Stock Markets Drop On Commodity Strains

LONDON, (APP - UrduPoint / Pakistan Point News - 26th Oct, 2016 ) - World stock markets mostly retreated Wednesday, dragged lower by falls for miners' shares and oil prices, traders said. After declines for the bulk of Asia's stock markets, Europe's top indices were showing losses of 1.0 percent compared with Tuesday's closing levels.

The heaviest faller on London's benchmark FTSE 100 index was miner Antofagasta, which had shed 6.5 percent at 506 pence approaching midday in the British capital. "By far and away the biggest falling stock on the leading UK benchmark is Antofagasta with the London-listed copper miner seeing its share price plummet after the release of a downbeat production update," said David Cheetham, market analyst at XTB trading group.

"The release warned that the firm's output will be close to the lower end of its predicted range at the end of the year and has clearly worried investors." In earlier Asian trading hours, energy firms were hit by sinking oil prices as fresh fears about a planned output cut by major producers was fanned by a report Russia would not take part.

Crude had been in the ascendancy since last month when the Organization of the Petroleum Exporting Countries, and later Moscow, agreed to output cuts in a bid to support prices. But both contracts tumbled more than one percent Tuesday as the Russia-based Interfax news agency said the country's envoy at OPEC, Vladimir Voronkov, had said output cuts are not "an option for us".

And oil prices extended losses Wednesday ahead of US energy inventory data. The report came days after key OPEC member Iraq said it should be exempted from the final deal as it was fighting a war against the Islamic State group.

"They say talk is cheap and OPEC appears to be approaching the limits of its ability to jawbone oil higher without something concrete to put on the table," Jeffrey Halley, senior market analyst at OANDA, said in a note.

Share price reaction for Apple suppliers was meanwhile mixed despite the US titan announcing a fall in revenue and profits, then issuing a below-par sales outlook for the crucial holiday period.