Global stocks mixed after China cuts growth target

BEIJING -- Global stocks were mixed Monday after Beijing cut its growth target for its cooling economy and promised more market-opening reforms.

See Full Article

KEEPING SCORE: In early trading, Germany's DAX fell 0.8 per cent to 9,747.11 points and France's CAC-40 lost 0.4 per cent to 4,438.60. Britain's FTSE 100 lost 0.5 per cent to 6,170.38. On Friday, the DAX gained 0.7 per cent and the CAC-40 rose 0.9 per cent. Wall Street looked set for losses, with futures for the Dow Jones industrial average and Standard & Poor's 500 index off 0.2 per cent.

CHINESE GROWTH CUT: In a weekend speech to China's legislature, Premier Li Keqiang lowered Beijing's official growth target to 6.5 to 7 per cent from last year's "about 7 per cent" and promised more market-opening reforms. The ruling Communist Party is striving for more self-sustaining growth based on domestic consumption to reduce reliance on trade and investment. But the slowdown is rattling markets and unnerving China's trading partners as it dampens demand for industrial components and raw materials. Li promised to open oil, power, telecoms and other state-dominated industries to private competitors, but did not say if foreign companies would be allowed in. To stimulate slowing growth, Li said the government will boost deficit spending.

ANALYST'S TAKE: "Instead of a specific target, setting a growth range reflects the (Chinese) government's desire for policymaking flexibility as they push for longer-term economic reforms," DBS Bank economists said in a report. They noted Li also abandoned Beijing's target for trade growth after exports fell far short of last year's official goal. "Amid a weak global outlook, China may also be wary of setting an ambitious trade forecast on concerns it might raise expectations that Beijing would boost exports via yuan depreciation."

ASIA'S DAY: The Shanghai Composite Index rose 0.8 per cent to 2,697.34 and Sydney's S&P ASX 200 gained 1 per cent to 5,142.80. Seoul's Kospi advanced 0.1 per cent and Bangkok and Taiwan also rose. Tokyo's Nikkei retreated 0.6 per cent to 6,911.32 and Hong Kong's Hang Seng shed 0.1 per cent to 20,159.72. Benchmarks in Singapore, Jakarta and Manila also declined. Indian markets were closed for a holiday.

ENERGY: Benchmark U.S. crude gained 41 cents to $36.33 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.35 on Friday to close at $35.92. Brent crude, used to price international oils, added 58 cents to $39.30 per barrel. On Friday, it gained $1.65 to $38.72.

CURRENCY: The dollar declined to 113.57 yen from Friday's 113.71 yen. The euro edged down to $1.0957 from $1.1000.



Advertisements

Latest Economic News

  • N.L. unveils 12-year plan for offshore oil, gas development

    Economic CTV News
    ST. JOHN'S, N.L. -- Cash-strapped Newfoundland and Labrador has announced a 12-year plan to speed and enhance development of its offshore oil and gas resources. The province will review regulations and advance tie-back technology to allow more extraction at existing sites with less cost. Source
  • N.L. unveils plan to double oil production by 2030

    Economic CBC News
    The Newfoundland and Labrador government launched a new plan on Monday for growing its oil and gas sector. Highlights of Advance 2030 include doubling offshore oil production by 2030 through reducing development time for projects. Targets for the plan include drilling more than 100 new exploration wells, and tapping into multiple basins to produce more than 650,000 barrels of oil per day from new and existing projects, as well as commercial natural gas production. Source
  • Your auto insurance will be cheaper if you sign up in this month: LowestRates.ca

    Economic CTV News
    Your auto insurance rate is cheaper if you sign up when the weather is warm. That’s the key takeaway from a two-year price analysis by LowestRates.ca. The financial product comparison website found that rates quoted in Ontario were at their lowest between July and October, dipping by as much as six per cent in August 2017 from the annual average. Source
  • Canadian lumber producers buoyant about 2018 with high hopes for duties

    Economic CTV News
    MONTREAL - Softwood lumber duties aren't dampening the spirits of Canadian lumber producers as strong demand from rising U.S. housing starts and tight supply is expected to keep prices high throughout 2018. The number of U.S. Source
  • Markets rise as investors' jitters ease

    Economic CTV News
    SEOUL, Korea, Republic Of - Asian markets were higher on Monday following Wall Street gains last week, as investors' jitters showed signs of easing. Many major markets were closed on holidays. KEEPING SCORE: Japan's Nikkei 225 jumped 2 per cent to 22,149.21. Source
  • European shares drift lower as traders take a breather

    Economic CTV News
    LONDON -- European shares drifted lower Monday as investors paused for breath following a sizeable rally last week. Despite the move lower, there are few signs of the turmoil that gripped stock markets earlier this month. Source
  • Montreal's Oreo cookie plant prepares to shut its doors

    Economic CTV News
    MONTREAL -- There was a time when the whole neighbourhood surrounding an east-end Montreal bakery would smell like baking Oreos. But that era comes to an end this month when snack-maker Mondelez International closes its Montreal factory for good. Source
  • Oilsands tech touted for pipeline capacity boost still years from deployment

    Economic CBC News
    Two years after a blue-ribbon panel called on the Alberta government to encourage partial upgrading of bitumen from the oilsands to enhance value and free up more pipeline room for exports, the idea remains years away from commercialization. Source
  • Nunavut lagging behind in ramp-up to marijuana legislation

    Economic CTV News
    IQALUIT, Nunavut -- With marijuana legalization only months away, members of Nunavut's new government are finally discussing how the territory will handle the change. "We do feel behind in our preparation," said Dan Carlson, Nunavut's deputy minister of finance. Source
  • Bitumen upgrade still years away for Alberta oilsands

    Economic CTV News
    CALGARY -- Two years after a blue-ribbon panel called on the Alberta government to encourage partial upgrading of bitumen from the oilsands to enhance value and free up more pipeline room for exports, the idea remains years away from commercialization. Source