Oil Prices, Stock Markets Slide; Dollar Higher
Umer Jamshaid 2 months ago Fri 09th November 2018 | 09:30 PM
Oil prices and stock markets slumped Friday, with Brent North Sea crude tumbling under $70, while the dollar strengthened as the Federal Reserve flagged more US interest rate hikes.
Brent struck a seven-month low points on surging US energy stockpiles before a weekend meeting of major oil producing nations.
Tokyo ended down 1.1 percent. Hong Kong shed 2.4 percent and Shanghai finished 1.4 percent lower, also after data showed another drop in Chinese factory prices, while tech firms were hit by a series of weak earnings results from mainland firms.
It later recovered to $69.75, but still down almost a dollar since Thursday's close.
Shares in European energy companies meanwhile tanked in the wake of oil's drop.
BP shed 2.0 percent, Shell gave up 1.0 percent and Total lost 2.5 percent.
Stock markets had enjoyed a midweek rally after traders bet that the expected gridlock on Capitol Hill would keep US President Donald Trump from pushing through measures that would likely stoke inflation and in turn rate hikes.
Rising US borrowing costs have been one of the major issues weighing on global equities this year.
However after its latest policy meeting Thursday, the Fed repeated that it expected "further gradual increases" in the key interest rate as the US economy strengthens.