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- Oil slump hits global energy stocks, pound slides – markets wrap
Oil slump hits global energy stocks, pound slides - markets wrap
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Loading...Crude turns higher after plunging in wake of OPEC meeting.
Japan, Australian equities drop.
A slump in crude weighed on energy shares as global equity markets headed for a lower finish to the week.
Stocks from Tokyo to Europe fell, with energy producers dropping the most.
Global equities are on course for the best week since April, trading at a record high after six weeks of gains, as investors bet global economic growth can withstand higher U.S. interest rates as soon as next month. Stocks have recovered from worries surrounding the prospects for President Donald Trump’s reform policies, which triggered the biggest slide on the S&P 500 in eight months last week.
Volume may be lower than normal in some markets as investors approach the long weekend in the U.S. and the U.K., both of which have holidays on Monday.
The British pound dropped after a poll showed the Conservative party lead narrowed after the Manchester attack, and as investors in Asia sold the currency after U.K.’s first-quarter economic growth missed estimates.
The Bloomberg Dollar Spot Index fell less than 0.1 percent as of 8:09 a.m. in London, after a 0.2 percent increase on Thursday. The pound slid 0.5 percent to $1.2880. The Aussie dropped 0.2 percent, after losing 0.7 percent on Thursday. Currencies of countries heavily reliant on commodities as an export all suffered in the wake of the slide in raw materials. The yen rose 0.5 percent to 111.32 per dollar, after dropping 0.3 percent on Thursday. Data on Friday showed Japan’s core consumer prices rose for a fourth month in April, the longest run of gains since mid-2015.
The Stoxx Europe 600 Index dropped 0.3 percent, with oil and gas producers falling 1.1 percent.
Futures on the S&P 500 fell less than 0.1 percent. Japan’s Topix slipped 0.6 percent, trimming its weekly advance to 0.6 percent. Australia’s ASX 200 Index fell 0.7 percent while South Korea’s Kospi rose 0.5 percent to another record. Hong Kong’s Hang Seng Index was flat, keeping its weekly gain at 1.8 percent, while the Shanghai Composite increased 0.1 percent.
West Texas Intermediate crude rose 0.5 percent to $49.13, after sinking 4.8 percent in the previous session. Gold rose 0.5 percent to $1,262.01 an ounce, trading near the highest since April.
Source: Bloomberg Pro Terminal
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