Tags: oil | stocks | Europe | China

Oil Slide Roils Emerging Markets as Stocks Fall Anew

Monday, 15 Dec 2014 03:20 PM

Oil prices plumbed 5-1/2-year lows on Monday, pulling down emerging market assets and boosting demand for the safe-haven yen, while global equity markets slipped further after last week's rout amid nagging worries about worldwide growth.

Brent crude hit a five-year low near $60 a barrel before paring losses, settling down 79 cents at $61.06. U.S. crude for January settled down $1.90 at $55.91, a price last seen in May 2009.

Stocks retreated as crude oil prices gave up early gains after the Organization of the Petroleum Exporting Countries restated its determination not to cut output despite a global energy glut.

Major European stock indexes fell more than 2 percent, while the Dow and S&P 500 fell about 1 percent before paring losses in choppy trade.

The ruble hit record lows and Russian assets plunged on concern about possible new U.S. sanctions over Ukraine, weak oil prices and one-sided bets that the currency would extend its slide.

The yield rise on U.S. Treasuries was limited by persistent concerns about weakening growth and inflation globally. U.S. stocks dipped even as U.S. manufacturing output posted its biggest gain in nine months in November as production expanded across the board, pointing to underlying U.S. economic strength.

"The continued free-fall in crude is the main thing here," said Uri Landesman, president at Platinum Partners in New York.

Landesman said the benchmark S&P 500 could test 1,750.

The Dow Jones industrial average fell 56.48 points, or 0.33 percent, to 17,224.35. The S&P 500 slid 7.73 points, or 0.39 percent, to 1,994.6 and the Nasdaq Composite lost 36.98 points, or 0.79 percent, to 4,616.62.

In Europe, the FTSEurofirst 300 index of top regional shares fell 2.35 percent to close at 1,290.65 while MSCI's all-country world index, which measures stock performance in 45 countries, fell 1.06 percent to 404.40.

The broad STOXX 600 fell 2.2 percent in Europe, and has dropped 7.9 percent over the past six sessions, wiping out about $710 billion in market capitalization.

"The drop in oil would normally be good news for the European economy, but in this case it's actually bad news because it seriously raises the risk of deflation," said Christian Jimenez, fund manager and president of Diamant Bleu Gestion in Paris.

MSCI's emerging markets index fell 1.7 percent.

Growth worries have supported bets the Federal Reserve might consider keeping its pledge to leave U.S. short-term interest rates near zero for a "considerable period" in its latest policy statement at the end of a two-day meeting on Wednesday.

The price on benchmark 10-year Treasury notes fell 3/32, pushing its yield up to 2.1165 percent.

The euro was last down 0.2 percent against the dollar at $1.2435. The dollar was 0.87 percent lower against the yen at 117.74 yen.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Markets
Oil prices plumbed 5-1/2-year lows on Monday, pulling down emerging market assets and boosting demand for the safe-haven yen, while global equity markets slipped further after last week's rout amid nagging worries about worldwide growth.
oil, stocks, Europe, China
456
2014-20-15
Monday, 15 Dec 2014 03:20 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved