European markets slump, North America set to open lower... VW emissions scandal set to spread... Oil prices down, IEA gets bullish... TD Bank says China is the biggest risk to Canada’s growth...
European markets slump, North America set to open lower
The TSX and Wall Street may have closed with gains Monday but both are set to open lower in Tuesday’s session following a sharp fall in European indexes.
The main European markets have reacted to the huge losses on VW’s value as the emissions scandal continues to gain momentum. That added to general concern about the regional and global economies.
Asian markets closed generally higher amid light trading. Tokyo was closed again for a national holiday.
VW emissions scandal set to spread
Volkswagen’s boss admitted Tuesday that the automaker screwed up and the company has set aside more than $7 billion in the third quarter relating to the issue. South Korean authorities are the latest to say that they are considering a review of the firm’s emissions stats and some industry insiders are speculating that VW may not be the only manufacturer with inaccurate data.
Oil prices down, IEA gets bullish
Monday saw a rally in oil prices but they’ve headed lower again Tuesday as demand fears and over-production weigh heavily. However US shale production appears to be slowing as low prices make output uneconomical. Analysts told Reuters that the uncertainty will continue due to volatility in equity markets and the weakness of certain markets, China especially. The IEA has become more bullish in its outlook for the US shale producers.
TD Bank says China is the biggest risk to Canada’s growth
Toronto-Dominion Bank says that the greatest risk to Canada’s growth is China. In a report issued Monday it says that moderate growth is expected in the second half of this year but that other countries, China in particular, pose the largest risk. China is the world’s biggest importer of raw materials and its prosperity or otherwise, will affect world prices for commodities. As Canada’s trading partners would also be affected by the price drop, it could also hit other Canadian exports.
The TSX and Wall Street may have closed with gains Monday but both are set to open lower in Tuesday’s session following a sharp fall in European indexes.
The main European markets have reacted to the huge losses on VW’s value as the emissions scandal continues to gain momentum. That added to general concern about the regional and global economies.
Asian markets closed generally higher amid light trading. Tokyo was closed again for a national holiday.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 16,510.19 (+0.77 per cent) | +0.31 per cent | -3.86 per cent |
| TSX Composite | 13,779.44 (+0.97 per cent) | +2.27 per cent | -8.92 per cent |
| Europe (at 6.30am ET) |
|||
| UK FTSE | 5,987.29 (-1.99 per cent) | -3.24 per cent | -11.61 per cent |
| German DAX | 9,712.83 (-2.37 per cent) | -4.07 per cent | -0.38 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,339.03 (+0.93 per cent) | -6.98 per cent | +40.36 per cent |
| Japan Nikkei | 18,070.21 (-1.96 per cent) | -7.03 per cent | +10.72 per cent |
| Other Data (at 6.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 48.34 (-1.19 per cent) |
45.83 (-1.82 per cent) |
1129.90 (-0.26 per cent) |
U$0.7551 |
| Aus. Dollar |
|||
| U$0.7112 | |||
VW emissions scandal set to spread
Volkswagen’s boss admitted Tuesday that the automaker screwed up and the company has set aside more than $7 billion in the third quarter relating to the issue. South Korean authorities are the latest to say that they are considering a review of the firm’s emissions stats and some industry insiders are speculating that VW may not be the only manufacturer with inaccurate data.
Oil prices down, IEA gets bullish
Monday saw a rally in oil prices but they’ve headed lower again Tuesday as demand fears and over-production weigh heavily. However US shale production appears to be slowing as low prices make output uneconomical. Analysts told Reuters that the uncertainty will continue due to volatility in equity markets and the weakness of certain markets, China especially. The IEA has become more bullish in its outlook for the US shale producers.
TD Bank says China is the biggest risk to Canada’s growth
Toronto-Dominion Bank says that the greatest risk to Canada’s growth is China. In a report issued Monday it says that moderate growth is expected in the second half of this year but that other countries, China in particular, pose the largest risk. China is the world’s biggest importer of raw materials and its prosperity or otherwise, will affect world prices for commodities. As Canada’s trading partners would also be affected by the price drop, it could also hit other Canadian exports.
