associate sponsors


Oil slides as crude stocks mount, dollar strengthens | Reuters

By Lewis Krauskopf

NEW YORK Falling oil prices weighed on energy shares on Tuesday in the wake of a report of rising crude stocks, while the U.S. dollar strengthened ahead of an expected Federal Reserve decision to raise interest rates.Oil slid after OPEC reported a rise in global crude stocks and a surprise output jump from its biggest member, Saudi Arabia. Even though OPEC made an upward revision to its global demand outlook, signs of even modestly higher Saudi output flustered investors.U.S. crude prices CLc1 settled down 1.4 percent at $47.72 a barrel, touching their lowest point since Nov 30. Benchmark Brent crude LCOc1 settled down 0.8 percent at $50.92 a barrel."None of the data you’re getting is good if you’re trying to increase (crude) prices. It doesn’t look like oil supply is diminishing," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.MSCI's all-country world stock index .MIWD00000PUS fell 0.4 percent. On Wall Street, major equity indexes fell, with the energy sector .SPNY declining 1.1 percent.

The Dow Jones Industrial Average .DJI fell 44.11 points, or 0.21 percent, to 20,837.37, the S&P 500 .SPX lost 8.02 points, or 0.34 percent, to 2,365.45 and the Nasdaq Composite .IXIC dropped 18.97 points, or 0.32 percent, to 5,856.82.Shares of U.S. hospitals and health insurers fell after a forecast that 14 million Americans would lose medical insurance by next year under a Republican plan to dismantle the Affordable Care Act, known as Obamacare.With the Fed widely expected to raise rates, the focus of Wednesday's decision will be on other aspects, including the pace of future hikes.“People tomorrow are going to be looking at what the Fed says after the meeting, what the rationale is for their move, and what they say about their balance sheet,” said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"They have a balance sheet full of bonds they bought during (quantitative easing) and they’re going to start getting rid of them. Investors are wondering, what will be the process," Hellwig said.Investors also are assessing the potential outcome and impact of a gathering of G20 finance chiefs, U.S. President Donald Trump's first budget and a tense election in the Netherlands.After four sessions of gains, the pan-European STOXX 600 share index shed 0.3 percent, as banking .SX7P and energy .SXEP shares fell.

British shares edged lower, weighed down by banking stocks as Britain gets set to start negotiating its departure from the European Union.The dollar rose 0.4 percent against a basket of key currencies .DXY, bolstered by the widely expected U.S. rate increase and by political risks in Europe as Dutch elections get under way.The euro EUR= fell 0.4 percent on caution ahead of the Dutch vote.U.S. long-dated and benchmark Treasury yields edged lower after the drop in oil prices was viewed as a deflationary sign, but the drop in yields was limited as investors awaited the Fed's policy statement.Prices on benchmark 10-year Treasuries US10YT=RR rose 2/32 to yield 2.600 percent, from 2.607 percent late on Monday. (Additional reporting by Rodrigo Campos in New York and Nigel Stephenson in London; Editing by Bernadette Baum and Nick Zieminski)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: Mar 15, 2017 02:45 AM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See

{if $hideJSforEU != 'yes'} {/if}