Markets plunge on oil, terror attacks... Don’t ignore the weak demand for oil says economist...
Markets plunge on oil, terror attacks
Global stock markets are trading lower so far Thursday as oil prices weigh along with news that a terrorist attack has killed at least 7 people in Jakarta.
Asian markets were already weakened by the poor handover from North America and with confidence at a low even some positive movement on oil prices was not enough to avoid another sell-off. Only Shanghai managed to erase losses to close up 2 per cent.
European indexes are lower too on a range of concerns. Locally French car maker Renault lost value on news of a fraud investigation.
Wall Street and Toronto are expected to open slightly lower ahead of US jobs data and trade figures.
Don’t ignore the weak demand for oil says economist
While much of the decline in oil prices is centred on the continued oversupply there is also the issue of lower demand, and not just from China. Stephen King of HSBC told CNBC that some of the emerging markets are showing “extremely weak” growth and said that the low oil prices should be viewed as a “symptom of weakness in global demand.” He points to a cocktail of economic concerns including low investment, high debt and slowing trade and warns that debt levels in particular could stifle the ability for the global economy to grow.
Global stock markets are trading lower so far Thursday as oil prices weigh along with news that a terrorist attack has killed at least 7 people in Jakarta.
Asian markets were already weakened by the poor handover from North America and with confidence at a low even some positive movement on oil prices was not enough to avoid another sell-off. Only Shanghai managed to erase losses to close up 2 per cent.
European indexes are lower too on a range of concerns. Locally French car maker Renault lost value on news of a fraud investigation.
Wall Street and Toronto are expected to open slightly lower ahead of US jobs data and trade figures.
| Latest | 1 month ago | 1 year ago | |
| North America (previous session) |
|||
| US Dow Jones | 16,151.41 (-2.21 per cent) | -6.45 per cent | -8.30 per cent |
| TSX Composite | 12,170.41 (-1.64 per cent) | -4.14 per cent | -13.59 per cent |
| Europe (at 5.00am ET) |
|||
| UK FTSE | 5,849.30 (-1.87 per cent) | -0.42 per cent | -8.44 per cent |
| German DAX | 9,681.50 (-2.81 per cent) | -4.52 per cent | -1.38 per cent |
| Asia (at close) |
|||
| China CSI 300 | 3,221.57 (+2.08 per cent) | -13.20 per cent | -8.02 per cent |
| Japan Nikkei | 17,240.95 (-2.68 per cent) | -8.70 per cent | +2.65 per cent |
| Other Data (at 5.00am ET) |
|||
| Oil (Brent) | Oil (WTI) | Gold | Can. Dollar |
| 30.70 (+1.29 per cent) |
30.74 (+0.85 per cent) |
1091.80 (+0.43 per cent) |
U$0.6949 |
| Aus. Dollar |
|||
| U$0.6919 | |||
Don’t ignore the weak demand for oil says economist
While much of the decline in oil prices is centred on the continued oversupply there is also the issue of lower demand, and not just from China. Stephen King of HSBC told CNBC that some of the emerging markets are showing “extremely weak” growth and said that the low oil prices should be viewed as a “symptom of weakness in global demand.” He points to a cocktail of economic concerns including low investment, high debt and slowing trade and warns that debt levels in particular could stifle the ability for the global economy to grow.
