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Oil Rout Leaves Markets Stricken With Serious Commodity Concerns

Published 21/04/2020, 13:28
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With the oil rout gathering pace once again, the European markets were stricken with a serious case of the black stuff blues.

In a rapid escalation from its initial losses, Brent Crude tanked by close to 20%, sending the commodity under $21 per barrel for the first time in 18-years.

One of the starker economic warning signs the markets have been handed in recent weeks, investors reacted according, with Europe slick with red.

Plunging out of the 5700-5800 home it had made for itself in the last few sessions, the FTSE sank 110 points, back to a 5-day low of 5685. Its losses were softened by a sharp slide from sterling, which sank 1.1% against the dollar and 0.9% against the euro, as Brexit somehow found a way to rear is ugly mug despite the laser-focus on the covid-19 pandemic.

Trade negotiations have resumed between the UK and EU, with July 1st the new key date – it is the deadline for deciding whether or not to extend the transition period beyond the end of this year in order to secure a free-trade agreement.

Lacking the same falling currency cushion, the Eurozone indices were worse off than their UK cousin. The DAX dropped 300 points to 10350, while the CAC lost 2.5% as it hit 4375.

As for the Dow Jones, a potential 550 point fall would send it back below 23100 – remember last Friday it closed the week above 24250.

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