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The Accumulator: oil's woes show no signs of slowing
Global markets continue to struggle as oil prices hit a near 12-year low. Our Accumulator data table reveals all.
by Sam Antrobus on Jan 15, 2016 at 17:12
A horror start to the year for oil prices worsened this week, with the subdued crude price accelerating into freefall.
Oil fell 16% in the five days to yesterday, as our exclusive Accumulator data table shows. In dipping below the $30 a barrel mark for two consecutive days, the price of Brent crude reached its lowest level since 2004.
With oil now down 21.8% for the year so far, global markets have taken a further hit, adding to their losses for 2016. Barring the S&P 500 and India’s CNX Nifty, all the major global indices are in the red, with oil-reliant Russia experiencing a particularly tough time over the past week. The MCSI Russian Index was down 5.5%, while the FTSE 100 fell 0.6% in the week to yesterday, and has fallen even further today.
China did not endure quite the brutal sell-off of last week, with the Shanghai Composite dropping 2.5% in the five days to yesterday. And there were some signs that the state of the Chinese economy was not quite as bad as the most bearish commentators had painted.
But while trade data from the world's fastest-growing economy this week wasn't as bad as expected, the Shanghai Composite entered bear market territory today, with a 3.5% fall taking losses since December's high to 21%.
It has been another uninspiring week for the pound, as it suffered losses against the dollar, yen and euro. Hitting a new five-and-a-half year low against the dollar, poor British industrial output data has not helped sterling’s cause, raising further questions about the strength of the UK’s economic recovery.
While inflation lingers just above zero, the looming referendum on the UK’s membership of the European Union has also continued to weigh down on the pound.
It is not just US shares that are outperforming the rest of the world, with US treasuries also leading the way in fixed income. While this only marginally edged out eurozone government debt, which increased by 1.4%, gilts performed more sluggishly, rising by a mere 0.6%.
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