NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Oil Rout Leaves Markets Stricken With Serious Commodity Concerns

Published 21/04/2020, 13:28
UK100
-
FCHI
-
DJI
-
DE40
-
LCO
-

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.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

Original Post

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.