Thursday 22 June 2017 13:00
Oil prices continue to push stocks lower
On Thursday stocks across Europe were headed for a third day of losses as yet another slump in oil prices on Wednesday fed into markets. Amid a risk-off mood havens were in demand, and the yen gained with precious metals.
Energy companies led the Stoxx Europe 600 Index lower after crude dropped further into a bear market yesterday. Still, West Texas Intermediate oil fluctuated before moving higher.
The ripple effects of oil’s prolonged rout are starting to be felt throughout markets. The price weakness appears to be industry-specific rather than a reflection of rising concerns about global growth, and that may help limit contagion.
Also in focus are the newly-started negotiations on Britain’s split with the European Union. Prime Minister Theresa May, in the first EU summit since the election, will outline how the U.K. proposes to treat the bloc’s citizens after it leaves.
West Texas oil rose 0.8 percent to $42.85 a barrel as of 11:35 a.m. in London. It tumbled 2.3 percent in the previous session. Gold climbed 0.4 percent to $1,250.96 an ounce, extending gains after halting a five-day slide on Wednesday.
The Europe Stoxx 600 dropped 0.3 percent, sliding for a third straight session as energy shares lost 1 percent. Futures on the S&P 500 Index fell less than 0.1 percent. The underlying gauge slipped 0.1 percent on Wednesday, with Exxon Mobil Corp. and Chevron Corp. contributing the most to the decline. The Nasdaq 100 Index climbed 1 percent, continuing its rebound from a two-week selloff.
Technology companies gave a lift to Asian equities, helping the MSCI Asia Pacific Index advance 0.3 percent. Australia’s S&P/ASX 200 Index jumped 0.7 percent, after tumbling 1.6 percent on Wednesday to erase its gain for the year. Japan’s Topix was weighed down by strength in the yen.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management, TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: email@example.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.