Left Menu
Development News Edition

GLOBAL MARKETS-Oversupply angst drags oil lower, stocks drift near highs


GLOBAL MARKETS-Oversupply angst drags oil lower, stocks drift near highs
Image Credit: Storyblocks

Oil prices fell sharply on Tuesday on oversupply concerns, while a gauge of stocks across the globe rose for a seventh straight session after large overnight gains in Asia. The U.S. benchmark S&P 500 index was little changed, the blue-chip Dow Jones Industrial Average fell and the Nasdaq rose, all having hit record intraday highs earlier in the session.

Traders cited the lingering uncertainty over whether the United States and China could agree to end a near 1-1/2 year trade war as a reason for stocks to drift and bond prices to go higher. U.S. President Donald Trump said he would raise tariffs on Chinese imports if no deal is reached with Beijing to end the trade war. The next round of tariffs is due to start in mid-December.

Oil fell after sources told Reuters that Russia is unlikely to agree to cut its oil output further at a meeting with fellow exporters next month. Separately, Norway's October oil production beat forecasts and the potential oversupply, combined with some worries over global demand next year, sent prices lower.

"Moreover, Russia also failed to fulfill its agreed cuts in November so far," Commerzbank analyst Carsten Fritsch said. U.S. crude fell 3.38% to $55.12 per barrel and Brent was last at $60.73, down 2.74% on the day.

On Wall Street, the Dow Jones Industrial Average fell 102.2 points, or 0.36%, to 27,934.02, the S&P 500 lost 1.85 points, or 0.06%, to 3,120.18 and the Nasdaq Composite added 20.72 points, or 0.24%, to 8,570.66. Hopes of a trade truce earlier in the day drove European stocks to a four-year high and a measure of world stock markets to their highest in nearly two years, but those gains were pared later in the session.

The pan-European STOXX 600 index lost 0.12% while MSCI's gauge of stocks across the globe gained 0.02% eking out its seventh straight session of gains. Emerging market stocks rose 0.48%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.68% higher, while Japan's Nikkei futures lost 0.66%.

Long-dated U.S. Treasury yields slipped as risk appetite weakened. Benchmark 10-year notes last rose 7/32 in price to yield 1.786%, down from 1.808% late on Monday.

The 30-year bond last rose 29/32 in price to yield 2.252%, from 2.293% late on Monday. The dollar was little changed against a basket of six major currencies. The dollar index rose 0.05%, with the euro up 0.05% to $1.1075.

While the dollar was supported by recent U.S. economic data meeting lowered expectations, the greenback may be in for some weakness, said Juan Perez, senior foreign exchange trader and strategist at Tempus Inc. "Central banks cannot provide that much to incentivize stocks any higher, thus risk-appetite is muted and the buck may continue to lose based on the fact that the American economy is indeed slower and the Fed's ability to satisfy anyone is in question," Perez said.

The Japanese yen strengthened 0.13% versus the greenback at 108.55 per dollar, while Sterling was last trading at $1.2925, down 0.21% on the day. Spot gold added 0.1% to $1,472.19 an ounce.

Copper rose 0.86% to $5,880.00 a tonne. Three-month aluminum on the London Metal Exchange lost 0.06% to $1,737.00 a tonne.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

What happens to your outstanding loans if the bank falls?

... ...

Time for a change! Innovations to stop the growing plastic pollution

As the planet is drowning in plastic pollution, many new innovative approaches and solutions have emerged to effectively deal with the menace....

How to avoid fake universities and fishing bait like Farmington

As education sharks are roaming around to prey, we present a guide on how to mitigate hunters and reach to a genuine universityinstitute. In this era of commercialization of education, the fake universities and economic frauds in educationa...

How India is being pushed towards commercialization of higher education

The reluctance of the present dispensation in pushing the higher education towards commercialization is not just limited to the fees hike in Jawaharlal Nehru University JNU. It seems the government is gradually implementing a plan which is ...

Videos

Latest News

Ethiopia PM should talk to media when collecting Peace Prize -Nobel committee

Ethiopian Prime Minister Abiy Ahmed will not talk to the news media when he is in Oslo next week to receive the Nobel Peace Prize, drawing rare criticism from the award committee, which says a free and independent press is vital.The Ethiopi...

WHO decries "collective failure" as measles kills 140,000

Measles infected nearly 10 million people in 2018 and killed 140,000, mostly children, as devastating outbreaks of the viral disease hit every region of the world, the World Health Organization said on Thursday.In figures described by its d...

UPDATE 1-Merkel to give Auschwitz 60 million euros from Germany during first visit

Angela Merkel will make her first visit to the Auschwitz-Birkenau Memorial on Friday after 14 years as German chancellor, bringing a 60 million euro donation to help conserve the site where the Nazis ran their largest death camp, the museum...

UPDATE 6-U.S. cracks down on Russian 'Evil Corp' hackers after $100 mln spree

U.S. authorities on Thursday took aim at a Russian cybercriminal group known as Evil Corp, indicting its Lamborghini-driving alleged leader and ordering asset freezes against 17 of his associates over a digital crime spree that has netted m...

Give Feedback