Net foreign direct investment (FDI) stocks held in the rest of the world by investors resident in the EU amounted to €8 589 billion (bn) at the end of 2020, down by 5% compared with the end of 2019. Meanwhile, investment stocks held by the rest of the world in the EU increased to €7 317 bn at the end of 2020 (+2%). Consequently, the EUˈs net investment position vis-à-vis the rest of the world was lower than a year earlier i.e. €1 272 bn at the end of 2020 compared with €1 907 bn at the end of 2019 (-€635 million, -33%).
This information comes from data on foreign direct investments published by Eurostat today.
Special Purpose Entities (SPEs) resident in the EU continued to play a significant role in FDI, albeit a less prominent one than a year earlier. At the end of 2020 they accounted for 40% of the total EU FDI stocks held abroad and for 49% of the FDI stocks held by the rest of the world in the EU, compared with 50% and 59% respectively in 2019.
USA and the UK: by far the main FDI partners
At the end of 2020, the United States absorbed 24% of the total FDI stocks held by the EU in the rest of the world (€2 090 bn), closely followed by the United Kingdom (€1 869 bn, 22%). They were far ahead of Switzerland (€922 bn, 11%), Canada (€297 bn, 3%), Russia (€279 bn, 3%), Brazil (€263 bn, 3%) and Singapore (€256 bn, 3%).
In the reverse direction, the United States’ direct investors accounted for almost a third (€2 317 bn, 32%) of the total FDI stocks held by the rest of the world in the EU at the end of 2020, followed by the United Kingdom (€1 247 bn, 17%). They were followed by those from Switzerland (€691 bn, 9%), Bermuda (€458 bn, 6%), Jersey (€277 bn, 4%), Canada (€241 bn, 3%), Japan (€222 bn, 3%) and the Cayman Islands (€185 bn, 3%).
FDI stocks help to quantify the impact of globalisation and measure longstanding economic links between countries (according to immediate counterpart criteria). They provide an indication of the relative importance of a country’s economic presence abroad, or that of foreign partners in the reporting entity, measured in terms of FDI capital.
Eurostat website section dedicated to foreign direct investment statistics
Eurostat database on balance of payments and EU direct investments
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
