Action Insight · China · Emerging Markets · Europe · Market News of the day · Markets Data · North America

Market News Update

 

  • China could run its biggest budget deficit in perhaps half a century next year as leadersturn to government spending to arrest the slowdown in the economy.
  • Growth is about to hit a quarter-century low of 7% and deflationary pressures still persist, despite a year of interest rates cuts, fund injections and easier loan requirements.
  • According to policy advisers, China will likely increase its budget deficit to about 3% of GDP in 2016 from a target of 2.3% this year to help cushion against the possible impact on the economy from structural reforms.

 

  • Sustained pressure on crude prices is having traders turn cautious, with renewed selling being felt in the equities markets.
  • Weekly data from the American Petroleum Institute showed a rise of 2.9M barrels last week, defying expectations of no change and rekindling fears of a supply glut.
  • The U.S. Energy Department issues its official figures this morning at 10:30 a.m. ET.
  • Brent -1.9% to 37.09/bbl; WTI -2.6% to 36.90/bbl.

 

  • Japan +0.27%.
  • Hong Kong -0.53%.
  • China +0.26%.
  • India -0.46%.
  • London -0.37%.
  • Paris -0.12%.
  • Frankfurt +0.01%.

 

  • The U.S. stock market took investors for a wild ride in 2015, but in the end it was a trip to nowhere.
  • Equities began the year with a slow start as investors worried about falling crude prices, flat earnings growth and when the Fed would begin raising rates. By May, stocks were hitting new highs, but the market didn’t stay there for long.
  • Worries about slowing Chinese growth in the summer gave reason for the Fed to pause and for traders to fret, sending U.S. indexes into a correction, although the last few months they’ve marked a return to their initial starting point.

 

  • U.S. District Judge Robert Sweet has certified two shareholder class actions accusingFacebook (NASDAQ:FB) of hiding concerns about its growth forecasts prior to its initial public offering in May 2012.
  • The ruling means retail and institutional investors who assert they lost money by purchasing shares at inflated prices may pursue their claims as groups.
  • Facebook made its market debut on May 18, 2012 at $38 a share, but its stock price fell to $17.55 on Sept. 4, 2012 and stayed below the IPO price for more than a year.

 

  • KaloBios Pharmaceuticals (NASDAQ:KBIO), the biotechnology company formerly led by Martin Shkreli, has filed for Chapter 11 bankruptcy, listing both its assets and liabilities in the range of $1M-$10M.
  • The move comes on the heels of KaloBios’ appeal of the Nasdaq decision to delist its shares, as well as the firm’s failure to file a quarterly financial report.

 

  • Global economic growth will be “disappointing and uneven” next year, the head of the International Monetary Fund said in a guest article for German newspaper Handelsblatt.
  • “In many countries the financial sector still has weaknesses and in emerging markets the financial risks are increasing,” IMF Managing Director Christine Lagarde declared.
  • She added that low productivity, aging populations, a decline in raw materials, and the effects of the global financial crisis were putting the brakes on growth, which has weakened the medium-term prospects.

 

 

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