World stocks uneven ahead of European Central Bank meeting

HONG KONG - World stocks markets traded unevenly Wednesday on investor uncertainty over whether European Central Bank policymakers would follow through on promises to help revive flagging growth at a policy meeting this week.

See Full Article

KEEPING SCORE: European stocks were moderately higher in early trading, with France's CAC 40 rising 0.4 per cent to 4,423.46 and Germany's DAX adding 0.4 per cent to 9,727.59. Britain's FTSE 100 edged up 0.1 per cent to 6,130.56. U.S. stocks were poised to open higher, with Dow futures adding 0.3 per cent to 17,028.00 and broader S&P 500 futures up 1,986.40.

ECB IN FOCUS: Investors are focused on the European Central Bank's policy meeting on Thursday. Many analysts expect the bank to open the stimulus taps further based on hints from ECB chief Mario Draghi and economic data that showed inflation across the 19-country eurozone has slipped under zero. The ECB could send deposit rates further into negative territory or step up a bond buying program. The most likely scenario is a cut to deposit rates, which could give banks an incentive to lend more.

QUOTEWORTHY: "The market has already priced in this expectation (of further ECB stimulus). However if this doesn't happen tomorrow then we will see more volatility following the disappointment and the euro will also feel under pressure," said Margaret Yang, an analyst at CMC Markets in Singapore. "Some traders, they may be more cautious and stay away from the markets right now and wait for after the ECB's decision to get into the markets."

ASIA'S DAY: Japan's benchmark Nikkei 225 index lost 0.8 per cent to close at 16,642.20 while South Korea's Kospi rose 0.3 per cent to end at 1,952.95 after recovering early losses. Hong Kong's Hang Seng dipped 0.1 per cent to 19,996.26 and the Shanghai Composite Index in mainland China retreated 1.3 per cent to 2,862.56. Australia's S&P/ASX 200 gained 1 per cent to 5,157.20, while markets in Southeast Asia were mixed.

ENERGY: Benchmark U.S. crude rose 41 cents to $36.91 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.40 to settle at $36.50 a barrel on Tuesday. Brent crude, which is used to price international oils, added 61 cents to $40.27 a barrel in London.

CURRENCIES: The dollar slipped to 112.51 yen from 112.58 yen. The euro weakened to $1.0973 from $1.0998.



Advertisements

Latest Economic News

  • Asian markets drop despite Wall Street gains

    Economic CTV News
    BEIJING - Asian markets were mostly lower Tuesday after Wall Street gained as Italy moved toward forming a euroskeptic-led government. KEEPING SCORE: The Shanghai Composite Index declined 0.2 per cent to 3,208.20 and Sydney's S&P-ASX 200 lost 0.7 per cent to 6,039.20. Source
  • Anxiety lands as WestJet pilot strike looms

    Economic CBC News
    Dana Sorensen booked a WestJet flight from her home in Vancouver to Calgary, where she's racing in the upcoming ultra-marathon. But the anxiety of a looming pilots' strike was too much to bear. She paid for another flight on a different airline, a peace of mind that cost her an extra $500. Source
  • Banks poised to report strong Q2 despite housing slowdown: analysts

    Economic CTV News
    TORONTO -- Canada's biggest banks are upping the ante in the mortgage wars amid slowing growth and national housing sales at lows not seen in several years, but analysts say real estate market woes won't dent lenders' earnings, just yet. Source
  • Insider Q&A: Should investors worry about 'peak earnings?'

    Economic CTV News
    NEW YORK -- Speaking about a peak suddenly made stocks weak. Investors got a rude awakening in April when executives at Caterpillar said the construction and mining equipment company didn't expect to top its first-quarter profit for the rest of the year. Source
  • From airlines to pizza parlours, EU businesses adopt data law

    Economic CTV News
    LONDON -- Lisa Meyer's hair salon is a cozy place where her mother serves homemade macaroons, children climb on chairs and customers chat above the whirr of hairdryers. Most of the time Meyer is focused on hairstyles, colour trends and keeping up with appointments. Source
  • China says it can't guarantee no more trade tension with U.S.

    Economic CTV News
    BEIJING -- China's government said Monday it cannot guarantee that renewed trade tension with Washington can be avoided after U.S. Treasury Secretary Steven Mnuchin declared a temporary truce in a spiraling dispute that prompted worries of a chilling of global commerce. Source
  • Trump pulls back from brink of trade war with China

    Economic CTV News
    WASHINGTON -- U.S. President Donald Trump on Monday hailed his administration's temporary truce with China on trade, even as his Treasury secretary and China struck a note of caution on the latest agreement. After high-level talks in Washington last week, Beijing has agreed to "substantially reduce" America's trade deficit with China. Source
  • Oregon's flooded recreational pot market a cautionary tale: economists

    Economic CBC News
    As marijuana farmers in Oregon say a flood of supply is killing their businesses less than three years after recreational cannabis was legalized, economists say it's a warning to Canada. Stephen Easton, professor of economics at Simon Fraser University and senior fellow at the Fraser Institute, says large fluctuations in price and supply are bound to happen when you create a legal market where an illegal market already exists. Source
  • Canada should heed cautionary tale of Oregon's flooded pot market

    Economic CTV News
    VANCOUVER -- As marijuana farmers in Oregon say a flood of supply is killing their businesses less than three years after recreational cannabis was legalized, economists say it's a warning to Canada. Stephen Easton, professor of economics at Simon Fraser University and senior fellow at the Fraser Institute, says large fluctuations in price and supply are bound to happen when you create a legal market where an illegal market already exists. Source
  • Global markets higher as U.S., China put trade war on hold

    Economic CTV News
    SEOUL, Korea, Republic Of -- Global stock markets were higher on Monday as investors cheered the outcome of negotiations between the United States and China that put a trade war on hold, clearing uncertainty. KEEPING SCORE: European markets opened higher. Source