Global shares lift with Chinese stock market deal but political unrest pushes oil higher
Global stocks have reacted to a new deal that makes it easier for investors to access China’s stock market. The much-awaited link between the Shanghai and Hong Kong markets has been formally announced as starting from next Monday (Nov. 17). Chinese and Hong Kong shares gained along with most major Asian markets, although Japan ended lower. Positive M&A activity and earnings has added to Europe’s shares so far. Meanwhile oil prices are on the rise after further tension in Ukraine and Libya. US stock futures and gold are trending upwards.
No major data releases due today.
Sotheby’s, US Energy Corp and William Penn are among those reporting today.
Obama calls for stronger links with China
President Obama is in Beijing and has been speaking today at APEC -The Asia-Pacific Economic Cooperation. The President told delegates that it was important that the US and Asia have greater trade links and that the US wants China to do well. The theme of the APEC summit is better co-operation of its members to shape the future and President Obama said that there is more to be done to reduce trade barriers.
FSB seeks to end bank bailouts
The issue of taxpayers bailing out banks that are deemed ‘too big to fair’ could be avoided if a new plan comes to fruition. The Financial Stability Board; made up of regulators from the G20 nations; wants banks to have a buffer of bonds that would cover potential losses. Thirty of the world’s biggest banks would have to implement the buffer if the proposal goes ahead; it is being put to the G20 leaders in Brisbane this week and will then have a period of public consultation early next year. Former Bank of Canada governor Mark Carney, currently at the Bank of England and FSB chairman said: "Once implemented, these agreements will play important roles in enabling globally systemic banks to be resolved (wound down) without recourse to public subsidy and without disruption to the wider financial system."
Moody’s: Global growth downgraded but US, UK and India look better
Credit agency Moody’s has released its Global Economic Outlook for 2015 and reveals a sluggish level of growth for many major economies. The Eurozone, Brazil and Japan have all been downgraded and Russia is expected to enter a marginal recession. Three nations emerge though as being tipped for stronger growth in 2015/16; the US, UK and India are all expected to buck the global trend.
Credit card survey shows fewer penalties for late payers
A new survey by CreditCards.com shows that fewer card operators are punishing those who pay their credit card bills late. Some are not issuing penalties at all and those that are generally making charges at a lower rate. Lenders have been paying more attention to their credit card operations in recent years as profits in the sector have been increasing.