Equity markets fall on concerns about global growth

Equity markets fall on concerns about global growth
Updated 18 December 2015

Equity markets fall on concerns about global growth

Equity markets fall on concerns about global growth

NEW YORK: Global equity markets fell on Friday, pulled lower by concerns about slumping crude oil prices, while the dollar slipped against the yen on views the Bank of Japan may not ease policy as much as expected.
Investors were cautious in the wake of the euphoria that followed the US Federal Reserve’s first interest rate hike in almost a decade earlier in the week.
The yen gained after the BoJ merely tweaked its monthly asset-purchase program, putting a pause in the dollar’s rise in recent months on views that the Fed’s likely decision to raise interest rates and the BoJ’s path of more potential stimulus would drive investment into higher-yielding US assets.
The Fed raised rates on Wednesday for the first time in almost a decade.
“The BoJ’s move shows a weak hand,” said Jens Nordvig, global head of FX strategy at Nomura in New York.
“It suggests the BoJ is out of ammunition, and will not be able to deliver anything meaningful going forward,” he said.
Equities suffered from fatigue after markets had risen in anticipation of the Fed move, while the price of oil was driving investor sentiment on concerns over global growth and a growing supply surplus.
“We had a couple of strong days as a result of the Fed,” said Andrew Wilkinson, chief market strategist at Interactive Brokers LLC in Greenwich, Connecticut.
“The market is getting sucked into a fear trade,” he said. It’s really oil — is it a glut or a global slowdown? But I don’t think it’s symbolizing a slowdown in the global economy.”
MSCI’s all-country world stock index fell 0.74 percent, while the FTSEurofirst 300 index of leading European share dropped 0.98 percent to 1,420.038.
On Wall Street, the Dow Jones industrial average fell 186.7 points, or 1.07 percent, to 17,309.14.
The S&P 500 slid 15.45 points, or 0.76 percent, to 2,026.44 and the Nasdaq Composite lost 21.57 points, or 0.43 percent, to 4,980.99.
Treasury prices rose. The benchmark 10-year US Treasury note rose 9/32 in price to yield 2.2058 percent.


China was largest recipient of FDI in 2020 — Report

China was largest recipient of FDI in 2020 — Report
Updated 27 min ago

China was largest recipient of FDI in 2020 — Report

China was largest recipient of FDI in 2020 — Report
China was the largest recipient of foreign direct investment in 2020 as the coronavirus outbreak spread across the world during the course of the year, with the Chinese economy having brought in $163 billion in inflows.
China’s $163 billion in inflows last year, compared to $134 billion attracted by the United States, the United Nations Conference on Trade and Development (UNCTAD) said in a report released on Sunday.
In 2019, the United States had received $251 billion in inflows and China received $140 billion.
China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-striken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic rages unabated.
China’s gross domestic product grew 2.3% in 2020, official data showed last week, making China the only major economy in the world to avoid a contraction last year.
The world’s second-largest economy has surprised many with the speed of its recovery from the coronavirus jolt, especially as policymakers have also had to navigate tense US-China relations on trade and other fronts.
Overall, global FDI had collapsed in 2020, falling by 42% to an estimated $859 billion, from $1.5 trillion in 2019, according to the UNCTAD report.
“FDI finished 2020 more than 30% below the trough after the global financial crisis in 2009,” the UNCTAD said on Sunday.
FDI flows fell by 37% in Latin American and the Caribbean, by 18% in Africa, and by 4% in developing Asia, the report added.
East Asia accounted for a third of global FDI in 2020, while FDI flows to developed countries fell by 69%.