The continued oil price volatility has triggered another slide in European stock markets this morning, after yesterday’s short-lived relief rally.
European bourses fell to near three-month lows as global growth jitters and depressed oil prices weighed on investors, reports The Telegraph.
Britain’s benchmark index opened down by 1.4 per cent, while the German DAX and the CAC in Paris lost 1.3 per cent and 1.3 per cent respectively.
Mike van Dulken, of Accendo Markets, said: “The negative opening call comes after another late sell-off and heavy stateside losses driven by continued oil price volatility, which sapped sentiment, while attacks in Jakarta have added to the fray overnight to take Asian markets back to three-year lows.”
Attacks in Jakarta overnight left at least six dead after suicide bombers targeted a Starbucks cafe.
Overnight, China’s yuan weakened and stock markets bounced back. Even a torrid session on Wall Street did not hinder the rebound in Chinese stock markets in afternoon trading. The CSI300 index rose 2.1 per cent to 3,221.57, while the Shanghai Composite index made gains of 2pc.
It was another ugly day for crude oil, which sank below the $30-a-barrel mark earlier in the week, and despite trading higher yesterday, crude inventory data from the US Energy Information Administration proved to be enough to drag it down again.
Last night on Wall Street, US stock markets sank towards their lowest level in three months and entered correction territory after another oil-inspired sell-off.
Naeem Aslam, of Ava Trade, said: “Sentiment is immensely negative over in Europe and it has filtered from Wall Street where the S&P500 slipped below the 1,900 mark and entered officially in a correction territory with respect to its all-time high.”
The S&P 500 closed 2.5 per cent lower at 1,890, while the Dow Jones Industrial Average and the Nasdaq fell by more than 2 per cent.
