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European stocks slip over 2%, FTSE 100 falls 2.1%

European stocks slip over 2%, FTSE 100 falls 2.1%

GREECE: Global stock markets have tumbled as oil value hit new five-year low, China held tight on speculative trading and Greece sparked changed worries about the eurozone.
“Misery loves company; never has this been truer than on the markets today,” Connor Campbell, analyst at Spreadex traders, said.
“Another round of poor economic data, more volatility from the permanently volatile Greece and oil’s continued descent into the abyss has seen a dismal day…”
The red tide on trading screens began in Asia, where equity markets retreated on profit-taking after a healthy run-up over the past week, while energy firms took a hiding.
Tokyo dropped 0.7 per cent, snapping a seven-session winning streak, while Sydney tumbled 1.7 per cent as energy shares were punished.
In China, Shanghai’s equity market sank 5.4 per cent after authorities announced a new rule late Monday tightening the use of corporate bonds as collateral for short-term financing – a move analysts said will curb investors’ ability to trade on margin.
“Risk appetite suffered further setbacks during today’s session as crude oil prices slid to a five year low, prompting investors to take flight in safe haven assets,” Sucden Research analyst Kash Kamal said.
After hitting its new trough at $US65.29 a barrel, Brent North Sea crude for delivery in January recovered to $US66.75, up US56c from Monday’s close.
US benchmark West Texas Intermediate (WTI) for January also hit the lowest level since 2009, reaching $US62.25 a barrel. It later stood at $US63.70, up US65c from Monday.
Crude prices have plunged by more than 40 per cent from their 2014 peaks in June owing to slowing growth in China and emerging-market economies, a recession in Japan and a near-stall in the eurozone.
Cheap oil will hurt oil exporters dependant on crude revenues, and the stock markets of the energy-rich Gulf states took a beating.
The decline was led by the Dubai Financial Market, which dropped 6.0 per cent to a five-month low, before a partial recovery.European indices fell sharply, where added to the mix were concerns about a fresh crisis in Greece that could renew worries about the struggling eurozone.London’s benchmark FTSE 100 fell 2.1 per cent to 6,529.47 points, in Paris the CAC 40 sank 2.6 per cent to 4,263.94, while in Frankfurt the DAX 30 shed 2.2 per cent to 9.793,71 points.