World stocks sink on lack of G20 action, yuan weakness

HONG KONG -- Most global stock markets skidded lower Monday after world finance officials ended a weekend meeting in Shanghai without any specific pledges for joint action to stimulate sagging global economic growth and the Chinese yuan weakened sharply.

See Full Article

KEEPING SCORE: European benchmarks mostly fell in early trading, with Germany's DAX tumbling 1.5 per cent to 9,369.00 and France's CAC 40 sliding 1.1 per cent to 4,266.71. Britain's FTSE 100 rose 0.5 per cent to 6,055.91. U.S. stocks were poised to open lower, with Dow futures shedding 0.6 per cent to 16,503.00 and broader S&P 500 futures down 0.6 per cent to 1,931.70.

SHANGHAI SUMMIT: Finance ministers and central bankers from the Group of 20 rich and developing countries promised at their meeting Saturday in Shanghai to use "all tools" at their disposal to bolster weak global growth, which is at its lowest level in two years. They also vowed not devalue their currencies to boost exports. They declared that the global economy is healthy, but acknowledged they need to do more to boost growth, without announcing any joint plan of action.

MARKET INSIGHT: "Following the optimism from traders on Friday ahead of the G-20 Summit, it looks like a case of the Monday morning blues after the influential group of ministers and bankers failed to come up with any concrete measures to boost growth," said Stephen Innes, senior foreign exchange trader at OANDA.

YUAN JITTERS: Chinese authorities guided the tightly controlled yuan sharply lower on Monday morning, in a move that sent the country's stock markets on another wild downward swing, taking the Shanghai benchmark down as much as 4.4 per cent in morning trading. Central bank officials weakened the yuan by more than 114 basis points to 6.5452 to the dollar in their daily fix. Investors worry that sharp falls in China's currency signal Beijing's willingness to devalue the yuan further to prevent growth from slowing more than expected.

GLOBAL OUTLOOK: Investor sentiment is also cautious ahead of the release of a slew of economic data this week. Surveys of purchasing managers in the manufacturing and service sectors are due Tuesday for China, the U.S. and other countries in Asia and Europe.

ASIAN SCORECARD: Japan's benchmark lost 1 per cent to close at 16,026.76 while South Korea's Kospi dipped 0.2 per cent to end at 1,916.66. Hong Kong's Hang Seng slid 1.3 per cent to 19,111.93 while the Shanghai Composite Index tumbled 2.9 per cent to 2,687.98 after the yuan's decline. Australia's S&P/ASX 200 was almost flat at 4947.90. Benchmarks in southeast Asia were mixed.

ENERGY: Benchmark U.S. crude oil fell 20 cents to $32.58 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 29 cents, or 1 per cent, to settle at $32.78 a barrel on Friday. Brent crude, the global benchmark, rose 25 cents to $35.19.

CURRENCIES: The dollar fell to 112.89 yen from 113.98 yen in late trading Friday. The euro slipped to $1.0918 from $1.0932.



Advertisements

Latest Economic News

  • Asian markets mixed ahead of Trump's inauguration

    Economic CTV News
    KUALA LUMPUR, Malaysia - Asian markets were mixed in cautious trading Friday ahead of the inauguration of President-elect Donald Trump. China's report that its economy grew at a 6.8 per cent pace in October-December was in line with expectations. Source
  • Trump Treasury pick defends foreclosure actions, asset disclosure

    Economic CTV News
    WASHINGTON -- Steven Mnuchin, President-elect Donald Trump's pick as Treasury secretary, clashed with Democrats during a lengthy confirmation hearing Thursday over his handling of thousands of mortgage foreclosures and his failure to initially disclose to the committee nearly $100 million in assets and interests in a Cayman Islands corporation. Source
  • Facebook CEO trying to buy out land near his Hawaii estate

    Economic CTV News
    HONOLULU -- Facebook CEO Mark Zuckerberg is going to court to gain ownership of isolated pockets of land tucked away within his sprawling estate in Hawaii. Many of the 14 parcels on the island of Kauai are less than an acre. Source
  • Uber pays US$20 million to settle claims of driver deception

    Economic CTV News
    SAN FRANCISCO -- Uber Technologies is paying $20 million to settle allegations that it duped people into driving for its ride-hailing service with false promises about how much they would earn and how much they would have to pay to finance a car. Source
  • George Soros says Trump a 'would-be dictator' who will rattle markets

    Economic CTV News
    NEW YORK -- Billionaire investor George Soros said Thursday he views President-elect Donald Trump as an "impostor and con man and a would-be dictator" who will rattle financial markets. Soros, a big supporter of Hillary Clinton's failed presidential campaign, said he is confident Trump will be checked by Congress and the Constitution. Source
  • Car makers concerned about Trump, says Canadian innovation minister

    Economic CTV News
    OTTAWA -- A Liberal cabinet minister says he's hearing concerns from auto makers about negative effects on their industry from a Donald Trump presidency. Economic Development Minister Navdeep Bains says he's had conversations with concerned automakers at the recent Detroit auto show and during his current visit to the World Economic Forum in Davos, Switzerland. Source
  • Trump uncertainty may be 'golden moment' for Canadian firms to invest: expert

    Economic CTV News
    OTTAWA - A well-known trade expert is pitching the counter-intuitive idea that widespread uncertainty tied to president-elect Donald Trump's protectionist vows has likely created a once-in-a-lifetime investment opportunity for companies. Export Development Canada's Peter Hall says he's been advising business leaders to consider swooping in on investment opportunities here and abroad while others sit idle from fear over the trade and tax changes being floated in the U.S. Source
  • Trump pays $25 million to settle Trump University cases

    Economic CTV News
    SAN DIEGO -- President-elect Donald Trump has paid $25 million to settle three lawsuits against his now-defunct Trump University, signalling that a judge's approval of a settlement agreement remains on track for March 30. Trump Entrepreneur Initiative LLC paid the money into escrow ahead of Wednesday's deadline, said plaintiff attorney Jason Forge, who represented people who took seminars that promised to teach success in real estate. Source
  • Manufacturing sales top expectations for November, gaining 1.5 per cent

    Economic CTV News
    OTTAWA -- Canadian manufacturing sales topped expectations in November as they climbed 1.5 per cent in the month to $51.8 billion. Economists had expected a gain of 1.0 per cent for the month, according to Thomson Reuters. Source
  • NewLeaf cancels more flights amid 'schedule change'

    Economic CBC News
    Budget flight company NewLeaf has cancelled more flights in Ontario, B.C., Alberta and Nova Scotia for the next few weeks. According to a memo sent to passengers, four flights — all on Sundays — have been cancelled, effective Jan. Source