Global stock markets slide, oil falls below $30 a barrel

The Dow Jones industrial average fell 380.56 points, or 2.32 percent, to 15,998.49.

The S&P 500 index slid 41.51 points, or 2.2 percent, to 1,880.33.

That means USA oil producers will continue to see their profits plunge and industry layoffs worsen. “People are uncertain, and when they’re uncertain they’re scared”.

Brent and USA crude oil are on track to close lower for a third consecutive week, down roughly 20% from their 2016 highs.

At the right price, Indian refiners said they were keen to import more from Iran, as demand for fuel soars on 10 percent annual growth in auto sales, a rate that is now faster than China’s.

More than one-fifth of SP 500 stocks touched 52-week lows as the benchmark index slid to lows last seen in October 2014. Energy and financials stocks were down the most, about 3.8 percent. Marathon Oil slid $1.16, or 12.79 percent, to $7.91.

Wynn Resorts was the among the very few bright spots, rising 7.4 percent to $55.29 after reporting in-line of quarterly revenue.

Intel tumbled 10 percent to $29.48, its steepest drop in seven years, after the chipmaker’s results and forecast raised concerns about its growth. The stock fell $3.01 to $29.73.

Never before has Wall Street gotten off to a worse start to a year. A separate report from the Commerce Department indicated US retail sales dipped last month. Germany’s DAX lost 2.5%, while France’s CAC 40 dropped 2.4%. Gold surged 1.9% to $1094.10 an ounce.

The CBOE volatility index jumped as much as 29.2 percent to 30.95, it’s highest since September. Hong Kong’s Hang Seng dropped 1.5 per cent. Japan’s Nikkei 225 lost 0.5 per cent and South Korea’s Kospi slid 1.1 per cent. Bond yields and prices move inversely. The euro rose to 1.0911 dollars from 1.0862 dollars, while the dollar fell to 117.05 yen.

Oil prices have plummeted to $US29 a barrel on the impending resumption of Iranian oil exports into an already flooded market as Global sanctions against the country are lifted, dragging equity indexes around the world sharply lower. Being the second-largest consumer of crude in the world, economic weakness in the country leads to investors’ speculations that demand for crude would remain low.

All 30 stocks in the Dow lost ground.

Not only did the oil-producing nation indicate it is on the verge of slowing production, but also it could set off a chain reaction of production cuts among other energy producers, according to Ole Hansen, head of commodity strategy at Saxo Bank. Sanctions on Iran may be lifted soon, allowing for a boost in oil shipments from OPEC’s fifth-biggest member.

Reports suggest beleaguered oil companies could be hit with further headwinds if Iran ups its oil output.

“We’re seeing the final capitulation”, said Tina Byles Williams, chief investment officer at FIS Group in Philadelphia, which oversees about $4.4 billion in assets under management.