Morning Briefing: Global stocks mixed on oil, ECB

Morning Briefing: Global stocks mixed on oil, ECB

Morning Briefing: Global stocks mixed on oil, ECB Global stocks mixed on oil, ECB
Oil prices are continuing to decline Thursday with benchmark Brent dropping below $28 and slipping below US crude again.  Lower oil prices are having a circular effect on Middle East economies as lower revenues from oil slow down other industries, reducing demand for oil, exacerbating declining prices. $20 a barrel is an increasing bet.

Asian markets closed with losses, as a sell-off gathered pace during the session. Shanghai and Tokyo led the decline.

In Europe it’s a different story so far as investors hold fire on a sell-off ahead of the year’s first meeting of the European Central Bank. There will be a press conference at 8.30am ET and the markets are expecting some confidence-boosting words from ECB president Mario Draghi. Failure to deliver could mean a slump for Europe’s stocks later in the session.

Wall Street and Toronto are expected to open lower.
  Latest 1 month ago 1 year ago
North America (previous session)
US Dow Jones 15,766.74 (-1.56 per cent) -8.61 per cent -10.18 per cent
TSX Composite 11,843.11 (-1.33 per cent) -9.14 per cent -18.66 per cent
Europe (at 5.30am ET)
UK FTSE 5,695.14 (+0.38 per cent) -5.63 per cent -15.35 per cent
German DAX 9,435.26 (+0.46 per cent) -10.12 per cent -8.39 per cent
Asia (at close)
China CSI 300 3,081.35 (-2.93 per cent) -20.30 per cent -13.17 per cent
Japan Nikkei 16,017.26 (-2.43 per cent) -15.32 per cent -7.31 per cent
Other Data (at 5.30am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
(-0.25 per cent)
(-0.53 per cent)
(-0.80 per cent)
Aus. Dollar

Global recession could be incoming says Citi
A new global growth forecast from Citigroup makes for sombre reading this morning. It says that pressures from deflation will reduce growth to 2.7 per cent, down from the 2.8 per cent it forecast in its previous report. Willem Buiter, Citi’s chief economist warned clients: "Risks to our growth forecasts probably remain to the downside, with increasing risks of global recession.”
Canadian energy companies could cut costs by 25 per cent this year
The Bank of Canada estimates that the country’s energy companies could slash costs by 25 per cent in 2016 as pressure from lower oil prices intensifies. How they will achieve that will be a challenge as many have already laid off workers and cut back on project investment. The BoC’s Monetary Policy Report noted: “Many firms indicate that neither they nor their suppliers are able to generate additional substantial cost savings or productivity increases in the short term.”
“Massive undertaking” for China says IMF chief
The head of the IMF says that structural reform for China will be a “massive undertaking.” Reuters reports that Christine Lagarde poured doubt on China’s ability to achieve the reform it claims it will make in entry to the IMF’s special drawing rights basket when she spoke at the World Economic Forum. 

More market talk: