Trade data weighs on Asia, Europe gains... IMF warns of “economic derailment”... Big US banks to launch instant mobile payments...
Trade data weighs on Asia, Europe gains
Oil prices are trending higher this morning on hopes of a deal to freeze output at January levels. The OPEC and non-OPEC producers’ agreement could be sealed later this month.
While higher oil prices have added some positive sentiment to markets Wednesday, the weaker-than-expected Chinese trade data revealed in the previous session has weighed on Asian investors.
The major Asian indexes have closed mixed with Sydney and Seoul ending with gains but the others closing lower. Tokyo was hit by exporters’ stock falling on the stronger yen against the greenback.
European markets are holding above the line with the ECB meeting Thursday. Earnings have boosted the major indexes and a survey of manufacturing businesses in the UK showed growth in January of 0.7 per cent following poor output in 2015.
Wall Street and Toronto are expected to open higher.
IMF warns of “economic derailment”
The International Monetary Fund has issued a warning that the world faces an “economic derailment” and needs urgent action. Deputy director David Lipton was speaking at the National Association for Business Economics in Washington Tuesday and warned of a “weakening baseline” for the global economy.
The IMF’s forecast for global growth is currently 3.4 per cent but it has said it is likely to reduce that when it updates it outlook next month. Mr Lipton said that urgent action is needed to boost the global economy as we are at a “delicate juncture.”
Big US banks to launch instant mobile payments
A group of America’s big banks are to launch instant mobile payments to allow smartphone and tablet to conduct transactions securely. While PayPal and others already offer similar products, this innovation will be bank-to-bank payments without a third party. The banks involved include JP Morgan Chase, Wells Fargo Bank of America and Bancorp; they jointly own a system called clearXchange.
Oil prices are trending higher this morning on hopes of a deal to freeze output at January levels. The OPEC and non-OPEC producers’ agreement could be sealed later this month.
While higher oil prices have added some positive sentiment to markets Wednesday, the weaker-than-expected Chinese trade data revealed in the previous session has weighed on Asian investors.
The major Asian indexes have closed mixed with Sydney and Seoul ending with gains but the others closing lower. Tokyo was hit by exporters’ stock falling on the stronger yen against the greenback.
European markets are holding above the line with the ECB meeting Thursday. Earnings have boosted the major indexes and a survey of manufacturing businesses in the UK showed growth in January of 0.7 per cent following poor output in 2015.
Wall Street and Toronto are expected to open higher.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 16,964.10 (-0.64 per cent) | +5.85 per cent | -5.00 per cent |
| TSX Composite | 13,311.05 (-0.54 per cent) | +8.37 per cent | -10.39 per cent |
| Europe (at 5.30am ET) |
|||
| UK FTSE | 6,142.64 (+0.28 per cent) | +9.06 per cent | -10.67 per cent |
| German DAX | 9,760.45 (+0.70 per cent) | +9.92 per cent | -15.73 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,071.91 (-1.15 per cent) | +3.65 per cent | -13.17 per cent |
| Japan Nikkei | 16,642.20 (-0.84 per cent) | +3.46 per cent | -11.43 per cent |
| Other Data (at 6.30am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 40.36 (+1.59 per cent) |
37.08 (+1.79 per cent) |
1255.80 (-0.56 per cent) |
U$0.7474 |
| Aus. Dollar |
|||
| U$0.7490 | |||
IMF warns of “economic derailment”
The International Monetary Fund has issued a warning that the world faces an “economic derailment” and needs urgent action. Deputy director David Lipton was speaking at the National Association for Business Economics in Washington Tuesday and warned of a “weakening baseline” for the global economy.
The IMF’s forecast for global growth is currently 3.4 per cent but it has said it is likely to reduce that when it updates it outlook next month. Mr Lipton said that urgent action is needed to boost the global economy as we are at a “delicate juncture.”
Big US banks to launch instant mobile payments
A group of America’s big banks are to launch instant mobile payments to allow smartphone and tablet to conduct transactions securely. While PayPal and others already offer similar products, this innovation will be bank-to-bank payments without a third party. The banks involved include JP Morgan Chase, Wells Fargo Bank of America and Bancorp; they jointly own a system called clearXchange.
