Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil slides, political worries weigh on sentiment

Stock MarketsMay 30, 2017 12:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Traders work on the floor of the NYSE in New York

By Herbert Lash

NEW YORK (Reuters) - Oil prices slid on Tuesday on concerns of a persistent global supply glut while U.S. and European political worries combined to subdue investor sentiment and weaken equity markets around the world.

The dollar fell against most currencies, weighed by a drop in U.S. Treasury yields after U.S. inflation data reinforced the notion that the Federal Reserve will only raise interest rates one more time in 2017.

Shares on Wall Street, in addition to Germany's DAX index (GDAXI) and Britain's FTSE (FTSE), are trading near record highs, which is keeping stocks from moving higher as political uncertainty picks up on both sides of the Atlantic.

Shan Osborne, chief FX strategist at Scotia in Toronto, said there is a whiff of risk aversion about the equity markets in Japan, Europe and on Wall Street fell. Markets in China and Hong Kong were closed for holidays.

U.S. President Donald Trump is considering wider staff changes amid growing political fallout over U.S. probes into Russia and his presidential campaign. A senior aide to Trump resigned on Tuesday.

"The uneasiness created by the political situation just continues to leave the market troubled over where this is all headed," said Rick Meckler, president of hedge fund LibertyView Capital Management LLC in Jersey City, New Jersey.

Continued low interest rates and reasonably good earnings are positive, but for investors to commit new money there need to be some changes, such as tax proposals and healthcare, the Trump administration had promised, Meckler said.

"They do seem just really bogged down in political battles," he said.

On Wall Street, the Dow Jones Industrial Average (DJI) fell 36.22 points, or 0.17 percent, to 21,044.06. The S&P 500 (SPX) lost 2.84 points, or 0.12 percent, to 2,412.98 and the Nasdaq Composite (IXIC) dropped 3.84 points, or 0.06 percent, to 6,206.35.

In Europe, the pan-regional FTSEurofirst 300 index (FTEU3) of leading shares fell 0.23 percent to close at a provisional 1,533.49.

MSCI's gauge of stocks across the globe (MIWD00000PUS) shed 0.08 percent.

Signs that elections in Italy may come as early as September weighed on stocks and initially on the euro. British blue chips fell slightly less than two weeks before a general election that will shape talks for the country's exit from the European Union.

The dollar index was down 0.18 percent at 97.271 (DXY), with the euro was up 0.2 percent at $1.1186.

Against the safe-haven yen , the dollar dropped 0.4 percent to 110.79 yen.

Tuesday's U.S. economic data, while mixed, still backed the expectation that the Fed will raise interest rates next month, analysts said.

Benchmark Brent crude (LCOc1) dropped to a low of $51.19 before recovering ground to trade down 86 cents at $51.44.

The Organization of the Petroleum Exporting Countries and other oil producers, including Russia, agreed last week to keep a tight rein on supply until the end of the first quarter of 2018, nine months longer than originally planned.

"The oil market remains on the back foot," said Stephen Brennock, analyst at London brokerage PVM Oil Associates.

Benchmark 10-year Treasuries were last up 7/32 in price to yield 2.2237 percent.

Oil slides, political worries weigh on sentiment

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email