In March 2009, oil played at the $50 mark, today it reached $49.31 and stocks followed suit.
US shale, a world supply glut and every conspiracy theory possible is being blamed for the price of oil falling to levels last seen 5.5 years ago. Monday also saw the start of the stock fall with every index across the board suffering losses.
In Europe is started with the so called Grexit’ as rumours spread and were refuted that Germany was ready to see Greece exit the European Union. Data then appeared with Germany showing the lowest inflation in 5 years at 0.1%, slowing to almost deflationary levels and giving the European Central Bank the amber light to ready for quantitative easing.
In European indices, the bulls left the stocks and made their way to bonds. The Gilt10yr GBP bond saw a rise from 119.39 to 120.41, a level last seen in May 2013. The US10yr and the US30yr also rose slightly.
Stocks however fell on the back of oil and political issues. The USA30 [Dow Jones] plunged from 17743.5 to 17390.5, closing at 17470. Whilst the German30 [DAX] lost over 340 points falling from 9777 Friday’s close down to 9450.
The DollarIndex in comparison reached high levels of 92.02, last seen in November 2005.
MT4 chart: WTI oil
MT4 chart: Greece20
MT4 chart: USA30
MT4 chart: Germany30
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