European stocks closed lower on Monday for fifth session in a row dragged lower by energy shares as decline in oil prices continued. The euro ended little changed against the dollar. The Stoxx Europe 600 fell 1.8%, Germany’s DAX 30 closed down 1.9% at 10,139.34. Energy stocks closed sharply lower with Britain’s Tullow Oil and Austria’s OMV down 4.7% and 3.8% respectively. Spain’s Repsol sank 3.9% and French oil producer Total lost 2.9%. Exporters fell with auto-makers’ shares closing 2.6% lower after opening higher following the news that China’s factory output rose to a five-month high in November. In economic news Eurostat reported the 0.6% monthly rise in industrial output in October after two straight months of decline in euro-zone was stronger-than-expected. At 10:30 CET today November Consumer Price Index will be released in UK. The tentative outlook is positive for Pound. At 11:00 CET December ZEW Economic Sentiment for Germany and euro-zone will be published. The tentative outlook is positive for euro. Tomorrow from 09:00-10:00 CET December Manufacturing and Services PMIs for France, Germany and euro-zone will be released. The tentative outlook is positive.
Nikkei lost 1.7% today closing at seven-and-half week low with yen nearly flat against the dollar as investors refrained from big bets ahead of Federal Reserve’s interest rate decision tomorrow.
Crude oil prices are edging higher today after US West Texas Intermediate crude oil for delivery in January closed up 1.9% at $36.31 a barrel on Monday on the New York Mercantile Exchange after hitting $34.53 a barrel. January Brent crude on London’s ICE Futures exchange settled lower one cent at $37.92 a barrel, the lowest level since December 2008. Oil futures prices are set to lose about a third of their value this year and have fallen about 13% since early December after the Organization of the Petroleum Exporting Countries decided to keep its output at current levels. Concern that OPEC production may rise, together with the strength in the US dollar, resilient US production and a continuing global supply glut weigh on oil prices.
Natural-gas prices sank to their lowest settlement since 2001 as warmer weather and bigger-than-usual supplies pushed prices lower.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
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