On 08 December, 2015 – Sliding oil prices continue to weigh on global stocks

Stocks tumbled globally on sliding crude prices and disappointing Chinese merchandise trade data.
United States
Markets declined broadly thanks to sharp drops in materials and energy shares. The price of oil continued to fall Tuesday, and the US benchmark for crude remained near its lowest level in seven years. Mining stocks in particular were hurt by weak economic news from China, a major importer of raw materials. The Dow Jones industrials were down 0.9 percent, the S&P declined 0.65 percent and the Nasdaq edged 0.1 percent lower. 
Outerwall dropped after the company lowered its earnings guidance and announced that the head of its movie kiosk division, Redbox, was leaving as rental numbers fall. Chipotle Mexican Grill shares retreated after people were sickened after eating at one of the company’s restaurants in Boston. Anglo American dropped after it said it would shed around 85,000 employees — or 63 percent of its work force — as part of a radical restructuring program meant to cope with the tumble in commodities prices. Mining and energy stocks including Freeport-McMoRan and Kinder Morgan retreated.
Investors also were selling commodities in reaction to more signs that China is slowing. Customs data showed exports from the world’s second largest economy contracted 6.8 percent in November, worse than October’s 3.6 percent fall. Imports dropped 8.7 percent. China accounts for as much as 40 percent to 50 percent of global commodity demand, according analysts.
Europe
Stocks dropped during Tuesday’s trading session after Asian markets pulled back. China’s disappointing merchandise trade data also contributed to negative sentiment. Mining and energy stocks were under pressure from the continuing slide in commodity prices. The FTSE and SMI both lost 1.4 percent, the CAC dropped 1.6 percent and the DAX tumbled 2.0 percent.
RWE and E.ON retreated. Banks including Commerzbank, Deutsche Bank, Société Générale, Crédit Agricole and BNP Paribas all finished lower. Air France-KLM declined after reporting passenger statistics for November. Bouygues climbed on reports that Orange SA is in early discussions to buy its telecommunications and media assets. Orange slipped. Anglo American sank after the miner suspended its dividends for the second half and fiscal 2016. Rio Tinto declined after the company said it now expects total capital expenditure in 2016 will be around $5 billion, compared to previous forecasts of less than $6 billion. Mondi dropped on a broker downgrade. Sainsbury closed higher on a broker upgrade.
Mining stocks were under pressure due to weakness in commodity prices and concerns over China, following the release of its disappointing trade data. Antofagasta, Glencore, BHP Billiton, Randgold Resources and Fresnillo were down. However, BP closed in positive territory while Royal Dutch Shell barely slipped into negative territory.
Third quarter Eurozone gross domestic product was unchanged from the flash estimate. GDP was up 0.3 percent on the quarter and 1.6 percent when compared with the same quarter a year ago. October UK industrial production was up 0.1 percent and 1.7 percent from a year ago. However, manufacturing was down 0.4 percent on the month and 0.1 percent on the year.
Asia Pacific
Share indices hit three week lows on Tuesday as a rout in oil prices weighed on commodity-related stocks and sluggish Chinese trade data rekindled global growth worries. Lingering concerns about a looming US interest rate increase also kept investors on edge.
November exports decreased a more than expected 6.8 percent from a year ago while import dropped 8.7 percent. The merchandise trade surplus was $54.1 billion, down from $61.6 billion in October. A report from the People’s Bank of China showed (on Monday) that the country’s foreign exchange reserves declined to its lowest level since February 2013 at the end of November, as the PBoC sold yuan to stabilize the currency exchange rate. The Shanghai Composite dropped 1.9 percent while the Hang Seng lost 1.3 percent.
The Nikkei retreated 1.0 percent. Revised third quarter GDP grew 0.3 percent on the quarter instead of a decline of 0.2 percent. On an annualized basis, GDP grew 1.0 percent. The data meant that Japan dodged a technical recession, easing pressure on the Bank of Japan to unveil more stimulus. Inpex, JX Holdings and Nippon Light Metal Holdings were down. Toshiba declined after Japan’s securities industry watchdog recommended a record fine of ¥7.37 billion on the company for an accounting scandal. Airline ANA Holdings rallied on expectations for a drop in fuel costs.
Both the S&P/ASX and All Ordinaries dropped 0.9 percent as tumbling oil and metal prices weighed on the resource sector. Upbeat business confidence figures failed to lift investor sentiment. Woodside Petroleum retreated 4 percent after withdrawing its A$11.6 billion proposal for Oil Search. Santos and Oil Search tumbled after crude prices fell more than 5 percent overnight. Explosive and chemical supplier Orica dropped after an adverse court ruling on a tax matter.
The Kospi was down 0.7 percent while the Taiex declined 1.3 percent. The Sensex dropped 0.9 percent.
Global Stock Markets

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Japan posts October machine orders. China reports November consumer and producer price indices. Germany releases October merchandise trade. In the US, October wholesales trade will be posted.
*Note — all releases are listed in local time.