Dow, S&P 500 edge up as oil, growth worries weigh

Global stocks resumed their recent selloff Wednesday as oil prices sank to a 12-year low and resurgent concerns about global growth snapped a brief bout of stabilization in financial markets. The IMF downgraded the outlook for developing economies to 4.3 percent growth from a forecast of 4.5 percent in October.

European commodity stocks performed well, with BHP Billiton climbing 3.0 percent, Arcelor Mittal rising 5.8 percent and German industrial giant Thyssenkrupp gaining 0.5 percent.

The crash of crude oil continues Wednesday on Wall Street, and it’s taking the rest of the stock market with it. “Short of any upside surprises economically, we need to see equity prices fall another 10 percent”.

Goldman Sachs dropped 0.2 percent after reporting fourth-quarter earnings of $574 million, down 71.8 percent from the year-ago level due to a hefty charge to settle USA litigation alleging it defrauded investors on mortgage-backed securities.

Losses in the volatile Shanghai Composite Index were comparatively muted, as the index lost 1%, while Australia’s S&P ASX 200 fell 1.3%. Markets in Southeast Asia also retreated.

USA stocks struggled through a turbulent day Tuesday and eked out small gains, led by utility and consumer stocks.

More than 1,000 NYSE-listed stocks hit 52-week lows in the first 20 minutes of trading, the most since August 24, Reuters reported.

The Dow Jones Industrial Average rose 27.94 points (0.17 per cent) to 16,016.02, while the broad-based S&P 500 added a mere 1.00 points (0.05 per cent) at 1,881.33.

The tech-rich Nasdaq Composite Index shed 11.47 (0.26 percent) at 4,476.07. Major indexes had plunged Friday, and the Dow and S&P 500 are coming off their worst opening weeks of a year in history.

The International Energy Agency said in its latest report Tuesday that oil prices would likely slide further this year as the market adjusts to the extra oil from producers such as Iran. Brent crude, a benchmark for global oils, lost 60 cents to $28.16 in London.

CURRENCIES: The dollar declined to 116.20 yen from 117.46 in the previous trading session.