WORLDWIDE : HEADLINES
Britain’s economy racing as lockdown lifts, but outlook has not improved: Reuters poll
LONDON – Britain will expand at its quickest pace in decades this quarter after shrinking at its fastest pace in centuries last quarter, a Reuters poll found, as vast swathes of the economy have reopened following a nationwide shutdown to control the coronavirus.
Despite near-term optimism, almost 85% of respondents, 32 of 38, thought the outlook for the British economy had stayed the same or worsened over the past month, with only six saying it had improved.
The virus has infected almost 15 million people across the world and Britain has the highest death toll in Europe – despite the government forcing businesses to close and citizens to stay home.
Full coverage : REUTERS
Australian banking regulator flags change to dividend freeze, calls for prudence
SYDNEY – Australia’s banking watchdog plans to update a capital return policy that has halted dividend payments from banks due to the coronavirus crisis, flagging flexibility in operations that focuses on the longer-term viability of the financial sector.
In a speech on Wednesday to the Trans-Tasman Business Circle, a business lobby, the Australian Prudential Regulator Authority (APRA) Chairman Wayne Byres said the degree of uncertainty about the local economy was now lower than when it asked banks to consider deferring dividend payouts in April.
While warning that there was “no end in sight” to the health and economic crisis, Byres said capital markets were functioning in an orderly manner and stress-tests indicated the banks were “well-placed” to withstand any major headwinds ahead.
Full coverage : REUTERS
China solar panel output rises 15.7% in first half: industry association
BEIJING – China produced 59 gigawatts (GW) worth of solar panels in the first half of the year, up 15.7% from a year ago, an official with the country’s solar industry association said on Wednesday, with the industry barely affected by the coronavirus outbreak.
Wang Bohua, vice-chairman of the China Photovoltaic Industry Association, told an online briefing that newly installed solar power capacity also inched up 0.9% in the first half, reaching 11.5 GW.
Exports were also relatively robust, he said, with shipments of completed solar modules hitting 27.7 GW from January to May, down 1.8% on the year. Exports over the first half are expected to have reached 33-35 GW.
Full coverage : REUTERS
WORLDWIDE : FINANCE / ECONOMY / STOCK MARKET
Dollar wobbles as traders eye U.S. fiscal stimulus debate
TOKYO – The dollar nursed losses against most currencies in Asian trade on Wednesday, undermined by concern that Republicans and Democrats are struggling to reach consensus on the next round of U.S. economic stimulus measures.
The euro traded near its strongest level in more than a year after European leaders agreed a stimulus plan to fuel recovery from the economic drag caused by the COVID-19 pandemic.
Risk appetite has improved greatly this week as progress in developing vaccines for the novel coronavirus reduced the U.S. dollar’s safe-harbour appeal.
Investors also expect a massive amount of fiscal spending to support growth in major economies but could easily be disappointed if any stimulus falls short of expectations.
Full coverage : REUTERS
Oil prices fall on U.S. inventory build, increasing pandemic fears
SINGAPORE – Oil prices fell on Wednesday as industry data showed a bigger- than-expected inventory build in the United States where coronavirus cases continue to climb, potentially further denting demand in the world’s biggest oil consumer.
Industry group American Petroleum Institute (API) reported U.S. crude inventories rose last week by 7.5 million barrels compared with expectations for a draw of 2.1 million. <API/S>
Brent crude fell 32 cents, or 0.7%, to $44 a barrel by 0156 GMT, and U.S. West Texas Intermediate (WTI) crude dropped 33 cents, or 0.8%, to $41.59.
Oil prices climbed about $1 the previous day, reaching their highest since March 6.
Full coverage : REUTERS
Asia markets to open lower on pandemic worries, shrugging off U.S. equities upswing
NEW YORK – Asia shares were set to open lower on Wednesday after U.S. President Donald Trump’s comments regarding the country’s surge in novel coronavirus cases outweighed a slight rally on Wall Street.
Australian S&P/ASX 200 futures YAPcm1 lost 1.06% in early trading. Japan’s Nikkei 225 futures NKc1 added 0.24%, while Hong Kong’s Hang Seng index futures .HSI HSIc1 lost 0.34%.
E-mini futures for the S&P 500 EScv1 rose 0.13%.
Full coverage : REUTERS
S&P 500 closes slightly higher as stimulus hopes lift cyclical stocks
NEW YORK – The S&P 500 edged higher on Tuesday, as investors rotated into economically sensitive cyclical stocks, optimistic that Washington will deliver a new round of stimulus to sustain the U.S. economic recovery from a pandemic-induced recession.
Financial, industrial and energy stocks gave the biggest boosts to the bellwether S&P 500 and blue-chip Dow as investors pivoted back to cyclicals. The march upward lost steam late in the session, and a drop in tech shares pulled the Nasdaq lower.
The S&P 500 has moved into positive territory year-to-date, up 0.8%. The Nasdaq has gained 19% since Jan. 1, while the Dow remains down 6%.
The S&P 500 is now within 4% of its record closing high reached late in February.
Full coverage : REUTERS
