Ripples Advisory, Oil's 4% tumble weighs on energy shares; banks rally
Oil slumped as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers.
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The price of oil tumbled more than 4 per cent on Monday, putting pressure on energy shares and keeping global stock markets in check, although financial shares rallied after upbeat news from Bank of America and Deutsche Bank.
Oil slumped as Libyan ports reopened and traders eyed potential supply increases by Russia and other producers.
U.S. crude settled down 4.15 per cent at $68.06 a barrel, while Brent settled at 71.84, down 4.63 per cent, and touched a three-month low.
Concerns over China's second-quarter economic growth also weighed on oil prices. The country's economy expanded at a slower pace as Beijing's efforts to contain debt hurt activity, while June factory output growth weakened to a two-year low.
"The GDP missing a little bit psychologically was a warning sign that China is doing OK now, but not quite as strong as expected," said Phil Flynn, an analyst at Price Futures Group in Chicago.
Wall Street's main indexes ended little changed following strong weeks as investors geared up for a big week of corporate earnings and awaited commentary on the impact of U.S. trade disputes with China and its other trading partners.
"It looks as though we're just taking a bit of a break after a good run last week," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
The Dow Jones Industrial Average rose 44.95 points, or 0.18 per cent, to 25,064.36, the S&P 500 lost 2.88 points, or 0.10 per cent, to 2,798.43 and the Nasdaq Composite dropped 20.26 points, or 0.26 per cent, to 7,805.72.
Major energy stocks such as Exxon Mobil, Chevron and BP weighed on key indexes.
Financials in the United States and Europe were higher following Bank of America's better-than-expected quarterly profit and Deutsche Bank's upbeat earnings preview.
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