Crude's Collapse Is Sending Shockwaves

15 November, 2018

Investors have gone from contemplating the prospect of oil at $100 to sub-$50 in less than two months. No wonder global markets are playing catch-up. From stocks and bonds to currencies, assets worldwide are gripped by a crude awakening. Monday saw oil’s largest one-day drop in three years, securing its longest losing streak on record.

Early trading jitters on Wednesday suggested the sell-off may not be over, though West Texas Intermediate later climbed after OPEC President Suhail Al Mazrouei said the group and its allies would do what is needed to balance the market. The Stoxx Europe 600 Index dropped on Wednesday, with oil and gas companies among the big losers. There could be more pain in store. The performance of energy shares relative to the broader index has yet to hit year-to-date lows despite elevated price swings in the oil-market complex.

In the U.S., energy stocks were the biggest drag on the S&P 500 Index on Tuesday as the benchmark gauge reversed a gain of more than 1 percent to finish in the red. The jump in volatility of the oil price will feed into already bruised U.S. stocks, according to Macro Risk Advisors. About $80 million flowed out of the SPDR S&P Oil and Gas Exploration and Production exchange-traded fund, ticker XOP, on Tuesday. That was the third day of withdrawals and the largest in more than two weeks. The corporate bond market had taken the slide in crude on the chin but Tuesday’s rout may force investors to pay closer attention. U.S. investment-grade debt was already facing the worst year since 2008, and energy securities make up some 15 percent of the BBB rated universe.

Declining oil is a two-sided coin for the collection of assets and economies classed as emerging markets. Many of the countries, such as Gulf nations like Saudi Arabia, are energy exporters that suffer when prices decline. Others, like Turkey and India, have to import fuels and so benefit from cheaper energy.


Source link  
Risk-sensitive currencies on the rise

Stock markets show growth after the release of strong data for China and Japan as their respective PMIs were better than expected which supported...

Trump again puts pressure on OPEC

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year...

Turkish lira fell by 5% before elections

The Turkish lira dropped by as much as 5 percent against the dollar on Thursday morning, as the country gears up for elections this weekend. The greenback...


May won't ask for a long Brexit delay

Prime Minister Theresa May won't ask the European Union for a 'long' delay to the Brexit deadline, her office said, after pro-Brexit ministers objected...

Demand for safe assets grows

Markets remain under moderate pressure, despite the Fed comments. Powell's semi-annual speech in Congress reinforced expectations that the US Central Bank...

US-China trade talks: deadline postponed

China's blue-chip index jumped more than 6% on Monday morning on news that Trump would postpone of the tariff's introduction. The U.S. President...


China buys American oil again

The first U.S. oil shipments to China in months will reach their destinations just days from now, punctuating a pledge by President Donald Trump in December that China would begin buying...

US raises oil prices by imposing sanctions

US oil prices inched up on Tuesday, buoyed by expectations of tightening global supply amid U.S. sanctions on Venezuela and production cuts led...

Trump's tax reform worth $1.5 trillion

One year after one of the biggest tax overhauls in American history, a survey released on Monday has revealed that the tax cut has not brought about...


In the past 24 hours Bitcoin has lost -1.46% and reached $5259.09274553. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.4259% and is now at $1.1296. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 1.71% and is now at $168.250150864. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2019

# Broker Review
1easyMarketseasyMarkets93%
2FXTMFXTM90%
3HYCMHYCM89%
4FxProFxPro87%
5FIBO GroupFIBO Group85%
6OctaFXOctaFX83%
7HotForexHotForex82%
8FXCMFXCM79%
9AlpariAlpari78%
10XMXM73%
  


Share: