The major world markets closed with heavy losses on Wednesday, dragged down by the relentless fall in oil prices.
The FTSE-100 index London fell 3.46% , the Dax-30 Frankfurt 2.82%, the CAC-40 in Paris 3.45% and the Ibex-35 Madrid 3.20 percent.
The Milan bourse also closed with a significant drop and its selective index FTSE MIB fell 4.83% , to stand at 17,967.91 points. The overall index FTSE Italy All-Share lost 4.79% , to 19552.82 integers.
Meanwhile, the stock Athens closed down 5.70% , following the trend of most European markets, which posted declines due to concerns about economic growth and the sharp decline oil prices.
Bag Tokyo lost in Wednesday’s session 3.7% and Hong Kong 3.82% , ranking at its lowest level in four years. Chinese shares in Shanghai and Shenzhen each lost 1.03%
Wall Street, meanwhile, closed lower Wednesday accompanying the general fall in global stock markets after the collapse of oil again. The Dow Jones lost 1.56% and the Nasdaq 0.12% .
The Dow Jones industrial average, which fell as more than 3% in the middle of the day, finally relented 249.28 points to 15,769.41 and the Nasdaq fell 5.26 points to 4471.69, according to final data from the session
The extended index S &. P 500 dropped 22.00 points (1.17%) to 1859.33 units.
The day had moments of frenzy when the rhythm of European exchanges, the Dow Jones losing 3.5% reached by averaging the day and reflected the global concern about the continuing drop in oil prices.
A barrel of WTI, which is listed in New York, lost 6.7% to close at 26.55 dollars . In London, where crude Brent is traded, it lost 88 cents and was at 27.88 . In both cases, the values remain at their lowest levels in over 12 years brought down by a more than generous offer that seems to have lowered prospects.
The crash also causes turbulence in Russia, where exports oil and gas account for more than half of budget revenues. On Wednesday, the Russian currency collapsed below 81 rubles per dollar, a record.
In Latin America the financial market Paul went down 1.08% and Buenos Aires 4 08% . While Mexico swam upstream. Rose 0.09%
The seven financial centers in the Gulf countries, which produce daily 18 million barrels of crude, also had sharp declines, such as Riad 5% lower, and Dubai which lost 4.6% .
Since the beginning of the year, Wall Street lost about 8% due to fears of lower growth China and the persistent decline of oil, two factors that also are linked because China is the largest importer of black gold.
“ is the beginning of the year calamitous , probably never saw something like that since January 1998,” said Xavier de Villepion, selling shares in HPC, he said . news agency AFP
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unstoppable fall oil and pessimistic forecasts of the International Energy Agency (IEA), were some of the main reasons for the sharp falls.
Just last Tuesday the IEA warned that the market It will drown “in oversupply” this year.
This is compounded by the return of Iran to the oil market after the lifting of international sanctions following the nuclear agreement that came into force on Saturday, which is expected to admission Tehran would cause further declines in oil prices .
At the same time, the International Monetary Fund (IMF) on Tuesday also lowered its growth forecasts. The IMF also warned of the risk of a “derailment of the world economy” , citing a slowdown in the Chinese economy and the “dangerous” situation of many developing countries.
“At the root of the debacle of the beginning of the year is the imbalance between oil supply and demand , and while prices are not stabilized, stock markets it will bad, “said Chihiro Ohta, an analyst at SMBC Nikko Securities Inc. in Tokyo.
” The next market may need a capitulation oil and I think that is approaching “ estimated Peter Cardillo, chief enconomista signature Standard First Financial.
James Liu, global market strategist at JPMorgan Funds, told EFE news agency that oil demand has continued and the global economy remains relatively healthy. But companies still produce a lot of oil, so there are huge reserves. Although the closure of wells began at the end of 2014 after prices began to decline, hydrocarbon production was not big changes.
Liu predicted that production “will continue to fall” and oil prices will stabilize “midyear” before starting to rise.
Agencies
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