Global equity markets slumped on Tuesday, denting the recent recovery in riskier assets as oil prices tumbled on signs that a proposed deal to freeze output by major producers was not on the horizon.
After gains of more than 5 percent on Monday, which had helped push a gauge of world equities up more than 1 percent, both Brent LCOc1 and U.S. crude CLc1 turned sharply lower after Saudi Oil Minister Ali Al-Naimi said he welcomed all sources of supply, while Iran was seen as unlikely to agree to an output cap.
The Dow Jones industrial average .DJI fell 188.88 points, or 1.14 percent, to 16,431.78, the S&P 500 .SPX lost 24.23 points, or 1.25 percent, to 1,921.27 and the Nasdaq Composite .IXIC dropped 67.02 points, or 1.47 percent, to 4,503.58.
European shares also moved lower on the crude weakness, along with and disappointing updates from Standard Chartered (STAN.L), down 6.7 percent, and BHP Billiton (BLT.L), down 6.1 percent. A weak sentiment reading of German manufacturers also raised concerns about the health of the region's largest economy.
Reference: Reuters
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