Subscribe to RSS

Market Overview:  Global stocks fall as oil decline resumes

US stocks closed sharply lower on Monday as oil prices resumed the decline after Friday’s rebound. The dollar weakened, live dollar index data indicate the ICE US Dollar Index, a measure of the dollar’s value against a basket of six major currencies, was down 0.2% to 99.369. The Dow Jones Industrial Average ended 1.3% lower at 15885.22. Caterpillar was the worst performer among the Dow components, falling 5%. The S&P 500 lost 1.6% with all 10 main finishing in the red led by energy and materials stocks, down 4.52% and 3.26% respectively. Shares of Exxon Mobil sank 3.4%, Chevron dropped 3.2%. The continued slump in stock markets after both stock market indexes reversed the first weekly gains from previous two sessions’ rallies has spurred concerns about possible recession in US. JP Morgan analysts warned that the risk of economic downturn is not adequately priced in, pointing that forward price-to-earnings ratios are still higher than they usually are during a recession. At the same time Goldman Sachs analysts note that the risks of economic slowdown are limited and they expect a 2% GDP growth this year. Today Federal Reserve’s two-day policy meeting begins, and investors will be watching closely for the central bank’s assessment of US and global economy. At 15:00 CET today November Case-Shiller Composite-20 Home Price Index will be released. The tentative outlook is positive. At 15:45 CET January Flash Services PMI will be published by Markit. And at 16:00 CET January Consumer Confidence index will be released by Consumer Board. The tentative outlook is positive.

European stocks retreated on Monday as sliding oil prices provided no support for sustained investor optimism. The euro strengthened against the dollar despite a disappointing reading of Germany’s Ifo business sentiment index for January. The Stoxx Europe 600 closed down 0. 6% erasing early gains. Germany’s DAX 30 fell 0.3% to 9,736.15, France’s CAC 40 and UK’s FTSE 100 indexes dropped 0.4% and 0.6% respectively. Energy shares were hit hard as crude-oil prices gave back last week’s gains. Deep-water drilling company Seadrill Ltd. sank 8.9%, Norway’s Statoil dropped 3% and BP lost 0.7%. According to Ifo Institute’s survey business sentiment among Germany’s manufacturers fell to a 12-month low due to a poorer export outlook. The unexpected deterioration of business sentiment of euro-zone’s largest economy increases the likelihood of further stimulus by the European Central Bank in spring. Today at 12:45 CET Bank of England Governor Carney will testify on financial stability in London. Tomorrow at 8:00 CET February Gfk Consumer Confidence Index will be released in Germany. No important economic data are expected today in euro-zone.

Nikkei fell 2.4% today as continued slide in oil prices spurred concerns about global slowdown and yen strengthened on increased safe haven demand. Asian shares were lower today and China’s stocks fell sharply after renewed selloff, the CSI300 index of the largest listed companies in Shanghai and Shenzhen exchanges fell 6.0%.

Oil futures prices continued the decline today, reversing the gains from rebound that started last week as falling freight data from China added to concerns about global economic slowdown. China’s rail freight volume dropped 11.9% in 2015 from a year ago after a 3.9% decline in 2014. At the same time Iraq may raise output further this year, and Saudi national oil company Aramco is continuing to invest in oil and gas production capacity despite low prices. These developments point to expected lower demand growth for crude oil while additional supply will add to existing global glut.

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Free $30 Earn Trade-able Trading Credit Bonus – Forex Time

Free $30 Earn Trade-able Trading Credit Bonus – Forex Time(0)

Switch to ForexTime and Free $30 Earn Trade-able Trading Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and Free Earn $30 Trade-able Trading Credit Bonus as a thank you for switching. Link:  Receive $30 Tradeable Credit Bonus Link:  Loyalty Cashback Promotions Link:  FX

$100 Risk Free Money on your Live Account – FidelisCM

$100 Risk Free Money on your Live Account – FidelisCM(0)

