European shares close at 12-month low on oil price slide
Stock markets in Europe suffered sharp falls in early trade as oil price volatility continued to weigh on investors
Britain’s benchmark index eased back from intraday lows in afternoon trade, buoyed by a jump in mining stocks.
Earlier in the day, the blue chip index tumbled by more than 2pc and looked set to close at its lowest level in more than three years, as global growth jitters and depressed oil prices weighed on investors.
However, the FTSE 100 closed down 42.74 points, or 0.72pc, at 5,918.23.
Among the miners, Anglo American leapt by 13.6pc, while Glencore rose 9.4pc to 74.4p.
Meanwhile, European bourses fell to 12-month lows. The German DAX and the CAC in Paris lost 1.7pc and 1.8pc respectively.
Renault was among the biggest laggards on European markets when it plummeted by as much as 20pc in intraday trade following inspections at three of its sites in an emissions probe.
Mike van Dulken, of Accendo Markets, said: “The negative opening call comes after another late sell-off and heavy stateside losses driven by continued oil price volatility, which sapped sentiment, while attacks in Jakarta have added to the fray overnight to take Asian markets back to three-year lows.”
Attacks in Jakarta left at least six dead after suicide bombers targeted a Starbucks cafe.
Overnight, China’s yuan weakened and stock markets bounced back. Even a torrid session on Wall Street did not hinder the rebound in Chinese stock markets in afternoon trading. The CSI300 index rose 2.1pc to 3,221.57, while the Shanghai Composite index made gains of 2pc.
It was another ugly day for crude oil, which sank below the $30-a-barrel mark earlier in the week, and despite trading higher yesterday, crude inventory data from the US Energy Information Administration proved to be enough to drag it down again.
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Last night on Wall Street, US stock markets sank towards their lowest level in three months and entered correction territory after another oil-inspired sell-off.
Naeem Aslam, of Ava Trade, said: “Sentiment is immensely negative over in Europe and it has filtered from Wall Street where the S&P500 slipped below the 1,900 mark and entered officially in a correction territory with respect to its all-time high.”
However, this afternoon US stock markets turned positive, with the Dow Jones industrial index 1.3pc higher and the S&P 500 up 1pc by 5.30pm.