 litres of heavy oil and diluent into the North Saskatchewan River. The Calgary-based company said Thursday that it believes the amount spent up to Sept. Source
  • Oilsands players hammer down costs, but is it enough?

    Economic CBC News
    The cost of producing a barrel of oilsands oil has come down substantially, but red ink continued to rule the day in the Alberta energy sector as third-quarter earnings rolled out this week. Suncor — one of three major oilsands producers that reported earnings in the past 24 hours — said that its operating costs decreased to $22.15 a barrel, an 18 per cent reduction over last year. Source
  • Police, soldiers move in to force Dakota Access protesters off private land

    Economic CBC News
    Armed law enforcement officers and soldiers, including some in riot gear, moved in on Thursday to remove Dakota Access pipeline protesters camped on private land in the path of the oil pipeline in North Dakota. Authorities with trucks, police cars, military Humvees and buses began the operation just before midday, with sirens blaring and officials telling protesters over a loudspeaker to move out. Source
  • National Bank cutting 600 jobs as part of digital shift

    Economic CBC News
    National Bank announced Thursday it will eliminate about 600 jobs as it aims to speed up its transition to the growing digital economy. At the same time, the Montreal-based bank said it will hire about 500 people, especially in sales and service and information technology functions. Source