Get $100 Free Risk Forex Money on your Live Account There is no better way to trust more. Sign up for $100  No Deposit Bonus from FidelisCM Live Account and start forex trading now. Link: $100 Free No Deposit Forex Bonus Link: 200% Margin Bonus on all Deposit Available to: New and Existing clients Ending

$14000 New Accounts Bonus on Initial Deposits – AvaTrade

$14000 New Accounts Bonus on Initial Deposits – AvaTrade(0)

Up to $14000 New Accounts Bonus on your Initial Deposits to all new trading account. Open a new live trading account and verify it Make a deposit of no less than $100 and request the New Accounts Bonus. Link:  100% Bonus to Your First Deposit Link:  30% Sign-up Bonus on your Deposit Link:  Up to

Up to 200% Withdrawable Cashback Bonus – Forex Time

Up to 200% Withdrawable Cashback Bonus – Forex Time(0)

Always aims for profitable promotions for FXTM Customer, this time they have come up with a 200% Cashback Rebate Bonus promo which enables traders to earn up to 10,000 USD withdraw able Cashback bonus. Link:  Receive $30 Tradeable Credit Bonus Link:  FX Circuits Live Trading Contest Link:  Demo Forex Trading Contest Link:  Loyalty Cashback Promotions

$2500 Forex No Deposit Free Startup Bonus – InstaForex

$2500 Forex No Deposit Free Startup Bonus – InstaForex(0)

$2500 Free No Deposit Forex Bonus to Start Risk Forex Trading on InstaForex.com‎. With $2500 Free Forex Bonus you will be able to estimate our unsurpassed quality of order execution in live trading conditions with no risk and personal investments. Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus

100% Special Bonus Offer on a Deposit – World Forex

100% Special Bonus Offer on a Deposit – World Forex(0)

Get a 100% Special Bonus Offer on a Deposit plus for replenishment account And a free VPS server for every account replenishment in the amount of 100 USD. Link:  $10 No Deposit Forex Special Bonus Link:  Deposit $5 Receive $20 Special Bonus Link:  100% Forex Special Deposit Bonus Available to: All new trading account Ending

50 USD Forex No Deposit Bitcoin Bonus offer – UFX

50 USD Forex No Deposit Bitcoin Bonus offer – UFX(0)

$50 Forex No Deposit Bonus on their real account. This initial $50 Forex No Deposit Bonus offer is intended to allow new users of the platform the opportunity to test the real trading account. Link:  $50 No Deposit Bonus Promotion Link:  $50 Free No Deposit Bitcoin Bonus Link:  100% Real Money CashBack Promotion Available to:

Deposit $5 Receive $20 Forex Special Bonus – WForex

Deposit $5 Receive $20 Forex Special Bonus – WForex(0)

$10 Forex No Deposit Free Bonus or Deposit $5 Receive $20 Special Bonus Forex to all World Forex New Clients only. Trade with World Forex Broker Get 20$ or 10$ on your choice Link:  $10 Forex No Deposit Free Bonus Link:  Deposit $5 Receive $20 Special Bonus Available to: All new trading account Ending Date:

25 USD Receive Forex Cash Bonus for Free – Xtrade

25 USD Receive Forex Cash Bonus for Free – Xtrade(0)

$25 Receive Forex Cash Bonus for Free No deposit required to all Xtrade New Clients only and 60% Forex Deposit Bonus on your first time deposit to all new live trading account Link:  Up to $5000 No Deposit Free Bonus Link:  $500 Forex No Deposit Free Bonus Link:  $1000 Forex No Deposit Free Bonus Link: 

50% Deposit Bonus for Every Deposit – Fort Financial

50% Deposit Bonus for Every Deposit – Fort Financial(0)

Up to 50% Deposit Bonus for Every Deposit. Open and fund an account at FortFS.com and receive an exclusive 50% bonus on top of your initial investment up to $1000. Link: Up to 50% Bonus of Every Deposit Link: $5 Forex No Deposit Welcome Bonus Link: 15% Support Margin Bonus Available to: New and Existing

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories