Our SP usually follows oil for some reason. News article on Opec...
Associated PressU.S. stocks pared losses of more than 2 per cent and oil bounced off of its lowest level in 12 years.
U.S. stocks pared losses of more than 2 per cent and oil bounced off of its lowest level in 12 years after the Wall Street Journal reported that OPEC members may be ready to cooperate on reducing crude output.
The Dow Jones Industrial Average added almost 200 points from its session low, while the Standard & Poor’s 500 Index cut its loss to 1.2 per cent at 2:50 p.m. in New York. The selloff earlier took Europe’s benchmark gauge to the lowest level since 2013 and left the MSCI All-Country World Index down 20 per cent from a record. Investors ignored a second day of testimony from Janet Yellen, whose signal that the Federal Reserve won’t rush to raise rates in the face of market turmoil failed to stem a selloff in risk assets from bank shares to crude oil and emerging-market currencies. The yen leaped to its highest in more than a year. Major sovereign bond markets rallied, pushing 10-year Treasury yields toward 1.6 per cent. Gold rose beyond $1,200 an ounce.
Signals by central banks from Europe to Japan that additional stimulus is at the ready are failing to ease investor concern that global growth will keep slowing. Citigroup’s Economic Surprise Index already indicates data in Group of 10 economies are falling short of estimates by the most since April 2013, and a selloff in crude oil and weakening credit markets are exacerbating the malaise. Yellen suggested that the central bank might delay, but not abandon, planned interest-rate increases in response to recent turmoil in financial markets.
“Central bank policies and the uncertainty around their effectiveness is the big macro concern right now,” said Leo Grohowski, who helps manage more than $184 billion in client assets as chief investment officer of BNY Mellon Wealth Management in New York. “There’s a large disconnect right now between what the Fed might do and what they’re saying and what the market is expecting. There’s a lot of Fed uncertainty back on the table reminiscent of late last summer.”
Bloomberg.com