Yahoo Finance Market Snapshot – Stock Markets Slide as Oil Prices Slide Too
Stock Markets Reverse Gains
Stock markets in Europe have been sliding over the past few hours as the fears over the oil prices gripped the markets. The oil prices have been sliding since last evening when the private inventory data showed a greater than expected build in the inventory in the US. This was further confirmed today as the official inventory data also showed a greater build and this has pushed the oil prices below $49 where it is trading as of this writing. The stock markets have also been following suit, as a result of this development, and we have been seeing the DAX and the FTSE getting hit hard. They have almost reversed the entire upmove from yesterday and are just confirming the downtrend that they are in currently. This is expected to continue in the short term as well.
ADP Increases Panic
The ADP employment report from the US was released today and it showed a slightly weaker employment report though there was a correction higher in the data from the previous month. This has not caused too much of a reaction yet in the dollar but the dollar bulls would be worried as this employment report is considered as a precursor to the NFP that will be released on Friday and that piece of data is likely to have a much bigger impact on the markets.
Kiwi Gets Hit
The New Zealand dollar has been hit hard as the employment data came on much weaker than what was expected and this has pushed the dolar lower all across the board. This points to further weakness in the coming days as this basically throws out the notion of a rate hike from the RBNZ anytime soon.
This article was originally posted on FX Empire
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