Skip to main content

Global stocks fall as supply worry hits oil; U.S. dollar climbs



World stock markets fell on Tuesday as a drop in oil prices weighed on the energy sector, while hawkish comments from several U.S. Federal Reserve officials pushed the U.S. dollar to a one-month high.

After the market close, index provider MSCI said it will add mainland Chinese 'A' stocks to its widely followed Emerging Markets Index in a landmark decision for the global investment landscape.

Oil fell about 2 percent, with Brent settling at seven-month lows and U.S. crude at its cheapest since September, after increased supply from several key producers overshadowed high compliance by OPEC and non-OPEC oil producers with a deal to cut global output.

That slide weighed down energy stocks on Wall Street and in Europe. 

The S&P energy index dropped 1.3 percent as the worst-performing of the 11 major S&P sectors and Europe's oil and gas sector slumped 2.2 percent.

"People really thought $45 to $55 was kind of the range of oil, but it is getting weaker and weaker and U.S. producers are getting more and more efficient," said Ken Polcari, director of the NYSE floor division at O’Neil Securities in New York

"So if that is the case, they are going to keep pumping."

U.S. crude settled down 2.2 percent at $43.23 per barrel and Brent settled 1.9 percent lower at $46.02.

The drop put U.S. crude in a bear market, traditionally defined as a drop of more than 20 percent from a recent high.

The Dow Jones Industrial Average fell 61.85 points, or 0.29 percent, to 21,467.14, the S&P 500 lost 16.43 points, or 0.67 percent, to 2,437.03 and the Nasdaq Composite dropped 50.98 points, or 0.82 percent, to 6,188.03.

The Dow and benchmark S&P 500 hit fresh record highs on Monday, buoyed by a rebound in the tech sector.

The pan-European FTSEurofirst 300 index lost 0.66 percent and MSCI's gauge of stocks across the globe shed 0.69 percent.

Alongside MSCI's addition of China 'A' shares to the emerging markets benchmark, the index provider decided not to add Argentina to the same index and will consult on adding Saudi Arabia. Nigeria will remain under review as a frontier market.

The U.S. dollar strengthened for a second day, hitting a one-month high of 97.871 against a basket of major currencies as Federal Reserve officials maintained a hawkish tone on hiking interest rates.

On Monday, New York Fed President William Dudley said halting the rate-hiking cycle now would imperil the economy. 

That was followed by Boston Fed President Eric Rosengren, who said on Tuesday the era of low interest rates in the United States and elsewhere poses financial stability risks.

In addition, Chicago Federal Reserve Bank President Charles Evans said he was increasingly concerned that a recent softness in inflation is a sign the Fed will struggle to get price pressures back to its 2 percent objective. 

Dallas Federal Reserve President Robert Kaplan said the Fed needs to be careful about raising U.S. interest rates further due to low rates on 10-year Treasuries.

The dollar index rose 0.24 percent, with the euro down 0.2 percent to $1.1126. 

The greenback is up nearly 1 percent for the month.

Sterling was last trading at $1.2624, down 0.85 percent on the day. 

Bank of England Governor Mark Carney doused speculation that he might soon back higher interest rates, telling bankers on Tuesday that he first wanted to see how the economy coped with Brexit talks in coming months.

Benchmark 10-year Treasury notes last rose 9/32 in price to yield 2.1565 percent, down from 2.188 percent late on Monday.

Comments

Popular posts from this blog

Iran Killing Command: The use of firearms in dealing with protesters

The document you see on the image is the order of the commander of the Tehran repressive force to all the units based in the city.

Based on this agenda, the mercenaries of the corrupt government Islamic Republic of Iran have been allowed to use firearms in the event of any protest movement against people by the regime.
This is a murder command.
The repressive force of the law, known to the world's famous police and guardians, should protect the lives of its citizens, by freeing their mercenaries, they allow them to murder Iranians who are protesting the corruption in the government and you have the important message that if you come to the streets in protest of corruption and torture and massacre, we will kill you.
Because, according to criminal Khomeini, maintenance of the system is obligatory.
A corrupt government that is so hideous that spend billions of dollars from the national treasury and popular capitalto the suppression of its people and the countries of the region, must be ov…

Armenian protesters block traffic, railways & airport as protest leader loses PM bid

Anti-government protesters disrupted traffic in Armenia’s capital, blocking railways and roads leading to Yerevan International Airport, after the parliament voted against opposition leader Nikol Pashinyan’s bid for interim PM.
Protesters managed to block streets connecting downtown Yerevan to residential districts, disrupting transportation in Armenia’s capital, footage from the scene shows. 
Yerevan’s metro system has also been paralyzed as demonstrators sit on the tracks, preventing trains from passing.
Meanwhile, protesters disrupted traffic on a road leading to Yerevan’s Zvartnots International Airport, located just 12km from the center of the city. 
Consequently, some passengers had to go the rest of the way on foot in order to catch their flights, according to Sputnik news agency.
Railway services have also been disrupted all across the country amid the demonstrations, a spokesman for South Caucasus Railways confirmed to Interfax. 
Some other highways, including the one connecting th…

ایران فرمان قتل : دستور استفاده از سلاح گرم در برخورد با معترضان

سندی که در تصویر میبینید دستور فرمانده نیروی سرکوبگر انتظامی تهران به همه یگانهای مستقر در این شهر است.
بر اساس این دستور کار ، مزدوران حکومت فاسد نظام جمهوری اسلامی اجازه یافته اند که درصورت بروز هرگونه جنبش اعتراضی از سوی مردم علیه رژیم ، از سلاح گرم استفاده کنند.
این دستور یک فرمان قتل است.
نیروی سرکوبگر انتظامی که به ظاهر و تعریف شناخته شده پلیس در سراسر جهان ، میبایست حافظ جان شهروندان باشد ، با آزاد گذاشتن دست مزدوران چکمه پوش خود انها را مجاز به قتل ایرانیان معترض به فسادهای موجود درلایه های حکومت میکنند و این پیام مهم را در خود دارد که اگر در اعتراض به  فساد و شکنجه و کشتار به خیابانها بریزید شما را خواهیم کشت.
چرا که به گفته خمینی دجال، حفظ نظام از اوجب واجبات است.
حکومت فاسدی که انقدر وقیح هست که میلیاردها دلار از خزانه ملی و سرمایه مردمی را صرف سرکوب مردم خود و کشورهای منطقه میکند باید سرنگون کرد.
اکنون چهل سال است که کشور ما به اشغال این ملایان جنایکتارخونخوار و اسلام تحمیلی در آمده است .
هنوز باورش برای برخی سخت است که درک کنند کشور ما به معنای واقعی کلمه از سوی بنیادگرایان الله…