Connect with us

Business

US stocks tumble amid fears of market correction – BBC News

Published

 on


A US trader

Getty Images

US markets have tumbled amid growing concerns about China’s financial system and the impact of coronavirus on the global economy.

On Wednesday, the Dow Jones index lost almost 800 points to 33,816.92 before regaining ground.

There were similar falls in Europe, with the Germany’s Dax index losing 2.3%, and France’s Cac 40 down 1.7%.

One analyst called it “a classic flight to safety”, with Wall Street seeing its worst day since May.

But US stocks are still up more than 12% this year and some analysts played down fears of a correction ahead.

Monday’s sell-off was primarily driven by concerns that Evergrande – one of China’s biggest property developers – is struggling to repay around $300bn of debts.

Regulators in China warned it could spark broader risks to the country’s financial system. And investors fear this could hit big banks exposed to Evergrande and companies like it, causing contagion in global markets.

‘Overspill’

“The fear of an Evergrande bankruptcy appears to be leading to concern about China’s very own Lehman [Brothers] moment, and a big overspill across the region,” said Michael Hewson of CMC Markets.

Investors are also nervous that the US Federal Reserve, which meets on Tuesday and Wednesday, will confirm plans to pare back its support for the US economy this year.

Global stocks have rallied as economies have reopened and central banks have provided trillions of dollars in support to boost growth.

But there are concerns there could be a pull-back, if support is taken away at a time when the Delta variant is starting to drag on the recovery.

Strategists at Morgan Stanley said they expected a 10% correction in America’s S&P 500 index as the Fed starts to unwind its support. They added that signs of a stalling recovery could deepen that fall to 20%.

‘Signal from the noise’

However, other analysts played down fears of a rout, noting that September is typically a bad months for stocks.

“Overall, September continues to live up to its bad reputation as historically the weakest month of the year. But that doesn’t mean it can’t rebound,” said JJ Kinahan, chief market strategist at TD Ameritrade.

And Lindsey Bell of Ally Invest said any pullback may be short-lived.

“Much of investing is about sorting through what’s signal and what’s noise,” she said. “While there is concern about the Evergrande situation infecting global markets, for the long-term investor, this situation may just be noise.”

Adblock test (Why?)



Source link

Continue Reading

Business

B.C. Children's Hospital reports troubling influx of kids with colds and flu – Vancouver Sun

Published

 on


Health officials say a surge in respiratory syncytial virus is happening earlier than normal this year.

Article content

B.C. Children’s Hospital reported Wednesday a spike in non-COVID-19 respiratory viral illnesses, such as colds and flus in children.

Advertisement

Article content

That means the emergency room has been busier than normal and long waiting times can be expected.

Thirty per cent of all cases in the hospital’s emergency department in the past month have been children with respiratory illnesses, according to Dr. Claire Seaton, a pediatrician at B.C. Children’s Hospital.

Rates of severe infection caused by COVID-19 remains low and overall only two per cent of people hospitalized in B.C. are under the age of 19.

“That hasn’t changed but what has changed is we are seeing a lot of other viruses, including respiratory syncytial virus, and parainfluenza, along with some of the other common cold viruses.”

Respiratory syncytial virus, or RSV, is a common virus that causes infections of the lungs and respiratory tract, and most children have been infected with the virus by age two. RSV symptoms are mild in healthy children and adults but the virus can cause severe infection in young infants, especially those born prematurely, or young children who have heart of lung disease.

Advertisement

Article content

Seaton said they didn’t see many children with colds or flus last year, so they are worried it’s going to get a lot busier in the emergency department because of the RSV surge.

It is not unusual to see a spike in cold and flu viruses after kids go back to school in September and October but this year the kids may have reduced immunity to these common illnesses because it just wasn’t around last year.

Public health measures such as wearing masks, keeping a physical distance, washing hands, and getting a flu vaccine can help to keep the kids safe, she said.

Part of the reason for the surge at B.C. Children’s may be because parents are worried their child has COVID-19 so they take them to the emergency room.

