Hong Kong (AFP) - The euro sank to an 11-year low Monday but Asian equities largely recovered from early losses after an anti-austerity party won Greece's election, throwing its international bailout into doubt and raising fears it could leave the eurozone.
OTTAWA — In an environment of low-for-longer interest rates, and global economic uncertainty, the persistent concern of Canada’s monetary policymakers remains in its own backyard: household debt.
Even so, the Bank of Canada continues to be focused on other major risks to the country’s economy and financial system, as well as likely to be caused by external events — such as stresses in emerging economies, financial concerns in the eurozone and possible sharp increases in long-term interest rates.
Hong Kong (AFP) - Tokyo's stock market clocked up a ninth straight gain Wednesday thanks to a weaker yen while Shanghai jumped for a seventh session as investors bet on China unveiling more economy-boosting measures.
CALGARY – As benchmark oil prices tumbled to new 11-year lows on Monday, a new report painted a grim picture of the outlook for energy prices next year and 2017.
Scotiabank Economics said that while other commodities are set to rebound in 2016, West Texas Intermediate oil prices would average “no more than US$40-45 per barrel for 2016 and US$45-50 for 2017.”
“I think 2016 will start off very low, below $40, and could be as low as $30 in the first quarter,” vice-president economics and commodity markets specialist Patricia Mohr said in an interview.
Mark O'Byrne submits:
The euro, global equities and bonds in peripheral Eurozone countries are all lower this morning on heightened concerns about the debt crisis in the Eurozone. The euro has fallen against all currencies and is now at a record low against gold at EUR 1,080.21/oz. Silver is lower against most currencies but is higher against the Australian dollar and the euro ( EUR 24.80/oz) (click charts to expand).
Money Morning submits: By Kerri Shannon The Eurozone debt crisis and U.S. economic policy continue to draw speculation over how these countries will overcome growing mountains of debt - and how the incessant borrowing will affect the euro and U.S. dollar.
And the hits keep on coming. Shortly after every bank slashed global growth forecasts (with markets to follow) following the Brexit outcome, which virtually every sellside strategist is confident will unleash a modest recession in the UK in 2017, moments ago Bank of America released its latest global macro forecast., which was summarized as follows by Bloomberg.
Brussels (AFP) - The eurozone slipped into deflationary territory in December for the first time since the height of the financial crisis in 2009, EU figures showed Wednesday, challenging the ECB to take action to avert a new economic crisis in Europe.
Oil extended losses below $60 a barrel in New York and declined to a five-year low as the International Energy Agency cut its 2015 demand forecast for the fourth time in five months. Brent also dropped to the lowest in five years.