WORLDWIDE : HEADLINES
China’s August forex reserves rise to $3.165 trillion
BEIJING – China’s foreign exchange reserves rose less than expected in August amid persistent weakness in the U.S. dollar and solid gains in the yuan as China’s economy recovers steadily.
The country’s foreign exchange reserves – the world’s largest – rose $10.2 billion in August to $3.165 trillion, central bank data showed on Monday.
Economists polled by Reuters had expected the country’s reserves would climb by $21.61 billion.
Foreign inflows into Chinese stocks and bonds also have been steadily rising as investors bet on an economic rebound.
Full coverage: REUTERS
World shares edge higher after tech rout, oil slides
LONDON/SYDNEY – World shares rose slightly on Monday after losing $2.3 trillion in the last two sessions in a technology stocks led rout as investors reassessed soaring valuations when the global economy is in a coronavirus-induced recession while oil prices dropped.
European stocks, which have fewer technology stocks compared to the United States, started the week in the black driven by a 1.2% gain in Germany’s Dax and London’s export-heavy FTSE 100
UK stocks, meanwhile, were helped by a falling pound with Brexit talks plunging into crisis following Britain’s threat to override its EU divorce deal. Sterling fell around half a percent against the dollar and euro on Monday.
Full coverage: REUTERS
WORLDWIDE : FINANCE / ECONOMY / STOCK MARKET
European shares kick of week on strong footing, vaccine progress eyed
European shares bounced on Monday after a Wall Street-led rout in technology stocks kept global sentiment subdued in the previous week, with investors keeping a close watch on COVID-19 vaccine developments.
Australia expects to receive its first batches of a potential COVID-19 vaccine in January after a deal was struck with CSL (CSL.AX) to manufacture two vaccines, one developed by rival AstraZeneca (AZN.L) and Oxford University, and another in CSL’s own labs with the University of Queensland.
AstraZeneca rose 1.6%, with the European healthcare sector index .SXDP jumping 1.1%.
Sanofi (SASY.PA) rose 1% after it said a coronavirus vaccine it is developing with Britain’s GlaxoSmithKline (GSK.L) was likely to be priced at less than 10 euros.
Full coverage: REUTERS
Euro-dollar steadies as rally pauses ahead of ECB meeting
LONDON – The euro-dollar exchange rate steadied above $1.18 on Monday as traders took stock of the latest U.S. jobs data and prepared for the European Central Bank meeting on Thursday to see if policymakers will introduce yet more stimulus.
The dollar has tumbled to more than two-year lows against the euro at the start of September as investors fretted about the strength of a U.S. economic recovery and bet U.S. interest rates would stay low for longer just as policymakers had introduced a significant recovery fund in Europe.
But the greenback has steadied in recent sessions, especially after the euro’s brief flirtation with the $1.20 level was followed by selling of the single currency.
Full coverage: REUTERS
IEA sees oil market stuck between no major slowdown but stalled recovery
LONDON – The global economy is likely not headed for any major slowdown due to COVID-19 but piled-up storage and uncertainty over China’s oil demand cloud oil markets’ recovery, an official with International Energy Agency (IEA) said.
Keisuke Sadamori, IEA director for energy markets and security, told Reuters the outlook for oil was in the midst of either a second wave or a steady first wave of the coronavirus.
“There is an enormous amount of uncertainty, but we don’t expect any additional serious slowdown in the coming months.”
“Even though (the market is) not expecting real robust growth coming back soon, the view on demand is more stable compared with three months ago,” he said in an interview.
Crude prices LCOc1 CLc1 plunged in spring to historic lows as the pandemic’s lockdowns crushed demand, and have pared losses but remained stuck near $40 a barrel.
Full coverage: REUTERS