Seaton said if a child has a cough or the sniffles then it’s best to keep them home from school or take them to get a COVID test , but it’s not always necessary to go to the emergency room.

Advertisement

Article content

“I think it’s important to realize that the viral surge has already increased hospitalization rates in other parts of Canada,” she said. “So the RSV surge, which normally happens in November, is happening earlier this year … and we are starting to see those cases here.”

If parents are worried about their child’s illness they can check symptoms on the B.C. Children’s Hospital website.

“For respiratory illness, you should take your baby or young child to an emergency department if they have trouble breathing, significant problems with breathing or lips that look blue, and if your baby can’t suck or drink or feed very well,” she said, adding infants younger than three months with a fever should also be brought in to the ER.

Doctors and health experts are recommending that children six months and older get a flu vaccine this year, especially because of the potential for reduced immunity.

“Last year, the rates for RSV infection were very low or basically non-existent so we have a whole year’s worth of children who did not get those viruses so their natural immunity is potentially lower,” she said.

ticrawford@postmedia.com


Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday by subscribing to our Sunrise newsletter here .


Advertisement

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Adblock test (Why?)



Source link

Continue Reading

Business

Canada competition watchdog may have to rely more on litigation – top official

Published

 on

 Competition Bureau Canada watchdog may have to rely more on litigation after its proposed veto of a takeover was overturned, and this could make life harder for companies seeking to merge, the agency head said on Wednesday.

Matthew Boswell, commissioner of competition, noted his bureau had tried this year to block western Canadian oil and gas waste firm Secure Energy Services Inc from buying rival Tervita Corp.

Secure then turned to the independent Competition Tribunal, which denied the bureau’s injunction and underscored “the high bar that needs to be met to prevent mergers … that we allege are anti-competitive,” he said.

The tribunal, he said, had acted so quickly that the bureau had not had time to present all its evidence, raising valid questions about the state of competition laws in Canada.

“This decision has significant implications for how we conduct future merger reviews, particularly in cases where there are competition concerns,” Boswell said in a speech to the Canadian Bar Association.

“This may mean that we must pursue a litigation-focused approach that is costly and less predictable for merging parties,” he added.

Secure relied on the so-called efficiencies defense, which is unique to Canada. Boswell said this procedure allowed the tribunal to allow an anti-competitive merger to proceed if the transaction was deemed to produce efficiency gains that were greater than its anti-competitive effects.

“The efficiencies defense raises significant practical

challenges for the Bureau to estimate and measure anti-competitive harm,” he said. “(We should) ask ourselves whether our competition laws are really working in the best interest of all Canadians.”

The bureau is an independent law enforcement agency set up to ensure fair competition. It investigates price fixing, bid-rigging and mergers, among other matters.

 

(Reporting by David Ljunggren; Editing by Cynthia Osterman)

Continue Reading

Business

Canadian home price growth slows to near standstill in September

Published

 on

Canadian home prices barely rose in September from August as a recent slowdown in housing sales weighed, data showed on Wednesday.

The Teranet-National Bank Composite House Price Index, which tracks repeat sales of single-family homes in 11 major Canadian markets, rose 0.1% in September from August, marking the fourth consecutive month in which the monthly price increase was lower than the previous month.

“The slowdown in price growth can be linked to the slowdown in housing sales reported in recent months by the Canadian Real Estate Association,” Daren King, an economist at National Bank of Canada, said in a statement.

Eight of the 11 major markets rose, led by a 1% gain for Winnipeg, while prices were stable in Montreal and fell in Vancouver as well as in Ottawa-Gatineau. It was the first time in seven months that gains were not seen in all 11 regions.

On an annual basis, the index was up 17.3%, decelerating after it notched record annual growth in August. It was paced by a 31.7% gain in Halifax and a 28.0% gain in Hamilton.

 

(Reporting by Fergal Smith; Editing by Steve Orlofsky)

Continue Reading

Trending