Oil rebounds; growth outlook hits markets

Stocks in the US and Europe fell yesterday and the euro weakened after data showing contractions in manufacturing in both China and the euro zone and signs of a struggling US economy underlined worries about global economic growth. Crude oil rose after three days of steep losses, helping equities recover from session lows as energy shares rose. Still, the price of Brent remains down 6 percent on the week on concerns about demand prospects. Brent crude prices rose 1.4 percent to $ 109.64 yesterday. The Dow Jones industrial average was down 9.96 points, or 0.07 percent, at 13,568.00. The Standard & Poor’s 500 Index was down 3.33 points, or 0.23 percent, at 1,457.72. The Nasdaq Composite Index was down 10.42 points, or 0.33 percent, at 3,172.20. European equities closed 0.1 percent lower, and the MSCI world index shed 0.67 percent. Hong Kong’s Hang Seng index lost 1.2 percent. In the currency market, the euro fell 0.8 percent while the US dollar index rose 0.6 percent. The euro was pushed further from last week’s 4-1/2-month high, hitting a one week low of $ 1.294 before a small recovery. Spot gold, which is at its highest in over half a year, dropped 0.5 percent to $ 1,759.89 an ounce. World shares and other risk markets have lost momentum this week as investors take stock after the central banks of the US, Japan and the euro zone outlined plans for economic stimulus, contributing to a near 17 percent rise in the MNSI global index since June. Markets are grappling with whether prices ran “ ahead of themselves a little bit too fast,” Philip Wagner, senior vice president at Bryn Mawr Trust in Devon, Pennsylvania, told Reuters. From : Arabnews