Oil and stocks fall at start of data-laden week

Oil and stocks were lower on Monday (September 28th) at the start of week laden with economic events that will provide investors a clearer picture of the state of the global economy.

Europe’s indices followed Asian bourses lower, with the Stoxx Europe 600 sliding nearly one per cent in morning trade. It had rallied 2.8 per cent on Friday after Federal Reserve chair Janet Yellen said the US central bank is still on course to raise rates in 2015.

But concerns about global growth and corporate earnings in the US dented market confidence and sent US stocks lower last week.

Sentiment also weakened on Monday as International Monetary Fund head Christine Lagarde warned global growth forecasts are set to be revised down.

Earlier, the Nikkei 225 in Japan had slumped 1.3 per cent to close down 235.40 points at 17,645.11.

The FTSE 100 dropped 1.34 per cent to 6,027.34, dragged lower by commodities giant Glencore, which shed 20 per cent to a new record low.

Miners Anglo American and BHP Billiton also weighed as they fell 6.7 per cent and 3.9 per cent respectively. Vodafone shares fell almost four per cent after news the firm had ended talks with Liberty Global over a possible asset swap.

In Frankfurt, the DAX was also down more than one per cent, while France’s CAC 40 dropped 1.7 per cent. Stocks futures trading pointed to a lower open on Wall Street.

Oil was lower despite indications of falling production in the US.

On the New York Mercantile Exchange, US light crude for November delivery slid nearly two per cent to $44.81 a barrel. In London, Brent crude slipped 1.9 per cent to $47.71.

Crude prices are on course for an 11 per cent fall in September as concerns about oversupply and global demand weigh.

After the Federal Reserve left interest rates on hold at its last meeting, investors are cautious ahead of a key week of data for the global economy.

Friday’s non-farm payrolls figures from the US will be closely watched for signs of when the central bank could lift rates, while several Fed officials are also due to speak this week.