BCN-11,12 World stocks rally ebbs while oil prices sink

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WORLD-MARKETS

World stocks rally ebbs while oil prices sink

NEW YORK, Nov 9, 2018 (BSS/AFP) – A global stocks rally faded on Thursday
as the European Union warned of slowing growth and Wall Street pulled back
from a post-election bounce.

Meanwhile, fears of higher oil supply sent prices into a bear market, or a
20 percent decline from last month’s high, which weighed on oil-related
stocks.

The dollar strengthened against major rivals after Wednesday’s selloff in
the wake of the key US midterm elections.

London outperformed on hopes that a Brexit deal would soon be announced,
dealers said. But Paris and Frankfurt fell.

Wall Street also ended mostly lower as investors lost the head of steam
from Wednesday’s post-election rally, when a split decision in the US vote
reassured markets that Congress was unlikely to infringe on the business
environment.

“A lot of traders have taken a step back following the post-election
surge,” said Ken Berman of Gorilla Trades.

Art Hogan of B Riley FBR told AFP investors might have been disappointed
the Fed’s commentary had still pointed to further “gradual” interest rate
hikes.

– EU growth ‘disappointment’-

In Europe meanwhile, the EU on Thursday said growth in the eurozone would
slow in 2019 and beyond, citing global uncertainty and heightened trade
tensions.

The European Commission also warned that Italy’s deficit would balloon in
2019, owing to a spending boost planned by Rome’s populist government that
blatantly defies the EU expenditure rules.

Analysts at Capital Economics called the eurozone’s growth slowdown “a
major disappointment,” although they said growth could pick up again over
coming quarters.

Elsewhere, oil prices fell — with WTI crude closing lower for the ninth
session in a row — after data showing a surge in US energy stockpiles,
although there was some support from reports OPEC could reduce output next
year.

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WORLD-MARKETS 2 LAST NEW YORK

The cartel had started opening the taps again this year after the end of a
long-running cap agreement with Russia, which boosted prices.

But with production now rising globally again — and Iran sanctions
seemingly having little impact owing to US waivers — Bloomberg News said
ministers meeting in Abu Dhabi this weekend were considering a reduction.

“Saudi Arabia and Russia have increased production, and prices have come
down $15 a barrel,” Hossein Kazempour Ardebili, Iran’s representative to the
OPEC, was quoted as saying.

“They have over-balanced the market” and have no choice but to cut about
one million barrels a day.

– Key figures around 2200 GMT –

Oil – Brent Crude: DOWN $1.42 at $70.65 per barrel

Oil – West Texas Intermediate: DOWN $1 cents at $60.67 per barrel

New York – Dow: FLAT at 26,191.22 (close)

New York – S&P 500: DOWN 0.3 percent at 2,806.83 (close)

New York – Nasdaq: DOWN 0.5 percent at 7,530.88 (close)

London – FTSE 100: UP 0.3 percent at 7,140.68 points (close)

Frankfurt – DAX 30: DOWN 0.5 percent at 11,527.32 (close)

Paris – CAC 40: DOWN 0.1 percent at 5,131.45 (close)

EURO STOXX 50: DOWN 0.3 percent at 3,237.60 (close)

Tokyo – Nikkei 225: UP 1.8 percent at 22,486.92 (close)

Hong Kong – Hang Seng: UP 0.3 percent at 26,227.72 (close)

Shanghai – Composite: DOWN 0.2 percent at 2,635.63 (close)

Euro/dollar: DOWN at $1.1364 from $1.1434 at 2200 GMT

Pound/dollar: DOWN at $1.3063 from $1.3130

Dollar/yen: UP at 114.07 yen from 113.53 yen

BSS/AFP/HR/0930