Oil Trims Losses, but Fails to Lift Equities
Oil prices recovered from the daily lows despite oversupply concerns, but have failed to lift equity markets from session lows.
At the time of writing, Brent oil was trading largely unchanged on the day around $40/barrel. Prices hit a low of $39.48 earlier today on reports of rise in Iranian oil exports and record high US inventories.
On similar lines, WTI oil also recovered from the daily lows, but still trades 0.80% lower on the day around $38/barrel.
However, the recovery has failed to support stock markets in Europe. Stoxx 50 stays 1.3% lower on the day and so are other major European equity markets. Recovery in oil appears to be a technical push as fundamentals still point to weakness ahead.
(Market News Provided by FXstreet)
