Russian Central Bank Hoists Interest Rates, US Crude Sinks to Mid-$50’s
December 16, 2014 7:10 am
Sliding oil prices and a downbeat China factory survey weighed on Asian shares on Tuesday, while the Rouble jumped against the dollar after Russia sharply increased its benchmark interest rate from 10.5% to 17% in a bid to halt a collapse in its currency. U.S. stocks ended lower in a volatile session on Monday as oil prices extended their selloff, adding to worries about weak global demand. The losses follow the S&P 500’s worst weekly performance since May 2012. The index is now down 3.4% since Dec. 8 but is still up 7.6% for the year so far. The S&P500 closed at 1,989 and the Dow closed at 17,180.
Risk aversion helped pushed the dollar lower against the safe-haven Yen. The Dollar was slightly down on the day at 117.77 Yen, approaching a low of 117.44 touched last Thursday, and moving further away from its seven-year high of 121.86 set on Dec. 8. The Euro was slightly up against the Dollar at $1.2442. The Australian Dollar hit 4 1/2-year low of $0.8200 after a private survey showed activity in China’s factory sector contracted in December for the first time in seven months.
U.S. crude was down 0.4% in Asian trade at $55.69 a barrel, after touching a fresh 5 and a half year low of $55.02 on Monday. Brent Crude shed about 0.4% to $60.82 after dropping as low as $60.20 on Monday, its lowest since July 2009. Spot gold added 0.3% to $1,195.90 an ounce after falling more than 2% on Monday, its deepest slide in over a year following the slump in oil prices.
Within the equity space BT has entered exclusive talks with the owners of EE for a potential £12.5b ($19.6b) acquisition deal to give the former UK state telecoms firm the top position in mobile as well as fixed line broadband services. The stock was at 396p per share down 0.2% in early trade.
Sliding oil prices and a downbeat China factory survey weighed on Asian shares on Tuesday, while the Rouble jumped against the dollar after Russia sharply increased its benchmark interest rate from 10.5% to 17% in a bid to halt a collapse in its currency. U.S. stocks ended lower in a volatile session on Monday as oil prices extended their selloff, adding to worries about weak global demand. The losses follow the S&P 500’s worst weekly performance since May 2012. The index is now down 3.4% since Dec. 8 but is still up 7.6% for the year so far. The S&P500 closed at 1,989 and the Dow closed at 17,180.
Risk aversion helped pushed the dollar lower against the safe-haven Yen. The Dollar was slightly down on the day at 117.77 Yen, approaching a low of 117.44 touched last Thursday, and moving further away from its seven-year high of 121.86 set on Dec. 8. The Euro was slightly up against the Dollar at $1.2442. The Australian Dollar hit 4 1/2-year low of $0.8200 after a private survey showed activity in China’s factory sector contracted in December for the first time in seven months.
U.S. crude was down 0.4% in Asian trade at $55.69 a barrel, after touching a fresh 5 and a half year low of $55.02 on Monday. Brent Crude shed about 0.4% to $60.82 after dropping as low as $60.20 on Monday, its lowest since July 2009. Spot gold added 0.3% to $1,195.90 an ounce after falling more than 2% on Monday, its deepest slide in over a year following the slump in oil prices.
Within the equity space BT has entered exclusive talks with the owners of EE for a potential £12.5b ($19.6b) acquisition deal to give the former UK state telecoms firm the top position in mobile as well as fixed line broadband services. The stock was at 396p per share down 0.2% in early trade.
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