The main index of leading stock exchanges in Europe on Wednesday again entered the red zone since failed to stabilize after two sessions of large swings because of the situation in China. At 11.30 hours, the Frankfurt DAX dropped by 1.18 percent, in Paris the CAC 40 – by 1.17 and London’s FTSE100 fell by 1.33%.
US indices also fell
On Tuesday, the major indices on Wall Street ended with a decline, although in early trade seemed that markets will offset some of the losses of the past few days after China cut interest rates. At the end of trade there were massive sales, resulting in the Dow Jones closed with a fall of 1.29%, although in the beginning started with a growth of over 2%. The other leading stock index – S & P 500 fell 1.35% after rising 3.5% in the beginning.
Analysts are of the view that market participants react too sensitively to what is happening in Asian markets.
Slight increase in oil
Crude oil rose slightly Wednesday, but still close to the minimum for the last six and a half years, writes Reuters. The price of Brent was 43.30 dollars per barrel, an increase of 0.21%. US light crude rising by 0.43 percent to 39.48 dollars.
According to Daniel Ang, analyst at Phillip Futures Pte Ltd, the lowering of interest rates in China did not allow the oil price to reach a new low. “With the new day, however, come new challenges. Perhaps the American oil reserves will bring down the prices down today because of slowing its petroleum activities.”