Brent crude prices have dropped to their lowest level in two decades, at around $ 16 a barrel, as there is concern about an oversupply
Gambler IG hopes the FTSE 100 will open around 21 points after finishing Tuesday’s session, 172 points down to 5,641.
Oil prices continue to cause tremors in the markets, as the price of a barrel of crude oil continues to plummet overnight following the drop in demand and fears of a massive oversupply of crude oil.
Crude oil prices West Texas International (WTI), the norm for American oil, fell by around 7.3% to US $ 10.62 per barrel Wednesday morning, while Brent crude, the benchmark for world oil , fell 15.3% to $ 16.38 US per barrel, its lowest level in about two decades.
Metal prices have also come under pressure as the coronavirus pandemic leaves many people concerned that demand for natural resources will be affected due to the current economic closings.
President Donald Trump’s statements that the United States will act to support its energy industry have not calmed the markets, as has the news that Congress has agreed to a US $ 484 billion relief fund for the US economy, which could be approved by Thursday.
Overnight, the Dow Jones closed down 2.67% to 23,018 while the S&P 500 fell 3.07% to 2,736 and the Nasdaq fell 3.48% to 8,263.
Anxiety spread to Asian markets this morning, the Japanese Nikkei 225 down 1.29% while the Hong Kong Hang Seng was down 0.26%.
In currency markets, the pound fell 0.1% to US $ 1.2286 against the dollar, although UK inflation data could provide a catalyst for movements to change today as investors assess the health of the UK economy.
Important announcements expected on Wednesday:
Trading announcements: (), (),
Finals: (), (), PLC (LON :), RTW Venture Fund Limited (LON: RTW), PLC ()
Economic data: British inflation
Around the markets:
Sterling: US $ 1.2286, down 0.1%
Brent crude: US $ 16.38 per barrel, down 15.3%
Gold: US $ 1,684.72 per ounce, up 0.39%
Bitcoin: US $ 6,891, down 0.05%
- US crude oil prices for June delivery plunged nearly 50% Tuesday as global oil markets remained under intense pressure – FT
- Treasury is under increasing pressure to extend vacation plan as taxpayer-funded leave reaches 1.3 million – Telegraph
- More than 80 publicly traded companies have used the US $ 350 billion bailout fund to keep small businesses afloat – FT
- has more than doubled the number of new subscribers it expected in the past three months as more people signed up amid the coronavirus pandemic – Guardian
- Coca-Cola sales volumes fell by a quarter this month; beverage maker hit hard by coronavirus lockout despite initial storage – FT
- US Senate adopted nearly $ 500 billion small business coronavirus aid program Tuesday, including additional aid for hospitals and virus tests – Guardian