Stock markets worldwide continued to decline for the third consecutive session as the rout in oil and other commodities deepens. In the U.S., the Dow Jones Industrial Average declined 75.7 points, or 0.43%, to trade at 17,492.3. The session has seen a 300-point trading range, marking Wednesday’s session as one of the more turbulent days in the last few weeks. The Standard & Poor’s 500 index fell 15.97 points, or 0.77%, to trade at 2,047.62, putting the broad-market index in negative territory for the year with a 0.6% decline. The S&P 500 was weighed down by heavy declines in the technology and consumer-discretionary sectors, with a 1.5% and 1.2% decline, respectively. The Nasdaq Composite ended 75.38 points, or 1.48% lower, closing Wednesday’s trading session at 5,022.87. Despite an early-session rebound in oil and other commodities that helped lift the energy and materials sector, prices resumed their declines later in the session. A large increase in U.S. distillate stockpiles caused heating oil prices to tumble, countering any potential gains caused by the first decline in U.S. crude oil stockpiles in nearly three months. The slump in oil prices, which has caused declines for the last three trading sessions, has caused many indexes worldwide to move more than two standard deviations below their 20-day moving average, a fact that has prompted some analysts to claim that the market are reaching oversold levels.
In currencies, the euro showed strength, hanging on to most of its gains after a European Central Bank official made statements that were not aligned with the market’s expectations for more easing from the central bank. The common currency slipped 0.2% to trade at 1.09995 after briefly touching a one-month high of $1.1044. The euro was already in a bullish state after the ECB’s meeting last week disappointed many with reduced easing. However, the effect was deepened when Governing Council member Ewald Nowotny stated that the market’s expectations for easing were exaggerated. The dollar recovered against the yen, moving to 121.635 after touching a one-month low of 121.07 overnight. The dollar index, pitting the greenback against six of its major peers, has gained 0.2% to 97.512, though it still remains close to its monthly low of 97.223 hit overnight.
This week’s major economic data releases continue today with the release of the Bank of England’s interest rate decision and U.S. jobless claims. To end the week, German inflation and U.S. retail sales data will be released on Friday.