A Renault Espace car is pictured at a dealership near Nantes, France. Renault lost 5.3% yesterday despite saying it had reached an agreement with its alliance partner Nissan and the Paris government to defuse tensions sparked by France raising its stake in the automaker.

AFP
London

Global oil prices tanked yesterday close to seven-year lows on oversupply woes, sparking a fresh wave of selling on European and US stock markets as panicked investors fled the energy sector.
Oil has collapsed by more than 10% since the 13-nation Organisation of the Petroleum Exporting Countries decided against cutting output despite plunging prices, weak global demand and the stubborn supply glut. That has sent shockwaves across world equity markets because low oil prices slash profits for energy majors like BP, Total and Royal Dutch Shell.
By the close, major European markets saw early losses deepen with the London FTSE 100 index shedding 1.8% to drop at 5,953 points, while Frankfurt and Paris lost 2.2% in value for a two-month low at 10,340 points and 4,550 points.
Old Mutual insurance and banking firm slumped 10.62% to 155.70 pence with its close exposure to South Africa, where the surprise removal this week of Nhlanhla Nene as finance minister caused consternation.
French automaker Renault lost 5.3% despite saying it had reached an agreement with its alliance partner Nissan and the Paris government to defuse tensions sparked by France raising its stake in the automaker.
Nissan shares also fell back on Wall Street, where they are listed as foreign shares (ADRs).
US stocks were down at mid session, with investors selling off industrial heavyweights Dow Chemical and DuPont after they confirmed plans to merge.
At 1700 GMT the Dow Jones Industrial Average was off 1.35% at 17,338.24 points with the broad-based S&P 500 and the tech-rich Nasdaq Composite Index similarly heading south.
Dow Chemical and DuPont both gave up about half the sharp gains that came Wednesday on leaked news of their mega-merger, losing 2.9% and 4.6% respectively.
Crude, which has slumped since Opec left its oil output at a record high level last week, took another tumble after the International Energy Agency (IEA) said oversupply would persist until late 2016.
In response, Brent crude futures for January delivery collapsed to $38.04 per barrel — a level last seen on December 31, 2008, during the global financial crisis — and continued downwards to $38.05.
US benchmark West Texas Intermediate (WTI) for delivery in January dived to $35.80 — last witnessed in February 2009.
“Comments from the IEA have ... seen both WTI and Brent fall aggressively, after they (indicated) that the unrelenting supply would see oil prices lower into the new year,” said analyst James Hughes at trading firm GKFX.
Traders were also positioning themselves before the weekend and next Wednesday’s expected interest rate hike, the first in nine years, from the US Federal Reserve.Fresh wave of stock selling
in Europe on 7-yr oil lows

A Renault Espace car is pictured at a dealership near Nantes, France. Renault lost 5.3% yesterday despite saying it had reached an agreement with its alliance partner Nissan and the Paris government to defuse tensions sparked by France raising its stake in the automaker.

AFP
London


Global oil prices tanked yesterday close to seven-year lows on oversupply woes, sparking a fresh wave of selling on European and US stock markets as panicked investors fled the energy sector.
Oil has collapsed by more than 10% since the 13-nation Organisation of the Petroleum Exporting Countries decided against cutting output despite plunging prices, weak global demand and the stubborn supply glut. That has sent shockwaves across world equity markets because low oil prices slash profits for energy majors like BP, Total and Royal Dutch Shell.
By the close, major European markets saw early losses deepen with the London FTSE 100 index shedding 1.8% to drop at 5,953 points, while Frankfurt and Paris lost 2.2% in value for a two-month low at 10,340 points and 4,550 points.
Old Mutual insurance and banking firm slumped 10.62% to 155.70 pence with its close exposure to South Africa, where the surprise removal this week of Nhlanhla Nene as finance minister caused consternation.
French automaker Renault lost 5.3% despite saying it had reached an agreement with its alliance partner Nissan and the Paris government to defuse tensions sparked by France raising its stake in the automaker.
Nissan shares also fell back on Wall Street, where they are listed as foreign shares (ADRs).
US stocks were down at mid session, with investors selling off industrial heavyweights Dow Chemical and DuPont after they confirmed plans to merge.
At 1700 GMT the Dow Jones Industrial Average was off 1.35% at 17,338.24 points with the broad-based S&P 500 and the tech-rich Nasdaq Composite Index similarly heading south.
Dow Chemical and DuPont both gave up about half the sharp gains that came Wednesday on leaked news of their mega-merger, losing 2.9% and 4.6% respectively.
Crude, which has slumped since Opec left its oil output at a record high level last week, took another tumble after the International Energy Agency (IEA) said oversupply would persist until late 2016.
In response, Brent crude futures for January delivery collapsed to $38.04 per barrel — a level last seen on December 31, 2008, during the global financial crisis — and continued downwards to $38.05.
US benchmark West Texas Intermediate (WTI) for delivery in January dived to $35.80 — last witnessed in February 2009.
“Comments from the IEA have ... seen both WTI and Brent fall aggressively, after they (indicated) that the unrelenting supply would see oil prices lower into the new year,” said analyst James Hughes at trading firm GKFX.
Traders were also positioning themselves before the weekend and next Wednesday’s expected interest rate hike, the first in nine years, from the US Federal Reserve.