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

Receive $30 Credit Bonus for Trusted  Broker- FXTM

Receive $30 Credit Bonus for Trusted Broker- FXTM(0)

Switch to ForexTime and receive $30 Trading Credit Bonus. Join the hundreds of thousands of traders around the world who have already chosen ForexTime as a broker and receive $30 Trading Credit Bonus as a thank you for switching. Link:  Up to $200 Cash Bonus this December Link:  Receive $30 Tradeable Credit Bonus Link:  FX

15% Support Margin Bonus and $50 Free Bonus – FortFS

15% Support Margin Bonus and $50 Free Bonus – FortFS(0)

15% Support Margin Bonus Plus $50 No Deposit Bonus to all New and Existing Traders. For Every Traders who passed the verification process in their traders room can get the $50 Free Bonus Link:  $50 Forex No Deposit Welcome Bonus Link: Up to 50% Bonus of Every Deposit Link: 15% Support Margin Bonus As from

Get $34 Forex No Deposit Bonus Contest – Xtream Forex

Get $34 Forex No Deposit Bonus Contest – Xtream Forex(0)

Sign-Up and Get $34 Forex No Deposit Bonus Contest Enjoy Forex Trading Without Deposit. Grab your $34 Forex No Deposit Bonus and start your live Forex trading to win big cash prize. Link: $34 Forex No Deposit Bonus Contest Available to: All new clients Forex $50 No Deposit Bonus Contest Duration? Registration is open till

115% Classic Bonus and $30 Welcome Bonus – RoboForex

115% Classic Bonus and $30 Welcome Bonus – RoboForex(0)

Up to 115% Classic Bonus Promotion and 50% Tradable Deposit Bonus to All RoboForex New and existing clients. 50% Tradable bonus from RoboForex is the type of bonus, which is not cancelled when the equity on your account is below the amount of the bonus funds Link:  $30 Welcome Bonus Promotion Link:  50% Tradable Bonus

Receive 25% Free Credit Bonus on your First Deposit – HYCM

Receive 25% Free Credit Bonus on your First Deposit – HYCM(0)

Get your forex trading off to a flying start. Sign up today and receive 25% Free Credit Bonus on your first deposit. The maximum trading credit bonus awarded under this promotion is US$5,000 Link: 25% Free Credit Bonus on your First Deposit Available to: All new clients Bonus Offer: Sign up today and receive 25%

60% Withdrawal Holiday Deposit Bonus – FXCL Markets

60% Withdrawal Holiday Deposit Bonus – FXCL Markets(0)

60% Withdrawal Holiday Deposit Bonus to All new and existing clients. The 60% Withdrawal Holiday  Deposit Bonus limit is $2,000 per trader. Link: 60% Holiday Withdrawal Bonus Available to: All new and existing clients Bonus Offer: 60% Withdrawal Holiday Deposit Bonus to All new and existing clients The bonus limit is $2,000 per trader. The

Up to 250% Exclusive Trading Credit Bonus – InstaForex

Up to 250% Exclusive Trading Credit Bonus – InstaForex(0)

InstaForex Exclusive Bonus Promotions is unparalleled on the market and gives a matchless opportunity to receive a Exclusive Bonus Promotions in the range of 30% to 250%. Making use of any kind of bonus, you can bump up your live trading account balance after depositing. Link:  Get 250% Bonus for First Deposit Link:  $500 Forex

New Promo-Action Free No Deposit Bonus $50 – FortFS

New Promo-Action Free No Deposit Bonus $50 – FortFS(0)

New Promo-Action Free No Deposit Bonus 50 USD to all New and Existing Traders. For Every Traders who passed the verification process in their traders room can get the $50 Free No Deposit Bonus Promotion Link:  $50 Forex No Deposit Welcome Bonus Link:  500 USD cents Forex No Deposit Bonus Link:  Up to 50% Bonus

Get 500 Cent Forex No Deposit Welcome Bonus – FortFs

Get 500 Cent Forex No Deposit Welcome Bonus – FortFs(0)

Get 500 Cent Forex No Deposit Welcome Bonus 2018-2019 to All New Traders. Open a forex real trading account, pass the personal data verification procedure and get the 500 Cent Free Forex Welcome Bonus! Link:  Up to 50% Bonus of Every Deposit Link:  500 Cent Forex No Deposit Bonus Link:  15% Support Margin Bonus Available

Get 100% Trading Bonus Promotion up to 500 USD – XM

Get 100% Trading Bonus Promotion up to 500 USD – XM(0)

XM is running an exclusive 100% forex trading bonus promo up to $500 for new and existing clients. During the promotional period, new and existing clients will be rewarded with 100% forex trading bonus up to $500 on their next deposit until the bonus amount is reached, additionally to the regular XM promo Link:  $30

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