Breaking News

Volatile oil hits another 12-year nadir, equities battered by growth fears

News Date: 14/1/2016 00:47:10
Update Date: 14/1/2016 01:16:01
Brent prices broke the $30 level for the first time in 12 years, following a similar tumble below that level by U.S. crude on Tuesday. The latest round of decline came about as Japan's Core Machinery Orders plunged 14.4% m/m in November, compared with analysts' expectations of a just 7.3% drop, while Producer Price Index (PPI) also fell by 3.4% m/m in December, much worse that the 0.4% fall expected. The gloomy data spooked investors, raising fears that oil demand could wane considerably in 2016 in a time when markets are filled to the brink with excess supply.

Brent crude futures fell to $29.72 a barrel, a 12-year trough, before last trading at $30.07, down 0.35% for the day, while U.S. crude futures took the premium status again, trading higher at $30.66 a barrel.

Asian equities were mired in red territories, with Japan's Nikkei leading the way with a 3.27% plunge to a 14-week low at 17,130. China's Shanghai index gave up 1.0%, while Australia's lost 1.56%. Korea's investors were disappointed after the central bank held on to its rate policy with no change, with the KOSPI sliding 1.20%. India's Nifty dipped 0.70%.

Wall Street had its worst day in several months, with S&P 500 plumbing a 14-week low at 1,890, down 2.50%. NASDAQ dropped 159 points, or 3.41% to 4,526. Dow Jones lost 364 points, or 2.21% to 16,151.

Investors flocked to safe havens, with the euro touching an 11-month high against sterling at 0.7565. Yen edged up vs. dollar to 117.60. Gold benefited as well, advancing six dollars, or 0.60% to $1,093 an ounce.

A host of U.S. data is awaited today, most notably retail sales for December, forecast to show a 0.1% m/m drop, while PPI is expected to fall 0.2% m/m, both would negative for the dollar.  

Latest news

Curse continues... Inflation is following us to 2023 Inflation led most of the banks in the world to raise interest rates, in an attempt to reduce it . The International Monetary Fund expects that t
12-2022 30 06:28:23

Gold prices fluctuate with the reduction of dollar's losses Gold's prices varied after its positive start at the expense of the dollar’s decline, which tended to reduce its losses, while oil c
12-2022 29 03:29:32

Vladimir Putin takes revenge by Russian oil embargo President Vladimir Putin has banned Russian oil in response to the price cap. He has signed a decree retaliating against the West's imposition of
12-2022 28 03:04:38

Gold prices rose today, Tuesday, affected by the decline of the dollar, which declined by 0.3%, and gold rose by 0.4% to reach $1804.99 an ounce, and gold futures rose by 0.4% to reach $1811.90. The
12-2022 27 04:19:22

The first Saudi-Japanese ministerial dialogue meeting for energy The Saudi Prince of Energy and the Japanese Minister of Economy and Industry held a meeting in Riyadh - Saudi Arabia, in which they
12-2022 26 02:50:27

More News