Energy companies push markets lower
On Monday, energy shares led stocks in Europe lower, the Russia ruble weakened and oil touched a one-month low after the world’s biggest crude producers failed to agree supply cuts at a meeting in Vienna. U.S. equity-index futures and Mexico’s peso clawed back some of their losses from Friday triggered by the FBI’s reopening of an inquiry into Hillary Clinton’s e-mails.
A gauge of energy companies on the MSCI All Country World Index slipped for a second day after the Organization of Petroleum Exporting Countries ended two days of talks on Saturday without agreeing any individual quotas.
The OPEC talks yielded little more than a promise that the world’s top oil producers would keep discussing ways to stabilize the market. Sovereign bonds were relatively muted Monday as investors awaited key central bank meetings from the U.K. and U.S. later in the week. Global equities lost ground in October and government bonds also slid amid speculation the Federal Reserve will hike interest rates this year.
The Stoxx Europe 600 Index dropped 0.5 percent as of 7:19 a.m New York time, set for a sixth day of declines, the longest losing streak since February. The benchmark has fallen 1.1 percent in October, a month that has yielded gains in five of the past six years.
BP Plc and Tullow Oil Plc fell more than 1 percent, dragging a measure of energy companies to the worst performance of the 19 industry groups on the Stoxx 600, as oil declined after European markets closed Friday.
Crude oil fell 0.6 percent to $48.40 a barrel in New York, trading near the lowest since the end of September. Oil has fluctuated near $50 amid skepticism about whether OPEC can implement the first supply cuts in eight years at an official meeting in November.